Debt help if you owe money as a result of a legal contract

Contract debts include money owed for services. The most common types of contract debt include:

  • Gym memberships
  • Mobile phone contracts
  • TV/Internet packages

Contract debts involve a set period of time and set or variable payments. In the first instance, where you stop repaying the contract, you’ll lose access to the services. As you fall into arrears, your account will default, after which the debt will progress to collection.

This will be recorded on your credit report, which will affect your ability to get credit in the future. Ideally you should seek debt help prior to arrears.

Worried about debts that won't go away?

Debt help tips for tackling contract debt:

  • As soon as you know that you’re going to struggle with your repayments, you should contact your services pro They may be able to provide you with a reduced repayment option, or divide your total arrears over the remainder of the contract.
  • In some especially dire situations, mostly where your circumstances have changed for the foreseeable future, your service provider may cancel your contract. Check your contract for details as to whether this may be an option.

Ready to seek debt help? Talk with the National Debt Help team on 0800 002 9051.

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