The Cost of Missed Payments: The impact of missing credit card payments
Written by
Joe TownerFor millions of people across the UK, staying on top of credit card payments is not always straightforward. To explore this, the credit card experts at Zable surveyed 2,000 UK credit card holders to understand how often payments are missed, the reasons behind these lapses, and the financial and emotional impact that can follow.
By identifying where people struggle most, this research highlights where better reminders, clearer information, and stronger financial support could make a meaningful difference.
How common are missed credit card payments in the UK, and why are people missing them?
Forgetting to make a credit card payment is far from rare, with our research showing over a third (35%) of credit card holders in the UK - equivalent to 12 million people nationally - have missed paying a credit card bill in the past 12 months.
While missed payments are often viewed as a sign of poor money management, the data suggests a more complicated picture.
Misunderstandings and forgetfulness are the biggest causes of missed payments
Across all respondents who missed a payment, the most common reason was thinking the due date was later than it actually was, affecting an estimated three million credit card holders (25%). Similarly, an additional 25% of respondents have missed a payment due to simply forgetting.
Reasons for missing a credit card payment:
Reason | % of credit card holders who cite this reason for missing a credit card payment |
|---|---|
I thought the due date was later | 25.25% |
I forgot | 24.96% |
Didn't have enough money in my account | 23.55% |
Temporarily distracted due to life events | 22.27% |
I thought it was already paid with an automated payment | 21.70% |
Didn't see the reminder | 19.72% |
I was travelling | 15.89% |
Technical/app issue | 15.18% |
Payment amount was unclear | 14.89% |
Mental health or stress | 13.90% |
Unclear statements | 8.51% |
The findings also point to wider gaps in financial understanding, particularly among younger consumers. More than a quarter (27%) of 35-44 year olds say they do not understand how late payment fees are calculated, while one in four (25%) 25-34 year olds admit they are unclear on how credit card interest is charged.
This lack of clarity around core credit card terms and charges may be contributing to missed payments and making it harder for people to stay on top of their finances.
James Goforth, Product Manager at Zable, says:
"A missed payment can have immediate and longer-term consequences, but there are practical ways to reduce the risk. Setting up payment reminders, enabling app notifications, checking due dates at the same point each month, and automating payments where possible can all help create stronger routines.
“For some people, missing a payment isn't about forgetting at all, it's about timing. Income and outgoings don't always align, and a payment due date that falls in the wrong part of the month can create a shortfall. If that's a recurring issue, it's worth contacting your provider to discuss moving your payment date to better fit your pay cycle.”
The consequences of missed credit card payments
Depending on the card and balance, missing a credit card payment can trigger several different costs, including late payment charges and interest on the carried-over balance, both of which can build over time if the issue is repeated. If the card is already near the credit limit, these costs could push it over, resulting in an additional over-limit fee.
Our findings show that of those who have missed a payment, the average reported loss is £48 per year - equivalent to 4 late payment fees at the industry-standard £12. When it comes to interest caused by the late payment, the average reported loss is a further £52. Across all credit card users who have missed payments in the UK, this would equate to nearly £1.25 billion in late fees and interest on payments that otherwise would have been made.
Lower credit scores and increased financial stress are linked to missed payments
When asked about the wider impact of missed credit card payments beyond the financial cost, more than one in six respondents (16%) reported a decline in their credit score, equating to an estimated 5.6 million credit card holders. This figure rises to almost a quarter (24%) among those aged 35-44.
James Goforth, Product Manager at Zable, comments:
“The immediate cost of a missed payment can seem manageable, but the wider impact is often more significant. A missed payment can affect your credit score, which is a rating that reflects how reliable you are at managing and repaying credit. Lenders use it to help decide whether to offer credit and on what terms, so a lower score may make it more difficult to access credit or secure better rates in the future.”
In addition, nearly one in six respondents (14%) reported increased financial stress following a missed credit card payment, equivalent to an estimated five million credit card users, with this figure rising to almost a quarter among those aged 35-44. This indicates that the consequences of missed payments extend beyond financial penalties, often contributing to significant emotional and mental strain, particularly among mid-life adults who may already be managing multiple financial responsibilities.
The impact also carries over into day-to-day well-being. Around 12% of respondents reported anxiety and sleep disruption as a result of missing a payment. This more than doubles to 26% among 18-24-year-olds. In addition, nearly 2.5 million credit card holders (7%) said missed payments placed strain on their relationships, leading to arguments within the family.
Understanding of credit card terms and calculations
When assessing how well credit card holders understand their terms, 78% say they’re confident they know what happens if they miss a payment. However, almost one in four (23%) admit they’re unclear on how credit limits are set.
James explains:
“When you apply for a credit card, your bank or provider will assess your financial situation to determine your credit limit. They look at your credit history, credit score, income and in some cases your spending habits to find the amount they believe you can comfortably repay.”
Across virtually every literacy measure in the survey, women report lower confidence than men. Looking at how interest fees are charged, 79% of men say they are confident, compared with just 70% of women. On understanding how late fees are charged, 71% of men reported confidence versus 63% of women. The same pattern holds for knowledge of credit scores, annual fees, and how late payment fees are calculated.
Exploring age groups, it is those who are 25-34 that report the most confidence across the majority of areas, including how minimum payments and late payment fees are calculated, as well as how interest is charged, and credit limits are set. They’re also the age group who are most likely to have missed a credit card payment in the past 12 months, pointing to a disconnect between self-reported confidence and credit card behaviours.
When it comes to missing payments, 55+ year olds feel the most confident (81%) in knowing what happens. This could be driven by longer credit card ownership and, therefore, this age group being more likely to have experienced missed payments.
What to do if you miss a credit card payment
1. Make the payment as soon as possible
If you can, you should aim to pay the balance as quickly as you can to help limit additional fees and reduce the impact on your credit score.
If you can’t clear the full balance immediately, paying at least the minimum amount can still help to avoid further penalties, though you would still be charged interest on any remaining balance.
If you’re struggling to make a payment, independent charities such as Citizens Advice provide free, confidential advice tailored to individual circumstances, while services like National Debtline offer accessible support by phone and online. These organisations can help people better understand repayments, manage borrowing, and avoid missed payments before they become a bigger issue.
2. Pay your full balance where possible to minimise interest
Where possible, paying your full credit card balance each month is the most effective way to avoid interest charges altogether. Always make at least the minimum payment - on time - to avoid late fees and a negative impact to your credit score.
3. Reach out to your credit card provider
If it’s your first missed payment or an isolated mistake, it’s worth contacting your provider to ask for support and advice. Here at Zable, online support is available 24/7. There is a range of potential support options, such as helping create repayment plans to clear the missed payments and putting a hold on payments whilst you find financial advice.
4. Put safeguards in place for future payments
Setting up a direct debit for at least the minimum payment can help ensure you never miss a payment due date. This acts as a built-in safety net, automatically covering your payment even if you forget or are unable to make a manual transfer on time.
While paying the minimum helps protect your credit score and avoid late fees, you can still make additional payments on top when you’re able to in order to reduce interest costs and clear your balance faster.
5. Use reminders and budgeting tools
Calendar alerts, mobile banking notifications, and budgeting apps can all help you stay on top of upcoming payments and reduce the risk of missing key dates. Setting reminders a few days before your due date gives you time to check your balance and ensure sufficient funds are available - here at Zable we do this for you, informing users of upcoming payments before the deadline. If you manage multiple credit cards, it can be especially useful to keep a simple overview of all payment dates in one place, helping you prioritise repayments and avoid confusion. Zable’s app offers real-time alerts for spending and upcoming payments, which can make it easier to track activity and stay in control of your credit commitments.
Sources and methodology
Methodology summary:
This report is based on a survey of 2,001 UK credit card holders.
For calculating the number of credit card holders in raw terms, we took the number of credit card holders from FCA and applied this to the survey findings.
Monetary values represent self-reported losses among respondents from interest fees, late fees and over-limit fees in the past 12 months. In order to calculate the cost of late fees and interest payments in the UK, midpoints were assigned to each band, then a weighted mean was calculated across the respondents who gave a usable answer, excluding "Not sure" and "Prefer not to say" responses.