I entered into a contract two months ago. The contract was for the supply of services over a nine month period. The price was exactly £900, payable over nine months.

For various reasons, which I believe are justifiable, I have now decided that I do not wish to receive this service. I have so far only made one payment of £100 on 5 March. A second payment of £100 was due on 5 April, but I have not yet paid it. I have decided not to make this payment or any other payments.

Aside from the legal points on the contractual agreement, I would be very grateful if anyone could provide any advice or insight into how my long-term credit rating might be effected by effectively defaulting indefinitely on the remaining £800?

I look forward to any comments or suggestions. Thanks.

Hi

The more recent the default the more significant the impact, so over time the default would become less important. You also need to take into account the credit climate, i.e. if banks are tightening requirements generally, than 1 default is all it can take to exclude you, as against when credit flows more freely.

Then theres the problem you have is if they took you to court and got a country court judgement against u, that would be much more significant than 1 default.

Another point to consider is how important is yuor credit rating to you? I.e. if your about to apply for a mortgage then it would be a bad idea to get a default.

Thank you for all the advice.

I have decided to not default. But instead, agree a reduced amount to pay for immediate termination of the contract.

I agree that it would not be a good idea for a default to appear on my credit history.

Thank you for all the advice.

I have decided to not default. But instead, agree a reduced amount to pay for immediate termination of the contract.

I agree that it would not be a good idea for a default to appear on my credit history.

http://thecreditcure.com/

It's always good to pay your debts as agreed...
The question I have is this: does this debt appear on your credit report like a credit card would? The only way to know is by seeing your credit report....

If the company calls a collection agency, then the collection agencies item more than likely will appear on your credit report.
I agree with Shahla.... if the company decides to sue, you could have a judgement reported on your credit report.

So.. while it's painful to make the payments, in the long run it will save you money by not destroying your credit.