If you stop paying your mobile phone bill, the network will cut off your service, register a default on your credit file, and can pass the debt to debt collectors. Mobile phone debt is unsecured, so it can be included in an IVA, DMP, or other debt solution.
Networks can’t send bailiffs for mobile phone debt. But if they get a County Court Judgment (CCJ) and you still don’t pay, they can enforce it through bailiffs or an attachment of earnings order.
What Happens If You Don’t Pay Your Mobile Phone Bill#
When you miss payments on your mobile phone contract, here’s what happens:
Month 1: Reminder letters and calls
Your network sends reminder letters and calls you asking for payment. Late payment fees (usually £5-£10) are added to your account.
Months 2-3: Service disconnection
If you don’t pay after multiple reminders, the network will disconnect your service. You can’t make or receive calls, send texts, or use mobile data.
Your phone is still locked to the contract, so you can’t use it with another network.
Months 3-6: Default notice
The network sends a default notice warning that they’ll cancel your contract and register a default on your credit file.
Once the default is registered, it stays on your credit file for 6 years, severely damaging your credit score.
Months 6-12: Debt sold to collectors
The network might sell your debt to a debt collection agency like Lowell, Cabot, or Arrow Global.
The debt collector will contact you demanding payment. They can’t do anything the network couldn’t do, but they’re often more persistent.
After 12+ months: Court action
If you continue ignoring the debt, the network or debt collector might take you to court for a CCJ.
If granted, they can enforce the CCJ through:
- Attachment of earnings (money deducted from your wages)
- Bailiffs visiting to seize goods
- Charging orders (if you own property)
Can Mobile Phone Companies Send Bailiffs?#
Not directly. Mobile phone debt is unsecured, which means the network can’t send bailiffs just because you owe money.
Bailiffs can only be used if:
- The network gets a CCJ against you
- You still don’t pay after the CCJ
- The network applies for bailiff enforcement
This process takes months (sometimes years), and networks rarely pursue it for smaller debts under £1,000.
If bailiffs do turn up, they must follow strict rules. They can’t force entry on the first visit, and they need a court order (called a warrant of control) to seize goods.
Check our guide on what bailiffs can and can’t do if you’re worried about enforcement action.
Can Mobile Phone Debt Be Included in an IVA?#
Yes. Mobile phone contract debt is unsecured, so it can be included in an IVA.
If you have multiple debts (credit cards, loans, mobile phone contracts) totalling £6,000+, an IVA might be suitable.
Once your IVA is approved:
- The mobile phone debt is frozen (no more interest or charges)
- The network can’t take further action
- You make one affordable monthly payment covering all your debts
- After 5-6 years, any remaining balance is written off
For example:
- You owe £800 on a mobile contract
- You also owe £8,000 on credit cards and loans
- Total debt: £8,800
- You enter an IVA and pay £150/month for 5 years (£9,000 total)
- All remaining debt is written off
Check if you qualify using our free IVA calculator.
How Much Does Mobile Phone Debt Cost?#
Mobile phone contracts include:
- The phone cost: Spread over 12-24 months
- The service cost: Calls, texts, and data
- Early termination fees: If you cancel before the contract ends
If you stop paying, networks add:
- Late payment fees: £5-£10 per missed payment
- Default fees: Around £10-£20
- Interest: Some networks charge interest on arrears (usually 8-10% APR)
A £50/month contract over 24 months = £1,200 total. If you stop paying after 6 months, you still owe £900 (18 months × £50) plus fees.
Networks can demand the full remaining balance as soon as you miss payments. This is called “accelerated payment.”
Can You Cancel a Mobile Phone Contract If You Can’t Afford It?#
Not without paying an early termination fee. Mobile phone contracts are legally binding for the minimum term (usually 12, 18, or 24 months).
If you want to cancel early, you’ll have to pay:
- All remaining monthly payments
- Early termination fees (typically £100-£200)
Some networks will negotiate if you’re experiencing genuine hardship (job loss, serious illness, etc.). Call them and explain your situation. They might:
- Reduce your monthly payment temporarily
- Switch you to a cheaper tariff
- Offer a payment holiday (1-3 months)
- Accept a settlement figure (less than the full balance)
But you can’t just stop paying and walk away. The debt follows you, damages your credit score, and can escalate to court action.
Mobile Phone Debt and the Consumer Credit Act#
Mobile contracts often involve two separate agreements:
1. The service agreement (calls, texts, data)
This is NOT covered by the Consumer Credit Act. It’s a standard service contract, like your utilities or broadband.
2. The phone purchase agreement (the device itself)
This IS covered by the Consumer Credit Act if the phone cost over £100. It’s treated as a credit agreement because you’re paying for the phone in instalments.
Why does this matter? If the phone agreement is covered by the Consumer Credit Act, you have stronger rights to challenge the debt or ask for documentation.
You can request a copy of the credit agreement under Section 77/78 of the Act. If the network can’t provide it, they can’t enforce the debt.
What to Do If You’re Struggling with Mobile Phone Debt#
Contact Your Network Provider#
Call them as soon as you know you can’t afford your bill. Most networks have hardship teams who can help.
They might offer:
- Lower monthly payments
- A switch to a cheaper tariff
- A payment plan to spread arrears over 3-6 months
- A payment holiday (temporary suspension of payments)
Networks would rather receive reduced payments than have you default and stop paying altogether.
Prioritise Other Debts First#
Mobile phone debt is a non-priority debt. If you have to choose between paying your phone bill or paying rent, council tax, or utilities, always prioritise the essentials.
Missing mobile payments affects your credit score, but it won’t leave you homeless or without heating.
Get Free Debt Advice#
If you’re struggling with multiple debts (not just your phone), contact a debt advice charity like StepChange, National Debtline, or Citizens Advice.
They’ll assess your situation and recommend the best debt solution. This might be a Debt Management Plan, an IVA, or a Debt Relief Order.
Don’t ignore the debt. It won’t go away, and ignoring it makes it worse.
How to Reduce Your Mobile Phone Bill#
If your contract is too expensive, here are ways to reduce costs:
Switch to a cheaper tariff: Ask your network if they have a cheaper plan with fewer minutes, texts, or data.
Remove extras: Cancel add-ons like insurance, international calling, or premium content you don’t use.
Use WiFi instead of data: Connect to WiFi at home and in public spaces to avoid using your mobile data allowance.
Cap your usage: Ask your network to cap your spending so you can’t go over your allowance. Most networks offer this for free.
Consider SIM-only: When your contract ends, switch to a SIM-only deal. You keep your phone and pay only for service (calls, texts, data). SIM-only deals cost £5-£20/month instead of £40-£60/month.
Use pay-as-you-go: If you rarely use your phone, switch to pay-as-you-go. You buy credit in advance and only pay for what you use.
What If Your Bill Is Wrong?#
If you think you’ve been charged incorrectly:
- Check your contract and tariff details
- Call your network and ask them to explain the charges
- If they won’t help, make a formal written complaint
- If still unresolved, escalate to Ofcom (the communications regulator)
Common billing errors include:
- Charges for premium services you didn’t use
- Roaming charges when you didn’t go abroad
- Data charges when you were connected to WiFi
- Services you cancelled but are still being billed for
Keep records of all calls, emails, and letters. If the network admits the charges were wrong, they should refund you and apologise.
Can Mobile Phone Debt Be Statute-Barred?#
If you haven’t acknowledged a mobile phone debt or made a payment in 6 years (England/Wales) or 5 years (Scotland), it might be statute-barred.
Statute-barred debt can’t be enforced through the courts. The network can still ask you to pay, but they can’t take legal action.
However, if you:
- Make a payment (even £1)
- Acknowledge the debt in writing
- Agree to a payment plan
…the 6-year clock resets, and the debt is no longer statute-barred.
If you think a mobile phone debt might be statute-barred, get advice before responding to any letters or calls.
If you’re struggling with debt and want to find out what options are available, use our free IVA calculator to see if you qualify and how much debt you could write off. It takes 2 minutes and won’t affect your credit score.
Frequently Asked Questions#
Can I keep my phone number if I can’t pay my bill?#
Yes. If your network disconnects your service, you can transfer your number to a new network by requesting a PAC (Porting Authorisation Code). You’ll still owe the debt to your old network, but you can keep your number.
What if I can’t afford the phone but I need the number for work?#
Contact your network and explain the situation. They might let you switch to a SIM-only deal on a cheaper tariff. You’d have to pay off or settle the phone cost separately.
Can my employer help with mobile phone debt?#
Some employers offer mobile phone allowances or salary sacrifice schemes. Ask your HR department if they can help. But they’re not obliged to pay your personal mobile debt.
Will mobile phone debt affect my mortgage application?#
Yes. Missed payments and defaults on your credit file make it harder to get approved for a mortgage. Lenders see mobile phone defaults as a sign you can’t manage credit responsibly.
Can I negotiate a settlement for less than I owe?#
Possibly. If your debt has been sold to a debt collector, they might accept a reduced lump sum (e.g., 50-70% of the balance) to settle in full. Get any agreement in writing before you pay.
What if I’ve lost my phone or it was stolen?#
Contact your network immediately. If you have insurance, file a claim. You’re still liable for the contract payments, but insurance should cover the phone replacement. If you don’t have insurance, you’ll have to pay for a replacement while still paying the contract.
If you’re struggling with mobile phone debt and other debts, use our free IVA calculator to see if you qualify and how much debt you could write off. It takes 2 minutes and won’t affect your credit score.