You can use a clear credit card debt loophole to make your credit card debts more manageable. Here we will look at not one, but two, legal loopholes to clear your credit card debts in the UK. 

The average credit card debt in the UK is above £2,000 right now. And if you are one of these debtors, it’s time to explore some legal loopholes.

The Clear Credit Card Debt Loophole

There is one loophole to assist you in clearing credit card debts in the UK, and it works through what is known as a balance transfer credit card. 

If you have a credit card debt, you might be able to open a special type of credit card that allows you to transfer the outstanding balance of your other credit card – or credit cards – to the new card.

If you have more than one credit card debt, this would be classed as credit card consolidation.

You should only transfer the credit card debt to the new card if the new card has better repayment terms.

For example, the new card might have a lower rate of interest and/or a grace period at the beginning where you pay no interest at all.

To simplify, you clear the debt on your existing credit card but then open a new credit card with a new debt that works in your favour.

Find your best debt solution

This 4 question debt calculator will tell you if you’re eligible.

What is the total amount of your debt?

What Are the Possible Pitfalls?

When you are looking for a balance transfer credit card, always make sure that the credit card will allow transfers from your existing credit card and to the amount you need to transfer.

You should also look out for balance transfer fees, which are typically around 2% of the money you need to transfer.

So, if you wanted to transfer a debt of £1,000 to the new credit card, a balance transfer fee of 2% would mean having to pay a fee of £20. The fee differs between credit card providers. 

Last but by no means least, never apply for multiple balance transfer cards at once. This will harm your credit file and prevent you from getting accepted with any of them. Moreover, you might get accepted more than once and have a different kind of problem. 

Can Anyone Use a Balance Transfer Card?

Not everyone can use this credit card loophole because some people have a bad credit rating and won’t get accepted for the new credit card.

If you are unable to get a balance transfer credit card, you should consider other debt solutions.

Or you could consider clearing your debt with another credit card loophole. Read on to learn more…

The Other Loophole to Clear Credit Card Debt

There is one other way you can clear your credit card debt. If your credit card debts are over six years old and tick a couple of other boxes, you can use a legal loophole to avoid having to pay.

The legal loophole to clear credit card debt we are referring to is officially known as Statute Barred. 

What Is Statute Barred Debt?

A Statute Barred debt is a debt that cannot be discussed in court. When a credit card company wants you to pay and you refuse or simply can’t, they may take you to court and get a judge to force you to pay with what is known as a County Court Judgement (CCJ).

A CCJ also opens up the possibility of the credit card company chasing you with bailiffs.

However, Statute Barred debts are older debts that cannot go to court, meaning none of the above can happen and nobody can ever force you to pay your credit card debts.

What Qualifies as Statute Barred Debt?

To qualify your debt as Statute Barred, your debt must be at least six years old. But there are some other conditions as well, namely:

  1. The credit card debt must not have been issued with a CCJ before. A CCJ lasts for a lifetime so you will be forced to pay.
  2. You must not have acknowledged that you owe the debt in writing within the last six years
  3. You must not have made a repayment in the last six years

If you did either of numbers 2 or 3 above, the clock resets and you would have to wait for another six years before the debt becomes Statute Barred.

My Credit Card Debt Is Statute Barred, What Now?

If you believe your credit card debt is Statute Barred, you should seek confirmation of this first. To do this, it is best to talk to UK debt charities or speak with Citizens Advice.

These people will assess your situation and explain if your debt is Statute Barred or not.

If it is Statute Barred, you can write to the credit card company telling them it is so and they should never contact you again or it will be seen as harassment. You can find templates of what to put in your letter on the same debt charities. 

Find your best debt solution

This 4 question debt calculator will tell you if you’re eligible.

What is the total amount of your debt?

Should I Just Wait Six Years to Wipe My Credit Card Debts?

Waiting for six years to use this credit card debt loophole is not a good idea, unless you are close to the six-year mark already. By avoiding debt notification, you could end up in court with much bigger debts. 

In these cases, it is better to look for debt solutions to pay off your credit cards.

Where Can I Find Credit Card Debt Solution Help?

For information on ways to clear credit card debt with real solutions, check out the Money Nerd debt solutions page. We explain everything in simple language without trying to confuse you!

And don’t forget to take advantage of free debt advice from debt charities.

About the author

Scott Nelson

Scott Nelson is a financial services expert, with over 10 years’ experience in the industry, including 6 years in FCA regulated companies. Read more
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