What is persistent credit card debt?


A series of endless debt repayments with no end in sight is something that everyone dreads having to deal with, including us here at TWiCE. When it comes to repaying debts, one thing that TWiCE found to be a major challenge, was avoiding the persistent credit card debt cycle. What do we mean by that exactly?


Persistent credit card debt is a situation where your repayments are being chewed up by hefty interest rates and charges. This is something that our financial regulators and leading think tanks believe is a growing problem. You might be making your regular repayments at your regular time, but these payments aren’t actually going towards reducing your total amount owing. Instead, they cover the interest and administration charges for the loan, but little to nothing for the loan itself. The wheels are spinning but you’re not going anywhere.

About 6.6% of cardholders are in persistent credit card debt, roughly 2.1 million Britons. How do people get into a cycle like that you might ask? Surely when you look at your income vs. expenditure you’ll see what’s going on right? A common cause is large scale, life-shifting events such as divorce and redundancy, putting people in an unfortunate situation where they have to rely more on credit to make ends meet. In many cases, however, it can start small. An extra expenditure here and there, or a little splurge every now and again, can stack up into a more sizable amount that you owe. This is something that even our financial regulators admit can happen.


How can you avoid persistent credit card debt? At TWiCE we know that everyone’s circumstances are different, but there are a few things you can do to make sure you stay on top of your finances:

  • Keep a close eye on your current repayment agreement, be aware of the amount allocated to interest, charges and your loan from the monthly amount you pay..

  • Double check whether you would be able to pay back at a greater rate than what you are currently (margin permitting); that way you can make sure you’re reducing your debt at a rate faster than accumulated interest.

  • Pay off your credit card every month.


These are just a couple of options to consider to make sure you stay ahead, but if you’d like to find out a bit more about how TWiCE could help, click here.


If you think you are in a situation that could be labelled as persistent credit card debt, it might be worth getting into contact with TWiCE to see how we can work with you to take back control of your finances and break the debt cycle.

- Tom L


Disclaimer:  The above information does not replace financial advice.  Please ensure you seek independent financial advice before making any decisions regarding your finances.  We also recommend that you carry out your own research to ensure that this is right for your own unique circumstances.  Please note that we sometimes link to other websites but we cannot be held responsible for their content.



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