Millions of Brits are risking their financial future by missing crucial bill payments, a new report has found.
It has been revealed that one in six British people have missed a payment for at least one bill in the last 12 months.
This could put their financial future in jeopardy as missing payments on bills can damage their credit profile, which could prove costly when it comes to accessing a loan or mortgage.
The research found that credit cards are the most common missed payment, with 6% of the population – some 3 million people – delaying plastic payment.
Council tax was the second most common missed payment with 2 million people missing at least one council tax bill in the last year.
These were followed by mobile phone bills and electricity payments, with 3% of the population missing at least one of these.
“With times being so tough for most UK households and spare cash being tight it is easy to see why people may have difficulty in paying bills on time, or in some cases at all,” said Kevin Mountford, head of banking at MoneySupermarket.com, which carried out the research.
“However, while delaying payment on some types of bills won’t impede your credit report, being late on others can have a major impact on your financial future, with credit cards being the most missed payment according to our research.”
The research shows that many people are aware of the dangers of missing certain bill payments, with more than a fifth of Brits saying they are concerned about what it will do to their credit rating.
“It is important that people are clear on what could damage their credit profile to make sure they don’t get caught out simply by not knowing,” added Mr Mountford.
“Although it was credit reporting that was traditionally used by the banks and building societies, we are now also seeing a number of utility companies reporting all or some elements of repayment histories.”
If you are facing a similar situation, responsible lenders offer unsecured personal loans which are available to give you access to the funds you may require. Of course, no such loan should be taken lightly, and as with any form of borrowing it is important that you are able to meet repayments.