Featured in...
Dashboard
Debt Info
Write Off Debt

How to Write Off Credit Card Debt? Quick Guide

Scott Nelson MoneyNerd Janine Marsh MoneyNerd
By
Scott
Scott Nelson MoneyNerd

Scott Nelson

Debt Expert

Scott Nelson is a renowned debt expert who supports people in debt with debt management and debt solution resources.

Learn more about Scott
&
Janine
Janine Marsh MoneyNerd

Janine Marsh

Financial Expert

Janine is a financial expert who supports individuals with debt management, cost-saving resources, and navigating parking tickets.

Learn more about Janine
· Jun 21st, 2024
Could you legally write off some debt? Answer below to get started.

Total amount of debt?

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Featured in...
Write Off Credit Card Debt

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Is paying your credit card debt causing you to worry? You are not alone – every month, over 170,000 people seek our guidance to find solutions for their debts.

In this easy guide, we’ll share clear and simple advice on:

  • The legal ways to write off credit card debt in the UK.
  • Steps to follow when you can’t pay your debt in full.
  • Tips on how to pay off part of your debt.
  • Choosing the best method to write off your debt.
  • Other options if you’re struggling with unaffordable debt.

We understand how stressful dealing with debt can be. Whether it’s about writing off your debt in full or in part, we’re here to guide you through your options. We’ll explain how debt write-off works and help you understand when you might be able to write off some of your debt. Our aim is to help you make the right choices, so you can start to feel better about your money.

Let’s dive in.

Could you legally write off some debt?

There are several debt solutions in the UK, choosing the right one for you could write off some of your unaffordable debt, but the wrong one may be expensive and drawn out.

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

Is a Write Off Possible?

There are three ways you can legally write off credit card debt. And there are some other methods to write off some of your credit card debt. 

We’ll break these down for you here.

How to Write Off Credit Card Debt (In Full!)

  1. Statute Barred 

Statute Barred is a legal loophole that allows you to write off older unsecured debts. If your credit card debt is six years old or more, and you have never received a CCJ to pay, or have not made a payment in the last six years, you will probably qualify.

The loophole blocks the credit card company from starting legal proceedings to force you to pay. And the bottom line is that without going to court, the credit card company can never make you pay or employ bailiffs to get the money.

The courts are simply too overwhelmed to be discussing old debts, which helps you not have to pay. Although the debt is not officially written off, the end result is the same.

  1. Debt Relief Order

If your credit card debts are less than £30,000, you don’t own a property and you have less than £75 of disposable income each month after paying your necessities (rent, bills, groceries etc.), then you might want to use a Debt Relief Order.

A Debt Relief Order is a formal debt solution which would stop your credit card companies requesting payment for a full year. If your financial situation doesn’t improve by the end of this year then all your debts will be wiped. 

However, there are implications of choosing a Debt Relief Order. You can read all about them in this DRO guide

  1. Bankruptcy

Bankruptcy is the even more serious option than a Debt Relief Order. Declaring yourself bankrupt will prevent you from having to pay off your credit card debts, but it will have significant consequences. You might struggle to get basic agreements like mobile phone contracts in the future and it will hinder you in many instances.

But it can also be the right decision. Learn more about Bankruptcy and when it is a smart choice in our simple bankruptcy explanation.

» TAKE ACTION NOW: Fill out the short debt form

How to Write Off Part of the Debt

There are also ways to write off part of your credit card debt providing you commit to paying the rest of the debt instantly or over time. We’re referring to a debt settlement offer and an Individual Voluntary Arrangement, respectively.

  1. Debt Settlement Offer

A debt settlement offer is an offer to pay a lump sum of the debt providing the creditor – in this case, a credit card company or bank – will write off the percentage of the debt you don’t pay. It is usually used by people who have most of the money but not quite all of it, or by debtors who are gradually paying off the debt and come into some money via an inheritance or a new job.

For example, you might owe a credit card company £2,000 and they have started asking for full payment or will take legal action. In this instance, if the debt is not Statute Barred you are likely to two smart options. You should either pay off the debt in full or use a debt solution to gradually pay it off.

The lesser-known third option is a debt settlement offer to pay off around 75% (£1,500) of the debt and ask for the remaining amount of debt to be written off. Some credit card companies will agree just so they access a lot of the money quickly and don’t have to enter into a monthly repayment schedule with you.

  1. Individual Voluntary Arrangement 

But not all monthly repayment schedules mean you can’t write off any debt. An Individual Voluntary Arrangement is a legally-binding monthly repayment plan you may be able to use to pay off multiple credit cards.

It is for people in a lot of debt but also people who still have jobs to make much bigger repayments. Debts usually total over £15,000 and monthly repayments are at least £100 for six years. 

But once the six-year period ends, all remaining debt is wiped off. Some people use an Individual Voluntary Arrangement for their credit card debts and manage to wipe up to 85% of the total money owed.

How a debt solution could help

Some debt solutions can:

  1. Stop nasty calls from creditors
  2. Freeze interest and charges
  3. Reduce your monthly payments

A few debt solutions can even result in writing off some of your debt.

Here’s an example:


Situation

Monthly income £2,504
Monthly expenses £2,345
Total debt £32,049

Monthly debt repayments

Before £587
After £158

£429 reduction in monthly payments

If you want to learn what debt solutions are available to you, click the button below to get started.

Get started

Which Method Should I Choose?

There is no way of anyone telling you which method is the best one without knowing your exact situation, which includes your income, expenses and total debt. It is best to gather this information and seek free debt advice to know what move to make.

UK debt charities can provide this to everyone for free.

Thousands have already tackled their debt

Every day our partners, The Debt Advice Service, help people find out whether they can lower their repayments and finally tackle or write off some of their debt.

Natasha

I’d recommend this firm to anyone struggling with debt – my mind has been put to rest, all is getting sorted.

Get started

Reviews shown are for The Debt Advice Service.

What Are the Other Options?

Other debt solutions can get you out of credit card debt, despite not wiping any of the debt away. Debt charities will also be able to identify these options for you.

Moreover, if you haven’t yet entered into credit card debt but think it is coming, you might be suitable for credit card consolidation. This is an early strategy to prevent your credit card debts spiralling out of control.

Read more about credit card debt consolidation now!

Learn More About Credit Card Debts, Here!

If you want more useful information to clear credit card debts, stay tuned to MoneyNerd!

Could you legally write off some debt?

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

Did you like this article?
Show your support ❤️
We're glad you liked the article! As a small team, your support means everything to us. If you could rate us on Google, it would be amazing. Thank you!
We are so sorry...

Is there something missing? We’re all ears and eager to improve. Send us a message and let us know how we can make our article more useful for you.

You can email us directly at [email protected] to share your feedback.

The authors
Scott Nelson MoneyNerd
Author
Scott Nelson is a renowned debt expert who supports people in debt with debt management and debt solution resources.
Janine Marsh MoneyNerd
Debt Expert
Janine is a financial expert who supports individuals with debt management, cost-saving resources, and navigating parking tickets.