It is important to realise that getting into arrears will affect your credit rating. The record held by credit reference agencies about you will show that you have failed to make “normal” payments and will also indicate if there are any County Court Judgments (CCJ) against you or if you have entered into an IVA with your creditors.
This will affect your ability to get further credit. Usually information is held on your reference file for six years, however if you are able to fully repay the money owed within that time you can apply to have the details updated and the debt registered as satisfied. However, if you are declared bankrupt the effects on your ability to get credit, a mortgage and the like may be more long term.
Credit Reference Agencies:
