What Happens When You Don’t Pay Your Bills?
A single missed monthly payment might not seem serious but the consequences can be a lot more severe than you would first think. They probably won’t send the bailiffs round and if you make it up, the lender probably won’t say anything but it can leave a lasting impression on your credit rating. Five and a half million of us missed a payment in the UK last year and may not grasp the effect that it could have.
It could be for a utility bill, a loan repayment, your mobile phone contract or your credit card but no matter what it was for, no matter how insignificant you thought it was, the impact it could have on your credit score could be serious.
A poor credit rating will affect your ability to secure credit, either preventing you altogether or costing you a lot more in rates. Maintaining a healthy credit rating is important and there are a number of ways to go about this. There is more information about how to look after your credit report available from www.debtsolver.co.uk but making your payments on time is a big part of it. A direct debit that will cover the minimum monthly payment will help to ensure that you pay on time, which is particularly important with credit cards.
However, it is worth remembering that the minimum payment is seldom enough to tackle the debt. If you transfer your balance to a card that offers a 0% rate of interest, all of your payments will go towards paying the balance back but often the best rates are reserved for those with the best credit rating. So, missed payments could have an impact on the deals you’re offered.
There are sites that allow you to compare the deals on the market and see which ones your credit profile qualify you for. Repairing your credit rating should be a priority and information on how to go about this is available from Debtsolver. There are also various debt solutions on the market in the UK and Debtsolver will be able to take you through these too, helping you to find the best one for someone in your situation.
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