This, Could Be The, Mr Willey Claimed First Step For Many People In Protecting Their Credit File

Category: Finance, Credit.

Missing payments on loans, credit cards and other sources of financial demand could be place many consumers under more financial pressure than they originally think, new research shows. Indeed, this was shown to have outstripped loans, mobile phones, electricity bills, satellite television and internet debts combined.

Findings from moneysupermarket reveal that about 5 million were not able to meet a demand on their spending over the course of 200Overall, credit card repayments were indicated as being the most likely bills to be missed, accounting for seven per cent. However, by failing to make payments on any one of these areas was suggested as potentially doing damage to their credit report. Research from the price comparison website also indicated that people over the age of 25 are the most likely to miss credit card bills. Such damage to a financial file could well mean that consumers see that their access to cheap loans and other types of low- rate borrowing is reduced. In particular it was suggested that 25 to 34- year- olds will not be able to not meet such demands on their spending, with 12 per cent of people from this age group failing to so. Commenting on the study, head of credit, Steve Willey cards for moneysupermarket, said: "Close to three million credit card holders will have paid out over 35 million pounds between them in penalty fees. Meanwhile, some five per cent of 18 to 24- year- olds have missed payments on mobile phone bills, the highest proportion out of all Britons.

But it is the damage to their credit rating that is more costly to them and to the other 5 million consumers who have missed payments elsewhere. He suggested that by making sure they are able to make repayments, consumers may be more likely to secure access to cheap loans and other forms of competitively- priced borrowing in the future. Consumers may feel by missing a payment they re saving a few pounds but in the long run, missing the occasional payment will affect your credit rating as lenders assess your overall ability to repay on a regular basis. Mr Willey added: "It s vital consumers do everything they can to protect their credit rating and this means keeping payments up to date. He stated that by setting up a direct debit system, consumers may find that they are constantly able to meet demands on their spending. A poor credit score stays with you for a long time and can mean being rejected for credit or being offered a product at a worse rate. " The moneysupermarket head went on to suggest that it is always better for consumers to make the minimum monthly balance on demands for payment on credit cards, loans and bills" rather than not pay anything at all" .

This, could be the, Mr Willey claimed first step for many people in protecting their credit file. Such a loan may see borrowers merge numerous constraints on finances into a single low- rate loan. For people worried that they will be unable to manage various demands on their spending, applying for a debt consolidation loan could provide useful help. Debt consolidation might be of particular help to consumers struggling with their money management in the wake of Christmas. Last month, director for Thomas, James Falla Charles, suggested that the new year is" absolutely the right time" for consumers to get to grips with their finances.