Late Payments Causing Bad Credit Rating
Paying monthly bills was a struggle for over eight million Brits last year, causing bad credit ratings for late payments, research shows.
Credit card bills were the most likely to be either forgotten or ignored in 2010, as almost four million British adults admitted to missing a repayment.
The study by Moneysupermarket revealed 17 percent of adults failed to pay at least one bill over the last year, highlighting how the nation is struggling to manage their finances.
The biggest offenders of missing credit card bills were those living in London, with 11 percent admitting they had done this recently, compared to only two percent of borrowers from Northern Ireland.
“There is still a huge section of the UK population seriously damaging their credit profiles by missing payments,” said Kevin Mountford, Moneysupermarket head of banking.
“If you are finding it difficult to meet your monthly obligations, then sit down and go through all your finances and see where you can make suitable savings.”
Council tax, electricity and mobile phone bills were also high up the list of bills that were missed or ignored last year, as 1.5 million failed to pay at least one of these.
Although household bills are not usually recorded on a consumer’s credit record, mobile phone and broadband payments will be recorded, and if a person defaults on the agreement this could affect a consumer’s ability to gain credit in the future.
Brits Need to Learn Money Management Skills
Research by Learndirect recently showed Brits get themselves into debt due to an inability to understand basic budgeting habits, and the details of the small print on financial products.
A third of respondents in the study admitted they do not have the right skills to successfully manage their finances, while two thirds feel confused with how to make the best financial choices.