The Financial Conduct Authority (FCA) has published proposals that could mean credit card companies cancelling any interest or charges in extreme cases.
Firms would have to work more closely with people in debt, such as drawing up a faster repayment plan.
One debt charity said the plans failed to deal with credit cards becoming dangerous, long-term debt.
The UK Cards Association, which represents credit card companies, said that the plans required "careful consideration".
The regulator defines someone as being in credit card debt if they have paid more in interest and charges than they have repaid of their borrowing over an 18-month period.
The FCA says that "customers in persistent debt are profitable for credit card firms, who do not routinely intervene to help them". It estimates that 3.3 million people are in persistent debt.
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