What is persistent debt?
Persistent debt is when you've paid more in interest and fees than you've paid toward the amount that you've spent on your Zable card.
This usually happens when you’ve been regularly making the minimum payment, or amounts close to it, over a long period of time. This can lead to it taking a long time to pay off your balances and paying more interest than you need to.
What can I do to avoid persistent debt?
Consider increasing your monthly payments – but only if it is affordable for you to do so. This will help you repay the amount you’ve borrowed quicker and save you money on interest. You can increase your monthly payment amount in the Zable App or make regular one-off payments.
If you get a credit limit increase offer and you are paying a fixed amount each month, please check that your repayment amount is high enough for your new credit limit. The Zable App will prompt you to increase your monthly repayments.
Try to minimise how much cash you withdraw from ATMs on your Zable card. These come with a 3% (min £3) fee and can harm your credit rating. We recommend you withdraw cash on your debit card whenever you can. If we notice that you are receiving a high amount of cash withdrawal fees, we may suspend future withdrawals on your Zable card.
What happens if my account is in persistent debt?
We will be in touch and ask you to increase your monthly payments if it is affordable for you. While your account is in persistent debt, you will not be eligible for credit limit increases.
If your account remains in persistent debt for 3 years we will, as a responsible lender, contact you and offer you different ways you can repay your balances sooner. If you don't take up one of these options or get in touch with us, we will unfortunately need to suspend your card.
I cannot afford to increase my repayments
If you are finding payments difficult please contact us in the Zable App. Our team will listen to your situation and help you find an affordable solution which is tailored to your personal circumstances.
There are also independent organisations you are welcome to speak to for free, confidential, and impartial advice:
PayPlan – www.payplan.com or phone 0800 316 1833.
StepChange Debt Charity – www.stepchange.org or phone 0800 138 1111.
The National Debtline – www.nationaldebtline.org or phone 0808 808 4000.
MoneyHelper – www.moneyhelper.org.uk or phone 0800 011 3797.