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Millions across the UK are feeling the pressure, especially those with credit products, according to the Financial Conduct Authority’s (FCA) Financial Lives survey.[1]

Many people are facing issues with their finances, and one in ten people with a credit product are struggling to pay their bills and other essential expenses.[2]

What happens when you miss your credit repayments?

When you miss a repayment, it’s likely that your lender will try to contact you to find our why you haven’t made a payment.

Here’s what can happen:

  • Your credit rating can be damaged.
  • Missed payments and defaults can be added to your credit file for up to six years.
  • You might still be approved for credit, but the terms may not help you, with higher interest rates or unaffordable repayments.

This was the case for 27% of the people who said they were offered credit at a price or with terms they felt were utterly unreasonable due to their existing debts.2

Accepting these unaffordable credit repayments can end up leading to persistent credit card debt, where you start paying more on interest, fees and charges than the actual balance.

How else are people struggling with credit?[2] 

The report also that:

  • 7% were missing repayments.
  • 10% stated that their credit rating was affected
  • 7% incurred bank charges
  • 4% were unable to pay back what they owed
  • 4% weren’t allowed access to further credit
  • 8 million people were in persistent credit card debt

How easy is it to get into debt?[3]

In 2024, 9.5 million adults were over-indebted, which means they were at least one of the following:

  • In financial difficulty – missed domestic bills or credit payments for three or more months
  • Heavily burdened – found it a heavy burden to keep up with their bills or credit repayments

Over-indebted adults were twice as likely to be overdrawn and carry a credit card balance.

In May 2024, at least 10% had fallen behind on or missed payments on their credit commitments or domestic bills in the last six months.

What to do if you’re struggling with your repayments?

If you’re struggling with your repayments on any of your credit accounts, you can try and ease the situation by trying to:

  • Speak to your lender – see if you can come up with an affordable repayment plan
  • Try and change spending habits – use BudgetSmart to see if there is anything you can cut back on, or maybe get a better deal
  • Check your benefits entitlement – use our benefits calculator to check if you’re receiving all the benefits you’re entitled to
  • Get free debt advice – whether you’ve already missed payments or things are just starting to feel unmanageable, we’re here to help.

Take the first step to get help

If you’re struggling with your bills or are feeling like things are getting out of hand, you don’t have to go through it alone. We’re here to listen, support you and help you find the best way forward.

Call us on 0800 813 1833, chat with us via Live Chat, or fill out our form to connect with us on WhatsApp.

For more help managing your money day-to-day, check out BudgetSmart – it’s full of practical tips to help you stay in control all year round.

[1] https://www.fca.org.uk/financial-lives

[2] https://www.fca.org.uk/publication/financial-lives/fls-2024-credit-loans.pdf

[3] https://www.fca.org.uk/publication/financial-lives/fls-2024-forbearance-debt-advice.pdf