Credit Card Minimum Payments and Persistent Debt in the UK Explained

Minimum payment

1%-3% of the balance

On 5,000 pounds at 22%

Minimum falls, interest does not

Persistent debt trigger

18 months of interest exceeding principal repaid

Provider duty

Prompt to raise the payment

The minimum shrinks as you pay

A percentage-based minimum falls with the balance, so payments get smaller exactly as the debt becomes cheaper to clear. On 5,000 pounds this can run for well over a decade.

Persistent debt rules now apply

After 18 months where interest and charges exceed the amount of principal repaid, the provider must prompt you to increase the payment, and eventually offer a repayment plan.

A fixed payment clears it

Set a standing order for a fixed sum rather than the minimum. 250 pounds a month clears 5,000 pounds in about two years at 22%.

Watch the order of allocation

Payments clear the cheapest debt first. Promotional balances get paid down before the expensive ones, which is why new spending is the last thing to be cleared.

FAQ