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Contract Debt: What Happens If I Don’t Pay My Contract?

For service that you sign up such as gym membership, phone contracts, or TV services, the contract you signed usually offers a minimum period. So, if you are behind your payments or you’ve terminated the service before your contract ends, you are obliged to pay the rest of the contract.

If you don’t pay your contract, your account will be on arrears and you’ll end up losing access to the service offered. Moreover, your account will default and your debt will be treated the same as the collection process of unsecured debts.

What Should I Do If I Can’t Afford Paying My Contract?

When you are barely coping up with paying your contract, or if you fall behind payments, you must reach out to your service provider and make some arrangements. You may offer a certain amount you can afford or come to an agreement on how you can settle your debs.

Besides, your provider might consider reducing your payment while altering the duration of your payment terms. However, this will depend on the terms and conditions stipulated in your contract. Aside from reducing payments, your provider might also spread payments or any delays over the remaining terms of your contract.

If you can no longer cancel your contract, do not panic. We are happy to give your debt advice on how you can deal with your arrears. With our finance experts, helping you to come up with the best debt management plan, it is possible to get rid of your debt in no time.  Should you wish to speak via phone, call us on 0800 193 1024.