What Happens If You Can’t Pay Off Your Debts By 2026? Your Rights, Support & What to Do Next
Vicky Parry
5 May 2026
Study Time: 5 minutes
If you’re struggling to pay your bills right now, you’re not alone—and there are clear steps you can take right away to protect yourself.
⚠️ The most important thing: Never ignore bills or letters. Acting early gives you more security and options.
What happens if you don’t pay your bills?
What happens next depends on the type of bill—but in most cases, it follows a clear process:
- Missed payment: You will receive reminders and late fees
- Another action: Suppliers may contact you to arrange payment
- Climbing: Debt collectors or enforcement actions may follow
Energy bills
Suppliers should work with you to agree on a payment plan before taking any action. Terminations are rare and very controlled.
Council Tax
If you miss payments, your council can take legal action, including court orders and enforcement agents.
Rent or mortgage
Missing payments can lead to backlogs and, in extreme cases, eviction or repossession—but this takes time and involves legal action.
Credit cards and loans
You may face interest charges, defaults and credit score damage, but lenders should treat you fairly and offer support if you struggle.
💡 Important point: Many companies prefer to agree to a payment plan rather than escalate the situation.
What help can you get right now?
There is more support available than most people realize:
- Payment plans: Spread the cost over time
- Power support: Hardship fees and supplier allowances
- Council tax reduction: Discounts based on income
- Benefits support: Universal Credit or extra payments
- Charities: Organizations such as Citizens Advice can help negotiate
📊 Tip: Check which funding is right for you – you could be missing out on hundreds of pounds a year.
What should you do TODAY if you are struggling?
- Contact your suppliers immediately – don’t wait
- Ask about hardship support or payment plans
- Prioritize important debts (housing, energy, council tax)
- Check out the benefits and allowances you may qualify
- Get free advice on loans to the poor if needed
🚨 Early action can prevent: additional fees, legal action, and damage to your credit score.
WHAT NOT to do
- ❌ Ignore letters or calls
- ❌ Take a high-interest loan to pay off debts
- ❌ Use Buy Now Pay Later for essential items
- ❌ Panic—there are always options available
Expert understanding
Jasmine Birtles, founder of MoneyMagpie, says:
“The worst thing you can do is ignore the problem. Most companies will work with you if you talk to them early. There is help available—but you need to take that first step.”
Marc Crosby, MoneyMagpie, adds:
“We’re also seeing more scams targeting people in financial difficulty. Always check who you’re dealing with and never share personal information unless you’re sure.”
Fast responses
Can you go to jail for debt in the UK?
No, you cannot be tied to multiple types of your debts.
Can your power be cut off?
It is very rare and providers must follow strict rules before doing so.
Will the bailiffs come?
Only after legal action has been taken, and you will receive notification first.
Do missing payments affect your credit score?
Yes, but acting quickly can reduce long-term damage.
The last word
If you are struggling to pay your bills, the most important thing is to act early. There is support available—and taking action now can make a big difference in your financial future.
👉 For more money saving tips and support, sign up for the free MoneyMagpie newsletter and get advice straight to your inbox every week.
📞 Need help right now?
• Citizens Advice: Free, confidential advice on all debts
• Step Change: Free credit support and payment plans
• National Debt: Expert guidance on your rights
• Housing: Housing assistance and evictions
👉 All these services are FREE to use.
What to contact if you can’t pay: bill-by-bill help
If you are out of debt, the best first step is to contact the company or organization you owe money to and ask for their crisis support team. Do this before you miss another payment if you can.
MoneyMagpie tip: Keep a note of all calls, including the date, time, who you spoke to and what was agreed upon. If you are arranging a payment plan, request it in writing.
Energy bills: gas and electricity
Who to contact: Your energy provider first. You can also contact Ofgem, Citizens Advice and the British Gas Energy Trust.
What help is available:
- Affordable payment plans
- Pay break or reduction
- More time to pay
- Hardship funds or grants
- Help if you use a prepaid meter
- Support for Registering Essential Services if you are at risk, disabled, elderly, have young children or need extra help
- Warm Home Discount, if you qualify
Ofgem says providers should work with customers who find it difficult to agree a payment plan they can access, and may offer payment breaks, reductions, more time to pay and access to hard cash. Citizens Advice says some eligible households can get £150 in Warm Home discount. :ContentReference[oaicite:0]{index=0}
Helpful MoneyMagpie link: Add your guide to power grants and support here.
Council Tax
Who to contact: Your local council. Search your council’s website for “council tax support”, “council tax reduction”, “hardship fund” or “council tax credits”.
What help is available:
- A reduction in Council Tax if you are on a low income
- Single person discount if you are staying alone
- Support for optional difficulty
- Spreading payments over 12 months instead of 10
- Temporary payment arrangements if you have debt
Council Tax is a priority bill because councils can increase arrears. The Government has also announced changes to change council tax payments to 12 months by default, while still allowing families to pay over 10 months if they wish. :ContentReference[oaicite:1]{index=1}
Helpful MoneyMagpie link: Add your 2026 Council Tax here.
Hire
Who to contact: Your landlord, letting agent, local council housing team and Shelter.
What help is available:
- A realistic payment plan with your landlord
- Optional Housing Payment from your council
- Universal Credit housing element, if applicable
- Local social support
- Advice from Shelter if you are threatened with eviction
If you are no longer in the rental business, explain the situation in advance and make a realistic return offer. Don’t settle for money you can’t afford.
A Mortgage
Who to contact: Your mortgage lender first. You can also get free guidance from MoneyHelper, StepChange, National Debtline and Citizens Advice.
What help is available:
- Interim payment arrangements
- Switching to interest-only payments
- Extending the mortgage term
- Abatement of interim payments
- Loan Interest Support, if applicable
- Free credit advice before you get into debt
MoneyHelper says the first step should always be to contact your lender, and that acting quickly usually gives you more options before a missed payment. :ContentReference[oaicite:2]{index=2}
Water bills
Who to contact: Your water company first. You can also contact CCW, the Water Consumers Council or Citizens Advice.
What help is available:
- Social taxes for low-income customers
- WaterSure bill cap, if you qualify
- Pay breaks or reduced payment plans
- Essential services if you need more help
- Heavy water company fees
Citizens Advice says WaterSure can help some households with benefits who need to use a lot of water, including for medical reasons or because they have a certain number of school children. :ContentReference[oaicite:3]{index=3}
Credit cards, loans and overdrafts
Who to contact: Your lender first. Then talk to a debt free charity such as StepChange, National Debtline or Citizens Advice.
What help is available:
- Affordable payment plans
- Temporary payment is suspended
- Reduced interest or fees
- Respiratory protection
- Debt Management Programs
- Help prioritize debts
Important: Be very wary of paid “debt help” firms. Free charities can provide the same – or better – help without charging you.
