Store card minimum payments
All store cards have a minimum you need to pay back each month.
- Often just a bit more than the monthly interest
- It takes a long time to repay just minimum payments
Always try to pay more than the minimum amount if you can.
Store cards and persistent debt
Persistent debt means you have only made minimum payments over the last 18 months.
The Financial Conduct Authority (FCA) requires store cards to contact you about this.
After 18 months of persistent debt
At this point, you have more in interest and charges than towards your balance.
- Your store card provider will contact you
- They will tell you to take action
- The hope is that you stop having persistent debt by month 36
After 27 months
The provider contacts you again if your account remains in persistent debt.
They again tell you to take action.
After 36 months
The provider should offer you a way to pay off the persistent debt within three to four years.
They may suggest:
- An affordable payment or
- Using a loan or credit card to clear the debt
They may also consider:
- Freezing interest and charges
- Reducing your minimum payment
This may involve suspending your account, and could impact your credit file.
Store card arrears
Your account goes into arrears if you do not pay the minimum amount each month.
- Charges are added for each missed payment
- Charges are usually £12
Your creditor will contact you for the missing payments. If you do not pay:
- The account will default
- Further action may be taken
See our what your creditors can do section.