What happens when you don't pay:

If you are having problems repaying any debt the worst thing you could do is not pay.

Details of the consequences of missing payments follow.

Type of debt:	Consequence of not paying:
Rent Arrears	Eviction from the property
University Fees	Eviction from university
Credit Card minimum payment	Bank charges (from £20 a day up to three charges in one calendar month) and in extremes a county court judgements against you.
Electricity, Gas or Phone bill	Supply cut off
TV License	Fines, baliffs or imprisonment
Unsecured debts / Store cards	County court judgements against you.
Hire-purchase agreements	Repossesion of the goods
Mortgage	Property repossession and eviction

A history of missed payments and county court judgements will adversely affect your credit rating, which can make it more difficult to obtain credit in future. Try to manage your finances and ensure that you have sufficiently budgeted in order to repay your creditors.

Its worth checking your credit report periodically to ensure that it is accurate. Also, if you have been the subject of identity theft or fraud then you credit report is likely to show the first sign. Knowing what is on your credit report can avoid any nasty little surprises when applying for credit in future.

If you would like to check your credit report for free, courtesy of Experian, click on the banner below.

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