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Learn more about the types of credit card, what happens if you can’t pay and how to get help if you’re struggling with credit card debt.

Credit Card Debt - Help and Guidance

A very common type of debt that we deal with here at Debt Movement is credit card debt. They can be a useful way to make larger purchases and can often be a safer form of payment as you do get extra protection from the credit card company if things go wrong with your purchase. However, credit card debt is easy to get into as you can purchase items that you may otherwise be unable to buy and can very quickly mount up.

Types of Credit Card Debt

There are two main types of credit card that, if not used wisely, can turn your credit card debt into problem debt:


Standard Credit Cards
It’s the most common type of credit card issued by a bank or building society. The credit card lender will issue you with a physical credit card and a spending limit. Some may give you an interest-free period, for purchases, balance or money transfers, but once outside this period you will be charged interest monthly. If you are not within an interest-free period and don’t pay off your credit card debt in full each month, you’ll incur additional interest on what you’ve borrowed. If you don’t make your minimum payment you will be charged a fee. Sometimes the amount of interest is almost the same as your minimum payment, so if you only make your minimum payment each month, your credit card debt may not reduce much each month.


Store cards
Working similarly to a credit card, a store card will allow you to purchase items from a specific store or chain of stores using the credit limit that they have given you. Most store cards will charge you a monthly interest rate and all will impose charges if your purchase is not paid off within the given timeframe.

What happens If I Can’t Pay My Credit Card Debt?

If you miss monthly payments on your credit card debt, your lender will begin proceedings to recover the debt in the following ways:

  1. Initially, the lender will contact you by telephone, letter or email regarding your credit card debt. They will contact you over the first few months and you will need to make their requested minimum payment to prevent them from taking further action.
  2. If after multiple attempts to contact you, you haven’t repaid the owed amount, your credit card company will default your account and possibly cancel your credit card.
  3. If you don’t pay after the above steps have been taken to recover your credit card debt, your debt may be passed to a debt collection agency.

How Can I Pay My Credit Card Debt?

The quickest and easiest way to pay off credit card debt is to stay in control of your spending habits. Here are a few tips to help you avoid your credit card debt becoming a problem:

  • Set aside enough money each month to pay back what you have spent on your credit card.
  • Set up a direct debit or standing order so that if possible you repay the balance in full, but where you cannot, that you will always pay the minimum payment.
  • Where you are unable to pay the balance in full, each month you make an additional payment of whatever amount you can afford.
  • Use comparison sites to find balance transfer credit cards with lower or zero interest rate deals so that you can pay off more of your balance each month and pay it off over a shorter period.

I Need Help Paying My Credit Card Debt

If you are struggling with credit card debt or have been contacted by debt collectors on behalf of your credit card company, contact Debt Movement today and speak with one of our friendly and professional guides who can provide support and help you on your journey to becoming financially free.