- Types of Debt
Credit Card Debt
Struggling with credit card debt? Understand how it builds, what happens if you don’t pay, and the options available to bring your balance under control.
What is credit card debt?
Credit card debt builds up when you borrow money using a credit card and don’t repay the full balance by your statement due date. Whatever’s left over carries into the next month, and interest gets added to it so if you’re only making minimum payments, the balance can shrink far more slowly than you’d expect.
How does a DMP affect your credit score?
Credit cards are designed for short-term, flexible spending. Debt tends to build when repayments are missed, or when only the minimum payment is made month after month, interest and charges then keep compounding on top of what’s already owed.
Priority or non-priority?
Credit card debt is a non-priority debt. It’s still important to deal with, but the immediate consequences of falling behind are generally less severe than priority debts like rent or council tax arrears.
What happens if you don't pay?
Interest and late payment charges (typically capped around £12 per missed payment) continue to build
Your provider may pass the debt to a collections team or third-party debt collector
Missed payments are reported to credit reference agencies, affecting your credit score
In more serious cases, a creditor could apply for a County Court Judgment (CCJ)
- Check Your Options
How Debt Bridge can help ?
If credit card debt is one part of a wider debt problem,
A Debt Management Plan can combine it with other non-priority debts into one affordable monthly payment. If your total unsecured debt is more significant, an IVA could allow a portion to be written off after a fixed term. We’ll look at your full picture before suggesting anything.