5.5m miss bill payments

Some 5.5 million Britons missed a bill payment last year – with credit card payments forgotten most often.

Credit card bills were most likely to be missed by those aged 25 to 34, as a new generation of urban 'nouveau poor' grows under the pressure of rising interest rates and the credit crunch.

The research by moneysupermarket.com reveals 13 per cent of people missed at least one bill in 2007 – with payments for satellite TV more likely to be met than credit card bills.

This is despite the fact dropping a credit card payment can result in a penalty fee of on average £12 and a black mark on your credit rating.

"Close to three million credit card holders will have paid out over £35 million between them in penalty fees," said Steve Willey, head of credit cards at moneysupermarket.

"But it is the damage to their credit rating that is more costly to them and to the other 2.5 million consumers who have missed payments elsewhere."

He added: "Consumers may feel by missing a payment they're saving a few pounds but in the long run, missing the occasional payment will affect your credit rating as lenders assess your overall ability to repay on a regular basis."

Kate, 23, political analyst from London and self-confessed member of the 'nouveau poor', missed a credit card bill payment this month and explained why.

"When it comes to personal finance, I tend to bury my head in the sand," she said.

"I knew my credit card bill was due but I did not want to open the statement so ended up missing the deadline. In trying to avoid facing up to my debt I've now been hit by a further charge."

Kate added: "In future I think I will set up a direct debit to make sure I pay the minimum amount each month – I can always top it up if I am able to make larger payments."