Persistent Debt

What is persistent debt?

If you've paid more interest and charges than you've paid off the amount you borrowed over an 18 month period, this is considered persistent debt by the Financial Conduct Authority.

What do I need to do if my account is in persistent debt?

Can you afford to pay more?

Increasing the amount you pay could help you save money and clear your balance sooner to prevent long term debt.

Make extra payments when you can

Making extra payments where possible will help to clear your balance sooner.

Get in touch

If you think that increasing your payments could be a struggle for you, please let us know and we'll do what we can to help.

FAQs

How will I know if my account’s in persistent debt?

If you’re in persistent debt we’ll get in touch by letter or email to let you know and advise you of what actions you can take to help improve your situation.

I’ve received a letter or email from you saying I’m in persistent debt – have I done something wrong?

No, you haven’t done anything wrong – lots of customers making minimum or low repayments have been sent a letter or email.

What do I need to do if my account is in persistent debt?

We suggest you look at your finances to see if you can afford to increase the amount you pay each month. You could also try to make extra payments where possible. Taking these actions will clear your balance sooner and may reduce the cost of borrowing.

Do I have to pay my full balance in 18 months?

No, we’re not asking you to pay off your balance. You just need to pay more of the amount you’ve borrowed compared to the amount of interest and charges.

What if I don't increase my payments?

We'll regularly review your account and we'll contact you again if we find that your position has not changed. To prevent you from getting into further debt, we may have to suspend your account. If this happens you won't be able to shop on your account until we've agreed an appropriate plan for you to repay your outstanding balance. We may also make the credit reference agencies aware of your circumstances.

Can I just pay my minimum payment?

Yes, you can still pay just your minimum payment if money is tight one month. However, we would recommend increasing the amount you pay each month to help improve your situation.

What if I can't afford to increase my payments?

If you think that increasing your payments could be a struggle for you, please let us know and we'll do what we can to help. You can contact us on 0800 092 9042, lines are open Monday - Friday 8am-9pm or Saturday 8am-6pm.

Alternatively, if you're experiencing significant or potentially long-term financial difficulties, it may be beneficial to contact a debt advice service. StepChange Debt Charity offers free, impartial and confidential advice; you can visit their website at www.stepchange.org or contact them on 0800 138 1111.

Delay Payments for 12 months with Buy Now Pay Later when you spend £50 or more

Interest is calculated and compounded daily at a typical rate of 44.9% per annum for the delayed payment period and repayment period and is charged to your account at date of order as a lump sum.

Remember, avoid paying all interest by paying the cash price before the end of the delayed payment period. This can be done in one full payment or multiple partial payments.

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What is Buy Now Pay Later?
Buy Now Pay Later is an interest bearing option that allows you to delay payments on your purchases for up to 12 months. The delayed payment period starts from the date of order (including pre-ordered items and those not ready for immediate dispatch).

You can choose:
A delayed payment period of 12 months and then a repayment period of 104 weeks when you spend £50 or more.
A delayed payment period of 12 months and then a repayment period of 156 weeks when you spend £99 or more.

How interest is calculated?
Interest will be charged for the delayed payment period and the chosen repayment period.

Interest is calculated and compounded daily at a typical rate of 44.9% per annum for the delayed payment period and repayment period and is charged to your account at date of order as a lump sum. This calculation factors in the planned payments that are requested during the repayment period. Your interest rate is personal to you and will be detailed in checkout.

How to avoid paying interest?
You can avoid paying all interest for both periods by paying the cash price before the end of the delayed payment period. This can be done in one full payment or multiple partial payments.

Making partial payments may result in a portion of the lump sum of compound interest being refunded at the end of the delayed payment period.

Remember if you choose not to pay the full cash price before the end of the delayed payment period any outstanding balance plus the lump sum of compound interest applied at the date of order will become payable.

How do I make a Buy Now Pay Later payment?
To make a full or partial payment simply log into My Account, choose "Make a payment", select "Pay Buy Now Pay Later" and allocate your payment to the specific item(s) you wish to pay off. Alternatively, you can call us.

What happens after the delayed payment period?
If you have not made any payments towards your Buy Now Pay Later, the outstanding balance plus the lump sum of compound interest will be payable across your chosen repayment period. This will now be included in your account minimum payment request each month.

If you have made partial payments, but not cleared the full cash price before the end of the delayed payment period, the outstanding balance plus a reduced lump sum of compound interest will become payable. The repayment amount agreed for the repayment period will remain the same, meaning the repayment period may be shorter than originally agreed.
If you have paid the cash price in full before the end of the delayed payment period, you will not pay any interest.

What is excluded from Buy Now Pay Later?
The costs for delivery, installation services and any warranty and insurance products cannot be placed on Buy Now Pay Later. Buy Now Pay Later availability is subject to your credit and account status.

Do I still have to pay my minimum payment?
Yes, allocating payments to Buy Now Pay Later will not cover the minimum payment for your Littlewoods account. If you have a non-Buy Now Pay Later balance on your Littlewoods account, you will still need to make at least your minimum payment as shown on your statement.