Understanding payment difficulties
How many missed payments lead to default?
There is no fixed number for every account. Three to six months in arrears is a general guide, with exceptions—not a safe period in which to leave payments unpaid.
By Count Ready · Updated
What does the three-to-six-month guidance mean?
The industry reporting principles say a default may be recorded at three months in arrears and normally by six months, when the account relationship has broken down. They allow exceptions, including later reporting for some secured or long-term lending.
This describes credit reporting. It does not set a universal deadline for collection action, court proceedings or repossession.
Read the industry reporting principles (PRAAD), published by CIGB (opens in a new tab)
Count the shortfall, not just missed dates
Partial payments can leave an account behind even when money has been paid every month. Check the required instalments against the payments credited to the account.
Illustration: if £200 is due each month and only £100 is paid for four months, the shortfall is £400 before any interest or charges. Four smaller payments do not mean the account is up to date. This arithmetic is not a prediction of the provider’s reporting code or default date.
A default notice and a credit-file default are different
A notice under consumer credit legislation
For relevant agreements, a notice under the Consumer Credit Act is required before certain enforcement steps. Read what it asks you to do and the deadline it specifies.
It is not itself a court judgment or proof that a credit-file default has already been recorded.
National Debtline explains the distinction (England and Wales guide) (opens in a new tab)
A warning about credit reporting
The industry principles generally require at least 28 days’ warning before a default is reported, with exceptions such as fraud and certain insolvency or court-related circumstances. This reporting warning is distinct from a statutory default notice.
The ICO explains that not receiving a statutory notice does not automatically make an otherwise accurate credit-file default invalid.
ICO guidance on default notices and credit records (opens in a new tab)
What to do before the situation escalates
- Establish what is due. Ask for the arrears amount, payment dates and a breakdown of any charges you do not understand.
- Explain what you can afford. Prepare a household budget and say whether the difficulty is temporary or continuing.
- Discuss the available support. Ask what arrangements the provider can consider and what information it needs.
- Confirm any agreement in writing. Record the payment amount, start date, duration, review point and reporting treatment.
- Keep deadlines visible. A complaint or support request does not, by itself, confirm that other action has been paused.
Debt advice can help you weigh the consequences of different bills and work out a sustainable response. Tell the adviser where you live so the guidance fits your part of the UK.
Find free debt advice through MoneyHelper (opens in a new tab)
Do not use a default countdown for mortgage arrears
Contact your mortgage lender as soon as you anticipate difficulty or fall behind. Mortgage arrears, credit reporting and possession proceedings are separate matters; a fixed number of missed payments cannot tell you when legal action will occur.
MoneyHelper explains the support available and recommends early contact with your lender. If you have received legal papers, get advice on those documents and their deadlines.
MoneyHelper: help with mortgage payments (opens in a new tab)
If a default has already been recorded
Experian states that a default normally remains for six years from its default date, whether or not it is paid. Repayment and record removal are different outcomes.
Experian’s explanation of default records (opens in a new tab)
If the entry looks wrong, identify the specific date, balance or status you dispute and gather supporting records. Use our default correction guide (opens in a new tab) for the next steps.
If the report instead shows an incorrect monthly payment marker, see correcting missed-payment entries (opens in a new tab). Raising a reporting issue does not resolve a separate disagreement about what you owe.
Questions about missed payments and default timing
Does the third missed payment automatically trigger a default?
No. The general guidance concerns the level of arrears and the account relationship, rather than an automatic switch on a particular payment date. Ask the provider for the arrears position and any proposed action; do not treat the absence of a default as permission to delay.
Do the missed payments have to be consecutive?
Not necessarily. A payment made this month may leave earlier shortfalls unpaid. The useful question is how far the account remains behind its agreed schedule, not simply how many recent payments you have made.
Does receiving a default notice mean a CCJ has been issued?
No. A creditor’s notice is not a court judgment. If you receive court documents, deal with those separately and obtain advice about the stated deadline. Court procedures and terminology differ across the UK.
Will a small payment always prevent a default?
No. A small payment may reduce what you owe without meeting the required payment or creating an agreed arrangement. Ask the provider what it has accepted and what remains outstanding. Avoid promising an amount you cannot maintain.
Does settling a default restart its six-year reporting period?
No. An accurately dated default normally remains for six years from its original default date. Settlement should update the account’s balance and status; it does not normally restart that period or remove the default immediately.
Can I still discuss a mortgage after a default?
Yes, although a discussion is not an assurance of acceptance. An adviser needs to assess your current finances and the details of the default. Share the date, balance, settlement position and any other payment problems before deciding whether an application is appropriate.
Discuss your mortgage plans with Count Ready
For a future purchase or remortgage, an adviser can discuss your credit history and circumstances. For overdue bills or a repayment arrangement, contact the relevant provider or a debt-advice service.
Give a brief outline in the callback message; keep account numbers and documents out of the form.
Your initial mortgage consultation is free. Request written fee details before agreeing to any chargeable work.
Terms of Business (opens in a new tab) · Privacy Policy (opens in a new tab)
Your home may be repossessed if you do not keep up repayments on your mortgage.