Persistent Debt in a term used by credit card lenders when you pay more in interest and charges on your credit card than you’ve repaid of the amount borrowed. If you’ve received a letter from your bank telling you that you have a ‘persistent debt’, you may feel upset, even if you don’t think you’re ‘in debt’ at that moment.
This persistent debt calculation is based on your activity for the last 18 months. Having a ‘persistent debt’ could make it more likely that you get into difficulty with debt in the future.
Minimum payments tend to only cover the interest and charges on the debt, or at most a very small amount of the balance. By paying more each month, you could reduce your credit card balance quicker and move your account out of its persistent debt status. By doing so, you could also save yourself money because you’ll pay less in interest.
If you are worried about persistent debt, or credit card debts, get in touch with Trust Deed Scotland today on 0141 221 0999.