Credit and debt news
January sees millions of late bill payments
6 February, 2007
Last month saw over a million bills go unpaid at the hands of British consumers after the nation indulged in extravagant festive spending sprees
These bills, ranging from credit cards and mobile phones to utilities and council tax, are highly unlikely to be paid by the end of February either, with most suffering from the further fines that go hand in hand with another missed payment.
Credit card bills are the worst with around 332,500 people failing to pay their dues in the weeks after Christmas, although council tax bills are also under threat as around 147,800 could face court action after they overlooked their January bill.
Almost one in ten adults admit that they have missed at least one credit card payment within the last twelve months, incurring an individual charge of £12 – a penalty which amounts to around £47.8 million in fees nationwide.
Sean Gardner, chief executive of MoneyExpert.com commented: “Missing a bill might not seem like a big deal but it won’t go away and often you’ll be charged with a fee or extra interest if you don’t pay up – if you’ve overlooked a payment, don’t hang around or you’ll pay for it in inconvenience, cost and pure frustration.”
It is also worth remembering that all your debts have a bearing on your credit report, especially when you are seeking to obtain a financial product which relies on a particularly good credit score – every missed payment will count for more than just the extra charge you see on the surface.
Gardner goes on: “If you can’t afford to pay all your bills, you might need to consolidate your debts or consider a more affordable repayment plan – tell your bank or service provider if you are struggling.”
Bookmark with:
