Mobile phone and broadband debt
Phone and broadband arrears are non-priority debts, but you rely on the service every day. Here is how to keep connected and deal with what you owe.
Applies to: England, Wales & Northern Ireland
What to do now
- Ask your provider for a payment plan and a cheaper deal — social tariffs exist for people on certain benefits.
- Put essential bills first with the Bill Prioritiser.
- If you dispute the bill, complain in writing and keep copies.
What you might owe
A mobile contract is often two agreements: one for the airtime and one for the handset. A separate handset agreement is usually a regulated credit agreement, like a loan, while the airtime is a service. Broadband debts are usually for the service, plus charges for ending the contract early. Check your bills so you know which parts are arrears, which are future payments, and whether any early termination charge has been added.
Priority or non-priority?
Non-priority. Losing your phone or internet is serious, especially if you need it for work, benefits or job searching, but it is not the same as losing your home. Rent, council tax and energy come first. That said, if the service is essential, it is worth agreeing a small payment to keep it.
What happens if you do not pay
- Restriction or disconnection. The provider may limit outgoing calls or data, then disconnect. Ofcom guidance says providers should avoid or limit restricting a service people rely on as a way to get payment.
- Contract ended. The provider can end the contract and ask for an early termination charge, which can be much larger than the arrears.
- Credit file. Missed payments and a default can be recorded and affect future phone contracts and credit.
- Collectors and court. The debt can be passed or sold to a debt collector, who may bring a court claim. Wages or bank accounts can only be targeted after a CCJ and a further court order.
What you can do
- Contact the provider early. Ofcom expects providers to point customers in difficulty to support such as payment plans or payment deferrals, and to check people’s circumstances before using collectors.
- Ask about a social tariff. Many broadband providers have cheaper tariffs for people on Universal Credit and some other benefits.
- Cut the cost. If you are out of contract, a SIM-only or cheaper deal may be much cheaper. Pay-as-you-go keeps a phone working while you deal with arrears.
- Complain if the bill is wrong. Complain to the provider first. If it is not resolved, you can usually take it to the provider’s independent alternative dispute resolution scheme after eight weeks, or sooner if you get a deadlock letter.
Formal solutions
Phone and broadband arrears, termination charges and handset finance are unsecured debts, so they can be included in a debt management plan, a DRO, an IVA or bankruptcy. Including a debt may lead the provider to end the contract, so you may need a new SIM-only or pay-as-you-go deal for an ongoing service.
You never have to pay for debt advice. MoneyHelper (government-backed), StepChange, National Debtline and Citizens Advice all give free, confidential advice with no obligation.
Common questions
Can I be taken to court for mobile phone debt?
Yes. The provider or a debt collector can make a court claim, but only after sending a letter before claim. If a CCJ is made, you can ask to pay in affordable instalments.
Can my broadband be cut off for not paying?
Yes, the provider can restrict or disconnect the service. Ofcom expects providers to offer support such as payment plans and to avoid or limit restrictions on services people rely on.
Is a mobile phone bill a priority debt?
No. It is a non-priority debt, so pay rent or mortgage, council tax and energy first. If you need the phone, try to agree a small payment to keep the service.