“I’m Paying £100 a Month… and Reducing My Debt by Just £30”

How a Minister Escaped the Trap of Persistent Credit Card Debt

That quote came from a minister back in 2019, reaching out to us at Churches Mutual with a plea for help. At first, it sounded like a case of predatory lending - but the real source of stress was far more common and insidious: a high-street credit card.

Over the years, the card had been used for essential life events - two house moves and the arrival of a second child. The plan was always to pay it off quickly. But as life became more expensive and repayments harder to manage, the balance grew - along with the credit limit.

By the time he contacted us, the card had a balance of £2,950, just shy of its £3,000 limit, with an APR of 18.2%. On top of this, he had a £3,500 personal loan and a £1,000 overdraft costing £2.20 per day.

The minister and his wife had created a budget. They’d committed to paying £100 per month towards the credit card. But there was a problem: the minimum payment required by the lender was £146.

That meant:

• His £100 was marked as an underpayment, triggering a £12 penalty each month.
• He was also being charged £58 interest.
• So in reality, only £30 of his monthly payment actually went towards reducing the debt

Even worse, because their budget was so tight, they often had to use the available £30 on the card again - for essentials like fuel and groceries. It was a vicious cycle.

“If we could manage not to use the card, it would still take around £9,000 and almost eight years to clear it.”

And that was with an 18.2% interest rate -  which, at the time, was below average. Today, average credit card rates have climbed to 26.72% (March 2025).

Without intervention, this family could still be battling credit card interest today -  and the emotional toll that comes with it.

Need to Break Free from Unmanageable Debt?

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