What Happens When You Do Not Pay a Contract?
When you try and pull out of a contract with a minimum period, or miss payments on it, such as when you get a mobile package, gym membership or various online services, there can be various repercussions. It isn’t unusual to be asked to pay the remainder of the initially agreed term.
If your account defaults because you haven’t met the payments, then the routine process of debt collection for an unsecured debt will take place, which will bring all of the usual problems of harming your credit rating, causing stress, and in extreme cases can cause bailiffs or sheriff officers to visit your home.
What Can I Do If I Can’t Afford My Contract?
If you can’t meet your scheduled repayments or if you are in a state of arrears then the most important thing to do is contact your service provider. Make them aware of your situation; whatever problems you might have afterwards will be far less severe than if you just ignore the problem.
Depending on the creditor, you may be able to come to some sort of payment plan to settle the debt, or they might even let you leave the contract altogether without any additional charges. Some service providers may even spread your arrears over the rest of your contract. However, it should be remembered that they do not have to do any of this. Anything they do is only a goodwill gesture; it is not required by law.
If your creditor won’t give you any leeway and you just can’t afford to settle your debt, then it is time to seek out some help and advice. Get in touch now, and our advisers can get an idea of your circumstances and suggest how you should proceed.