Persistent credit card debt: the 18, 27 and 36-month rules
A letter saying you are in “persistent debt” is not a default and not a threat. It is a rule the FCA made card providers follow — and how you answer it decides what happens next.
Rules checked against the FCA Handbook, CONC 6.7.27R–6.7.40G. Verified 2026-10-18. handbook.fca.org.uk
What counts as persistent debt
The test compares two numbers over the previous 18 months: how much of what you paid went towards principal — which the rules define as only the credit you drew down yourself — and how much went on interest, fees and charges. If the second is bigger, you meet the definition. Your provider has to check this at least once a month.
Three things take an account outside the 18-month rule: a balance that fell below £200 at any point in the period, a persistent-debt letter already sent in the previous 18 months, or the provider already giving you forbearance. Business credit cards are excluded altogether. The rules cover regulated credit cards and retail revolving credit, which includes many store cards; overdrafts have their own separate rules.
What your provider must do, month by month
| Point | What the rules require | What it means for you |
|---|---|---|
| 18 months CONC 6.7.27R | Tell you that you are in persistent debt, explain that paying more would cut your borrowing costs, encourage you to get in touch about your finances, warn what happens if the pattern continues for another 18 months, and give contact details for free debt advice. | The first letter. Nothing changes on the account yet. |
| 27–28 months CONC 6.7.29R | Between nine and ten months after the first letter, review your payments since then. If you are on course to stay in persistent debt, send the same warning again. | A reminder — and the last point to change the pattern before the 36-month stage. |
| 36 months CONC 6.7.30R–6.7.36G | If the pattern continued, take reasonable steps to help you repay faster without harming your finances: set out options, ask you to reply within a reasonable period, and say the card will be suspended or cancelled if you do not reply. | The decision point. Options can include a higher repayment plan or moving the balance to a fixed-sum personal loan. |
| If you cannot afford it CONC 6.7.37R–6.7.38G | Treat you with forbearance and due consideration, aiming at payments you can sustain — which may include reducing, waiving or cancelling interest, fees and charges. | The card is generally suspended or cancelled, unless that would cause you significant harm. |
The “reasonable period” is guidance, not a fixed number: the FCA expects it usually to be between three and four years, longer only in exceptional circumstances, and then not by much and at no extra cost to you.
Replying to a 36-month letter
The letter gives you a deadline. What matters is that you answer it, and that what you say is true of your budget. There are three honest replies:
- “I can pay more.” Confirm the option and the amount. Then make the payments — saying an option is affordable and not paying it leads to the card being suspended or cancelled.
- “I cannot pay more without missing essential or priority bills.” Say so, and say what you can afford. This is the reply that triggers forbearance. A budget worked through first makes the figure credible.
- No reply. The provider must suspend or cancel the card when the period ends. You still owe the balance; you simply lose the ability to add to it.
If you want to put a request for reduced interest in writing, the Letter Builder drafts it for you. If several cards are in the same position, the problem is usually bigger than one account — when you cannot afford card payments sets out the wider picture, and the minimum payment calculator shows why the pattern built up.
What persistent debt is not
It is not a missed payment, a default or a debt collection step. You can be fully up to date and still receive these letters. A default notice is a different legal document with a different deadline, under the Consumer Credit Act — if you have one of those, read that guide instead.
You never have to pay for debt advice. MoneyHelper (government-backed), StepChange, National Debtline and Citizens Advice all give free, confidential advice with no obligation. Your persistent-debt letter itself has to include debt advice contact details.
Common questions
Is persistent debt the same as being in arrears?
No. You can be fully up to date and still be in persistent debt. The test is what your payments went on over 18 months — more on interest, fees and charges than on the money you actually borrowed — not whether you missed any.
Can my card provider stop me using the card?
Yes, at the 36-month stage. If you do not reply to the request to repay more quickly, or say the options are affordable but then do not make the higher payments, the provider must suspend or cancel the card at the end of the period it gave you. Where you cannot afford the options, the FCA expects the card to be suspended or cancelled too, unless that would cause you significant harm — for example if you rely on it for essential living costs.
Do the rules apply to store cards and overdrafts?
They apply to regulated credit cards and retail revolving credit, which covers many store cards. Business credit cards are excluded. Overdrafts are covered by separate FCA rules on repeat overdraft use, not by these.
What if I cannot afford to pay more?
Say so in your reply. The provider must then treat you with forbearance and due consideration, which can include reducing, waiving or cancelling interest, fees and charges. Free debt advice before you reply makes sure the figures you give are realistic.