Debt & Money Problems
Credit Card Debt
Credit card debt can grow quickly because interest is charged on the balance you carry over. Understanding how it works, and knowing where to get free help, makes it easier to bring under control.
Key information
- Interest is charged on the balance you do not clear each month
- Paying only the minimum can mean the debt takes many years to clear
- Credit cards are non-priority debts, but should not be ignored
- Free debt advice is available and can help you agree affordable payments
On this page
How credit card debt builds up
A credit card lets you borrow up to a set limit and repay flexibly. If you clear the full balance each month you usually pay no interest. If you carry a balance over, interest is added — and because interest is charged on what remains, the debt can grow even while you keep paying.
Paying only the minimum each month keeps the account in good standing but is an expensive way to borrow, because so little comes off the actual balance. Clearing more than the minimum whenever you can makes a significant difference over time.
If you are struggling to keep up
Credit card debt is a non-priority debt, meaning the lender cannot take your home or cut off essential services. That does not mean you should ignore it — missed payments can lead to charges, a mark on your credit file and, eventually, court action to recover the money.
If you cannot keep up, contact your card provider. Lenders regulated by the FCA must treat customers in financial difficulty fairly and consider reasonable options, such as a temporary payment reduction or freezing interest. A free debt adviser can help you request this.
Extra protection on purchases
One benefit of paying by credit card is Section 75 of the Consumer Credit Act. For most purchases costing more than £100 and up to £30,000, your card provider can be jointly responsible with the retailer if something goes wrong — for example if goods are faulty or a company goes out of business. This can be a valuable route to a refund.
Your rights & protection
- Under Section 75 of the Consumer Credit Act, your card provider can be jointly liable for eligible purchases between £100 and £30,000.
- Lenders must treat you fairly if you are in financial difficulty and consider reasonable forbearance, such as reducing or pausing payments.
- You can complain to your provider and escalate free of charge to the Financial Ombudsman Service if you are not satisfied.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- MoneyHelper, Credit and purchases (opens in a new tab). Accessed 22 Aug 2026.
- Citizens Advice, Getting your money back if you paid by card (opens in a new tab). Accessed 22 Aug 2026.