What is a default notice?

A default notice is usually sent after payments have been missed over time.

It means:

• you’ve fallen behind on your agreed payments
• the creditor is considering further action
• you’ve been given a chance to put things right

If you don’t deal with the notice in time, the creditor may:

• close your account
• add a default to your credit file
• pass the debt to another company to chase
• take court action in some cases

These steps don’t all happen at once, but ignoring the notice makes further action more likely.

If your account defaults, it will usually stay on your credit file for up to six years.

It may make it harder to:

• get credit cards or loans
• access mortgages or car finance
• get competitive interest rates

Acting early can help you stay in control of what happens next.

1. Read the notice carefully

Make sure you understand what’s being asked and the deadline you’ve been given.

2. Check what you can afford

Look at your finances and work out whether you can catch up or make a reduced payment.

3. Speak to your creditor

Contact them as soon as you can.

You may be able to:

• explain your situation
• ask for more time
• agree a more affordable payment

If you can clear the missed payments within the time given, you may be able to avoid a default being added to your credit file.

4. Get support

Acting early can make a real difference here.

We’ll help you understand what’s realistic for your situation, speak to your creditors if needed and put a plan in place that helps you stay on track.

It’s about getting control back now, before things build into something harder to manage.

Debt solutions may affect your credit rating. Fees may apply depending on the solution. Individual circumstances vary.