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Debt and Money Advice, Non-Priority Debts, Bills & Utilities· 3 min read

Non-Priority Debt: Phone Debt

Phone debt is usually treated as a non-priority debt, because pay-as-you-go mobiles are a flexible alternative if your contract is cancelled or your landline is disconnected. However, if you rely on your phone for essential services (such as internet access bundled into the contract), it could be treated as a priority. Contact us for free advice.

Phone debt

If you are worried about phone debt, you are not alone. Whether it is a mobile contract or a landline, falling behind on payments can feel stressful. Here is what you need to know about your options.

If you have fallen behind on your phone bill, try not to panic. Phone debt is usually treated as a non-priority debt, which means the consequences are less severe than debts like rent or council tax. Pay-as-you-go mobiles are a flexible alternative if your contract is cancelled or your landline is disconnected.

However, there are situations where phone debt could become a priority. Some areas of the country still have no mobile signal, so a mobile phone may not be a reasonable replacement for a landline. Some phone contracts are also part of a bundle of services that includes internet access and satellite or cable TV. If you rely on these services for essential needs, the need to keep your phone service could mean the arrears are treated as a priority debt.

What happens if you do not pay

Phone debt is a civil matter, not a criminal one. Your phone provider cannot have you arrested. However, the debt recovery process follows a clear set of stages:

  • Missed payments and disconnection. If you miss payments, your provider will add charges and may restrict or disconnect your service.
  • Debt collection. Your provider may pass the debt to a collection agency. The collection agency has no more legal powers than the original provider.
  • County Court Judgment (CCJ). If the debt remains unpaid, your provider (or the collection agency) can apply to the court for a County Court Judgment. This is a court order that legally compels you to pay. A CCJ will appear on your credit record and can affect your ability to borrow money for six years.
  • Bailiffs. If you ignore a CCJ, the court may send bailiffs to recover items from your home, but only if the debt is significant.
  • Statute-barred debts. In England and Wales, if no payment has been made and you have not acknowledged the debt in writing for six years, the debt may become "statute-barred". This means it is no longer enforceable through the courts.

What you can do

  • Contact your provider. Let them know you are struggling to pay. Many providers will agree to a payment plan before things escalate.
  • Check whether your contract is bundled. If your phone is part of a package that includes internet or TV you need, let us know. It may affect how we advise you.
  • Do not ignore letters from collection agencies. They cannot do more than the original provider, but ignoring them could lead to court action.
  • Get in touch with us. We can help you understand your options, check whether your debt is statute-barred, and work out what to do next.

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