Missed credit card and loan payments on the rise

By the Press Association

The Press Assocation

The Press Association is a news wire with a large reporting team. We use it for additional stories on mainstream issues. Views represented do not necessarily reflect those of MoneySavingExpert.com.


26 April 2013

One in five Britons have deliberately skipped a loan repayment in recent years because they cannot afford it, a study suggested today.

Credit reference agency Experian warns this problem, which will drag down people's ability to borrow in future, appears to be on the rise (if you want to improve your credit rating see our credit rating guide).

19% of people surveyed say they had missed a payment on purpose in the last six years because they didn't have the funds.

Missed payments will show up on a borrower's credit records for six years before the slate is wiped clean, making it tougher for them to take on more borrowing.

These payments were missed on various types of borrowing, including personal loans, overdrafts, credit cards and store cards.

Related MSE Guides

Credit Rating

How it works and how to improve it

Best Bank Accounts

�125 bonus or up to 3% interest

Top Savings Accounts

3% easy access, up to 3% fixed

The report shows 14% of those surveyed say they only ever make the minimum repayments, leading to them paying back a much higher amount due to interest.

Just making minimum repayments can also affect someone's ability to borrow more cash in some cases, as lenders may assume that the borrower is struggling to clear their debts.

Comment/Discuss

Discuss this MSE news story: Missed payments

Cheap Travel Money

Find the best online rate for holiday cash with MSE's TravelMoneyMax.

Find the best online rate for your holiday cash with MoneySavingExpert's TravelMoneyMax.