Hi, hope someone can give me some help-

I've had a major change in financial circumstances and as a result am in arrears of one payment of my loan to Egg. I called them today and have responded to their requests for communication. I explained my situation to them and said that if we could come to some kind of debt recovery plan that would be OK, i.e. lower my monthly amounts. This is the best option for me. However, the guy I spoke to told me that this would mean a default notice being issued onto my credit file. This would last for 6 years.

I'm worried about the consequences of this default notice. I see this as a temporary problem and it won't last a year let alone 6. Will this affect any chance I have of getting a mortgage, future credit cards, etc?

Any help or advice would be really appreciated.

Thanks,

Kevin

Yes, if you can't catch up with the payments you will have defaulted. It's best to have a plan and budget in place. Defaulting with a debt recovery plan is better than just doing nothing but it will effect your chances of future credit.