What happens if you don’t pay back a personal loan in the UK?

Taking out a personal loan can give you the breathing space you need when covering a big expense. But life doesn’t always go to plan — and if you find yourself struggling with repayments, it’s natural to worry about what happens next. Here, we’ll walk you through what happens if you don’t pay back a personal loan UK, and what support and options are available.

What happens if you miss a payment?

If you miss a loan repayment, your lender will usually try to contact you first. They may:

  • Remind you of the missed payment and ask you to catch up quickly

  • Add late payment fees or charges to your account

  • Report the missed payment to the credit reference agencies

This missed payment will then appear on your credit report and could affect your credit score. Lenders use this information when deciding whether to approve you for future borrowing.

If you continue to fall behind

If your loan remains unpaid, your lender may take more serious steps. These could include:

  • Defaulting the loan: This means the account is closed and marked as defaulted on your credit report, which can impact your score for up to six years.

  • Debt collection: Your lender might pass your debt to a collection agency.

  • Court action: In some cases, the lender can apply for a County Court Judgment (CCJ) against you

All of these steps can make borrowing in the future more difficult and more expensive.

What you can do if you’re struggling

If you’re worried you can’t meet your repayments, don’t wait for the situation to get worse. Here are some steps you can take:

  • Talk to your lender: Many lenders can offer temporary payment plans or support.

  • Check your options with ClearScore: We work with Clearer to help people combine debts into one manageable monthly payment.

  • Get free debt advice: Charities like StepChange and National Debtline can provide tailored support.

  • Keep an eye on your credit score: Tracking your credit score for free can help you see the impact of missed payments and what you can do to improve it over time.

The bottom line

Missing a personal loan repayment doesn’t mean the end of the world — but ignoring the problem can make things harder in the long run. If you’re unsure about what happens if you don’t pay back a personal loan UK, remember you’re not alone. The key is to act quickly, speak to your lender, and explore the support available. ClearScore is here to help you understand your options and take back control of your money.