Q&A: If i cancel my broadband direct debit, will it affect my credit?
Question by StuTheStig: If i cancel my broadband direct debit, will it affect my credit?
I have a broadband account, and they want £75 for a early cancellation from the contract. If i just cancel the direct debit and close the bank account will it effect my credit rating? Im currently living in rented accommodation, and will be moving back in with my parents. I know ill proberlly need to pay the money to get out of it, but i was wondering just what if i cancel the direct debit and close the bank account?
Would appreciate any help!
Best answer:
Answer by wisdom
if you don’t pay the 75 Pound you will end up with a county court judgement and this will affect your credit rating
What do you think? Answer below!
@Wisdom:
A county court Judgement is ONLY given when the two sides cannot come to a repayment agreement!!!!
A person does not just *get* a CCJ the minute they default on payments!!!
There is process to go through first!!! Usually going through a debt collection agency FIRST!
GET your facts straight!
To the asker, see if you can come to a repayment agreement, but the likely hood is, that they will not agree, as you have broken the terms of your agreement hence the £75 charge.
It will affect your credit yes, because if you do not pay the bill you will *default* and this is registered on your file. What comes next will be late payment charges or admin fees, pushing the debt higher. Then it will go top a debt collection agency who will probably add more *fees*. Once there, if you still can’t come to a reasonable amount to repay, they will keep adding charges, possibly send to an external debt collections who will try to arrange a repayment, and then finally it can be passed onto a solicitors who will sent it to the courts.
If I were you, I’d try to take the broadband with you OR pay up. If your moving into your parents, won’t you be helping pay for their phone line and broadband as well? Is it possible you can move the broadband with you and just pay some towards your parents phone line? OR tell them the problem you have, see if they can lend you the money and you can pay them back and make sure you promise to contribute to their phone line as well!!
It’s not worth messing your credit up over £75! Trust me! I am in debt and know ALL the roads!
“and they want £75 for a early cancellation from the contract” This is to cover their expenses in the event you don’t honor the contract. if you pay this amount, it will not hurt your credit. It is just a predetermined penalty. If you just cancel the debit, you will still owe the cancellation fee plus any other fees they assess per the contract you signed.