Immediate effects
Missing a repayment may trigger late fees and contact from the lender. Persistent arrears can lead to default notices and recovery action depending on the product and agreement.
For secured borrowing, continued non-payment can put the secured asset at risk. Always check your agreement and contact the lender early if you are struggling.
Credit-file impact
Missed payments are typically recorded on your credit file and can affect future applications. The longer problems persist, the more serious the impact can become.
If debts feel unmanageable, free independent advice is available from organisations such as MoneyHelper, StepChange, Citizens Advice and National Debtline.