Arrears

If you miss a payment on a bill or loan, the unpaid amount is known as arrears. The total grows with each payment you miss, and the creditorHow to Deal with Creditors: Communication and NegotiationPractical advice on communicating with creditors, negotiating affordable repayments, and understanding your rights when dealing with the companies you owe.Read more → may add interest or charges. How serious arrears are depends on the type of debt: arrears on a priority debtPriority and Non-Priority Debts ExplainedLearn which UK debts are priority debts, such as rent, council tax and energy bills, which are non-priority, and why the difference matters.Read more → such as rent, a mortgage or council tax can lead to court action or the loss of your home, while arrears on a credit cardHow Credit Cards Work in the UKHow UK credit cards work: interest, APR, minimum payments, interest-free periods, fees, Section 75 protection and how to use a card without getting into debt.Read more → are usually less urgent.

The most important step is to contact the creditor early and get free advice. Many creditors will agree a repayment plan for arrears if you explain your situation honestly and offer an amount you can afford.