What to do if you can’t pay credit card debt

How to pay off credit card debt

While credit card debt may seem overwhelming and unmanageable, every situation has a solution. Here are five simple steps that can help you regain control:

1. Work out exactly what you owe

Add up your total debt, including any interest. List all your credit accounts with:

• Outstanding balances
• Interest rates
• Minimum monthly payments

This will help you see the bigger picture and calculate how much you need to cover your monthly minimum payments. If your budget is tight, focus on making at least these minimum payments to avoid further fees or damage to your credit score.

If possible, cut back on non-essential expenses to free up more money for your repayments. Even small sacrifices can make a big difference over time.

If you're unsure where to begin, our six-step guide to tackling debt could help.

2. Prioritise high-interest debt

If you can afford to pay more than the minimum, focus on your highest-interest credit card debt first. This will save you the most money in the long run.

For example, if you're paying £100 per month on your cards and you can afford an extra £20, put that toward the highest interest card.

However, remember to address priority debts first — rent, mortgage, Council Tax, and energy bills all have more severe consequences if missed. Credit card debt is unsecured, which means it generally gives you more flexibility than priority debts, but it still needs to be managed. For detailed advice on priority debts, visit Citizens Advice.

3. Explore alternative options

If your current credit card repayments are unmanageable, consider these alternatives:

• Balance transfer credit cards — these may offer low or 0% interest for an introductory period, giving you breathing space to pay down your debt faster. Be mindful of transfer fees and introductory terms
• Debt consolidation loans — combine multiple debts into one payment with potentially lower interest. However, weigh the risk of paying more in the long term and avoid taking on new debt while repaying the loan

Many lenders provide an eligibility checker that won't affect your credit score, so use these tools to explore your options risk-free.

4. Speak to your lender

Get in touch with your lender if you're struggling to pay your card. Lenders deal with situations like this regularly and are often more flexible than people expect. If you genuinely can't make even the minimum payment, see the section below for specific guidance on what to ask for.

5. Seek professional advice

There's no need to face this alone. Free debt advice is available from UK charities such as StepChange, Citizens Advice, and National Debtline. These organisations can help you create a debt management plan or even talk to creditors on your behalf.

What if I can't afford the minimum payment?

If you genuinely can't afford even the minimum payment, the most important thing is to contact your lender straight away — before you miss the payment if possible.

Explain your situation honestly. Many lenders are required under FCA guidelines to treat customers in financial difficulty fairly, and may offer:

• A payment holiday — a temporary pause on payments, typically up to three months
• A reduced payment plan — paying a token amount each month while you get back on track
• An interest freeze — stopping interest from building while you repay the balance

Don't be tempted to ignore the problem. If you miss payments without contacting your lender, the debt can escalate quickly — interest builds, fees are added, and it can affect your credit score. Acting early gives you the most options.

If your lender isn't willing to help, or if you're dealing with multiple debts, contact StepChange or National Debtline for free, impartial advice.

I've lost my job and can't pay credit card bills

If you've recently lost your job, what once felt like manageable payments may now seem daunting. Here's how to approach the situation:

1. Check your insurance — if you have Short-Term Income Protection (STIP) or a similar policy, it may cover your credit card payments temporarily. Review your policy terms to see if you're eligible to claim
2. Contact your lender — let them know about your job loss as soon as possible. Many lenders are sympathetic and may offer temporary relief, such as payment holidays or reduced payments
3. Get advice from debt charities — they can provide tailored support for your situation and help you focus on finding a new job without additional financial stress

Persistent debt letters: What do they mean?

Receiving a persistent debt letter can be alarming, but it's designed to help you. This happens if, over 18 months, you've paid more in fees and interest than the amount you originally borrowed.

To resolve persistent debt, try to increase your monthly payments. If this isn't possible, contact your lender to explore alternative repayment plans.

Keep track of your progress

As you work through your debt, it's worth monitoring your credit score regularly — this helps you track how your score is recovering and spot any issues early. You can check your Equifax credit score for free through CredAbility.

Getting your budget in order can also make a big difference to how much breathing room you have each month. Our guide on how to build a budget in 7 days walks you through easy ways to take control of your money, step by step.