Credit crunch ‘sees rise in missed payments’

Around 11 per cent of those with credit card debt missed month payments in the second half of 2007, according to research by MoneyExpert.com.

The figures amount to over five million people who need debt help, as late payments can result in late payment fees of around £12.

Sean Gardner, chief executive of MoneyExpert.com explains the consequences of not seeking debt advice in time: “The effect of a payment can last as long as three years on your credit file and it will be used by firms to decide whether they’re going to lend you cash and what they’re going to charge.”

It was also noted that there were regional differences, as 15 per cent of credit card holders in London had missed a payment, compared to nine per cent of those living in the north of England.

CallCredit has issued guidelines for those seeking debt management help, with advice such as sorting out finances straight away and creating, and sticking to, a monthly budget.