Millions of UK households missed a payment in 2025

Around 7.7% of UK households reported missing at least one household, loan, or credit card payment in late 2025. That may not sound like much, but it equates to millions of families struggling to keep on top of bills, credit cards, and everyday essentials. With living costs still high, experts warn the number could rise in 2026.

Not every missed payment damages your credit score, but knowing which ones do - and what steps you can take to protect yourself - could save you months or even years of trouble.

1. Not all missed bills damage your credit score - yet

It’s a common myth that missing a bill automatically wrecks your credit score. Household costs like energy, water, council tax, and rent aren’t usually reported monthly to UK credit reference agencies such as Experian, Equifax, or TransUnion.

That means a one-off late payment on these bills doesn’t automatically appear on your credit file. However, if unpaid bills are passed to a debt collection agency or escalate to a County Court Judgment (CCJ), they will show up on your file and can stay there for six years. That’s when a seemingly small late payment becomes a long-term credit issue.

2. Missed payments on credit products hit much harder

Credit products like credit cards, personal loans, mortgages and bank overdrafts are routinely shared with credit reference agencies once payments are about 30 days late.

When a late payment goes on your credit file, it can remain there for up to six years, even if the debt is later cleared. A single missed credit card payment can push your score down, while multiple missed payments can move your rating from “good” to “poor.” This can make it harder to get new credit, increase interest rates, and even affect applications for mortgages or mobile phone contracts.

3. Why rising missed payments matter to everyday people

The fact that millions of households are behind on payments isn’t just a statistic. It shows widespread financial pressure. More missed payments mean lenders tighten borrowing criteria, making it harder and more expensive to access credit.

Data from last year also shows that many households are stretching their budgets to cover costs, dipping into savings, or using credit to make ends meet. This makes managing a good credit score even more important, because one slip can compound the difficulty of borrowing or getting favourable deals later.

4. What you can do if you’re worried about your credit score

If you think you might miss a payment, the best step is to act before it’s recorded as late. Contact your provider early. Banks, lenders, energy suppliers, and mobile companies often offer hardship schemes or flexible payment plans to prevent a missed payment from damaging your credit.

Even if you’ve already missed a payment, paying it off quickly and setting up reminders or direct debits can help prevent further issues.

And if you’re regularly missing payments – or your outgoings exceed your income – speak to us. We can help you review your budget, check whether you’re missing out on extra support, or find the right debt solution for you.