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Default notices, missed payments and your credit file

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You may get a default notice or 'notice of default' if you miss or do not make agreed payments. This is recorded in your credit file and can affect your credit rating.

An account defaults when you break the terms of your agreement.

The people you owe money to may cancel your contract if they think you cannot get back on track.

A debt can only default once, but afterwards creditors can take further action to collect it.

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Are debts causing you stress? Do you feel you never have the time?

Whatever the barrier, let’s deal with it together.

What is a default notice?

A default notice is a letter the people you owe send to warn that you are behind on payments and your account may default.

The people you owe usually send this after six months of missed or reduced payments. They give you at least two weeks to make up missed payments. Your account defaults if you cannot pay in this time.

Default notices apply to debts regulated by the Consumer Credit Act, like:


  • Credit and store cards
  • Payday loans
  • Personal loans
  • Hire purchases

Does a default notice affect your credit rating?

A default notice does not affect your credit file, but the account defaulting does.

Your credit file will show that you did not make your agreed payments. This impacts your credit score.

Creditors may think the default makes you high risk to not pay them back. This makes it harder to get:


  • New loans
  • A new credit card
  • A new mortgage
  • Certain bank accounts

Find out more about how debt affects your credit file.

The people you owe must send you a default notice and give you time to act if the debt is regulated by the Consumer Credit Act.

What happens when you get a default notice?

The people you owe ask you to pay the full amount owed instead of instalments. You can ask to pay in affordable instalments, but they may not agree.

After the account defaults, the people you owe can:


We can help if you are worried about missing payments and getting a default notice. We will look at your situation and give you free, personalised advice.

Answer 5 quick questions to find out what you should do next.

Be honest – this will just be between us, and we will not record any of the answers you give.

Do you use credit, loans or an overdraft until your wages or benefits come in?

Have you been making minimum repayments on debts or even missing repayments on them?

Have you received any charges for late payments, or fees for your overdraft recently?

Are you currently using credit cards to cover your repayments?

Have you been using credit to pay your household bills? Or have you fallen behind on paying them?

Things are looking pretty good

No need to worry, things are looking pretty good

From what you have told us, you do not have a debt problem.

Make sure you keep on top of your money. You can use ourbudgeting guidesto get started. This will help if you are falling behind with payments.

If you′re worried about money, don′t wait to come back to us forfree and impartial debt advice. We are here to help you whenever you need us.

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You should act now to avoid bigger problems later

From what you have told us, you may have a debt problem. No need to worry, there is a lot you can do. And taking action now means you start to sort it out quicker.

You can get debt advice online at any time. We will not share your details with anyone.

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Or, if you are not ready to get help right now, use ourbudgeting guides.

It looks like you need help with your debts

From what you have told us, your debt has become a problem. You may be worried about this, but we can help you.

Get debt advice online at any time. We will not share your details with anyone.

We will help you to create a budget. This will show you how much you can afford to pay towards your debts. We will also help you deal with the people you owe. And we will recommend ways to start to sort out your debt.

We are here for you online 24/7. If you need to stop and come back later, that is fine.

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You need help with your debts

From what you have told us, your debt sounds a big problem. You are probably worried about this. We can help you.

Get debt advice online now. You can switch to the phone if you want to talk with someone. Either way, we will not share your details with anyone.

We will help you to create a budget, which will show you how much you can afford to pay towards your debts. We will also help you deal with the people you owe money to. And we recommend ways to start to sort out your debt.

We are here for you online 24/7. If you need to stop and come back later, that is fine.

Get debt help now

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