If you fall behind with your payments or go over the limit you are allowed to borrow, you will be charged a fixed penalty by the creditor on top of your normal interest charge.
Your debt can quickly increase if you miss the required payment each month.
A creditor has the right to add charges and interest. All charges that can be added are stated upfront in the terms and conditions of the credit application which you are required to sign to take out credit. If you believe a creditor has added the charges unfairly, you may be able to claim these back.
In most cases, there is nothing you can do to stop interest and charges being added. However, if you make reduced payments over a long period of time, usually several months, most creditors will eventually stop charging interest and adding late payment charges.
Usually, a creditor will stop interest and charges either after they issue a default notice or they pass it onto a debt collection agency, although this does not always happen.
Get free debt help today
If you are having difficulty meeting payments on your debts, we recommend you use our online debt counselling service, CCCS Debt Remedy, which will provide you with anonymous debt advice and recommend the best solution for your situation. Alternatively call our free Helpline on 0800 138 1111.
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