What is persistent debt?
If you’ve paid more in interest, fees and charges than you have towards the amount you’ve borrowed over an 18-month period, the Financial Conduct Authority (FCA) considers your account to be in ‘persistent debt’.
This can happen if you’ve been making minimum or low monthly payments for a long time. And it means it could take several years – and cost you more in interest and charges – to repay what you’ve borrowed.
If your account is in persistent debt, we’ll get in touch to offer support and suggest increasing your payments if you can afford to.
How will you contact me if I’m in persistent debt?
We’ll send you a letter or email to tell you how you can repay your balance quicker – and avoid paying more in interest and fees.
18 months:
- We’ll get in touch to say you’ve been in persistent debt for 18 months and recommend you pay more
- We’ll clearly explain the recommended amount you should pay to avoid going back into persistent debt
27 months:
- We’ll send a reminder 9 months later to update you on your progress
- If you’re still in persistent debt, we’ll explain what payments you need to make
- We’ll highlight the support available and encourage you to get in touch to discuss your options
36 months:
- If you remain in persistent debt, we’ll ask you to contact us so we can offer more support and help you repay your balance quicker
- This could be a repayment plan – and we may suspend your card to stop your balance increasing
Why should I increase my payments?
It’s important to make your minimum payments to avoid fees and charges. But making only low repayments for a long time can be an expensive way to borrow.
We recommend that when you can, try to pay a bit more than your minimum payment – as long as it’s affordable.
By paying more than the minimum payment when you can afford to, you could save money and repay your balance faster.
Minimum Payment Due
Recommended payment
Fixed payment
Payment type
Pay the minimum payment – £38.40 in the first month and decreasing
Pay the recommended payment of 7% of balance – £70 in the first month and decreasing
Pay £38.40 each month going forward
Months to clear balance
15 years, 2 months
5 years, 5 months
4 years, 1 month
Interest paid
£2,318
£627
Money saved compared to making the minimum payment
£1,691
MPD
Payment type
Pay the minimum payment – £38.40 in the first month and decreasing
Months to clear balance
15 years, 2 months
Interest paid
£2,318
Money saved compared to making the minimum
N/A
Recommended payment
Payment type
Pay the recommended payment of 7%* of balance – £70 in the first month and decreasing
Months to clear balance
5 years, 5 months
Interest paid
£627
Money saved compared to making the minimum
£1,691
Fixed payment
Payment type
Pay £38.40 each month going forward
Months to clear balance
4 years, 1 month
Interest paid
£844
Money saved compared to making the minimum
£1,474
If you’d like a bit of help working out all your credit card costs, there’s a free online calculator at cardcosts.org.uk.
What is the Recommended Payment?
This is a fixed percentage of your statement balance – higher than your usual contractual minimum payment amount. To help avoid persistent debt in the future, try increasing your payments to this amount if you can.
You don’t have to pay this higher amount. But if you can afford it, you’ll pay less interest and reduce your balance quicker. The percentage we suggest for your Recommended Payment will depend on your APR – we’ll let you know what the percentage is when we contact you if you’re in persistent debt.
How can I increase my payment?
You can increase your monthly payment through the Vanquis app. Just make a payment and select a percentage of your balance or a specific amount. If you have a regular payment set up, you can also change the amount on the payments tab in our app.
Help and support
If you think you may have a problem making your payments, please give us a call on 0330 099 3127*. Our friendly team are here to listen, not judge, and we’ll be sensitive to your individual situation.
The following organisations offer free impartial advice and support if you’re experiencing financial difficulties. They can recommend the most appropriate debt solution for your situation to help you get back in control of your finances.
- StepChange Debt Charity - 0800 138 1111* or visit stepchange.org
- MoneyHelper - 0800 138 7777* or visit moneyhelper.org.uk
- National Debtline - 0808 808 4000* or visit nationaldebtline.org
- Payplan - 0800 280 2816* or visit payplan.com
You can also find more info and support at on our money worries page.
*Call charge information
Network charges may apply. Calls to 01 and 03 numbers from UK landlines and mobiles are normally included in free plan minutes if available; otherwise calls to 03 numbers cost the same as calls to 01/02 prefix numbers. Calls to 0800 or 0808 numbers are free from mobiles and landlines. Find opening times here.