What are my options?

It is tempting to ignore letters from lenders. Try to think of your wider financial situation.

Try to find ways to pay more each month. This will pay off your balance faster.

What if I do not increase my repayments?

If you can afford to pay more, you really should.

If not, your lender can take action to make you pay more.

They may send letters that sound scary, but they are trying to help. It is better to get out of persistent debt.

If a lender demands more money, contact them as soon as you can. They will discuss ways to deal with the issue.

Here is what can happen as lenders try to make customers increase payments.

You have been making minimum payments for:

• 18 months

  You get a letter warning that you are in persistent debt.
  
  Your creditor asks you to pay more. They want to see you pay more towards your balance within 18 months.

• 27 months

  You get another letter reminding you to pay more.

• 36 months

  Your lender gets in touch again asking you to take action.
  
  They may offer you a way to pay off your account balance within a reasonable time. This is usually three to four years.
  
  They will look at your finances and could suggest:
  
  1. A new payment plan for what you owe at a rate you can afford
  
  2. That you pay what you owe using a loan or another credit card
  
  3. That your minimum payment increases. They will send you a letter if they plan to do this. They will tell you what to do if you cannot afford the new amount
  
  4. They may also suggest lowering your interest rate. To do this, they would have to suspend your account. That would impact your credit file.
  
  Your creditor will suspend your card or account if you do not contact them. This means you cannot use it. You will still be charged fees and interest.
  
  Get in touch with your lender as soon as you can.