If you do not keep up to date with your utility bills, the supplier may take action to remove the facility. It is important to pay for your utilities as you need them for day-to-day living, for example, light and heating.

The action depends on the type of service provided:

• TV licence arrears – it is a legal requirement to have a licence if you are using a television. If you do not pay, you risk prosecution and a criminal fine of up to £1000
• Gas and electric arrears – Your supplier can get a court warrant to enter your home fit a pre-payment meter. This means you must pay the arrears at set weekly amount or lose supply. They may also remove the meter and cut off your supply. The creditor will then try to collect the debt you owe using a debt collection agency
• Telephone, internet or satellite / cable television arrears - The service provider may reduce or cut you off altogether. If you signed a contract for a fixed period, you may have to pay for the remaining months included under the agreement. The creditor may also pass the debt onto a collection agency or they use the court to force you to pay

If you have arrears on any utility bills, you should speak to the provider first and ask them for a payment plan. Some providers may offer extra help to those in financial hardship.

You can use credit to pay for services such as mobile phones, gym membership or internet subscriptions. To receive the service you sign a contract to use it for a fixed period, often a year. You usually pay in monthly instalments by direct debit.

The company will cancel the use of the service if you fail to pay. You will have to pay any missed payments as well as the rest of the payments due until the end of the contract.

If you cannot pay the debt, the creditor will follow their own collection process, and it is common practice to sell this type of debt to collection agencies.