Contract debt. What happens if you do not pay your bill

You often enter into a contract for a “minimum period” when you sign up for services like a gym, mobile phone or TV package. This means you must pay the rest of the contract if you fall behind with payments or cancel the service early.

Your account goes into arrears if you stop paying and you lose access to the service.

If you do not take steps to pay it back:

• Your account defaults and
• The normal collections process starts

Need help with debts?

What do I do if I cannot afford my contract?

Contact the provider as soon as you can if you are struggling to pay your contract.

Your options may include:

• Arranging a payment plan to pay off what you owe
• Reducing the payment
• Spreading arrears over the rest of your contract

Cancelling your contract

What happens when you cancel your contract depends on the terms you signed.

For example:

• There may be a notice period
• They may charge a cancellation fee

Double check your contract to find out.

Get get expert advice for support if you are struggling with payments.