Bad credit record

‍A payment default entry does not come as a surprise, as it is preceded by payment reminders and demands for payment. You will be separately notified of your first payment default entry by letter.

A payment default entry may result from a debt judgment issued at a district court, enforcement proceedings or the submission of a debt restructuring application to a district court. A payment default entry can be made around two months after the due date at the earliest. There are different payment default entries, with different effective periods.

A payment default entry may make it more difficult for you to obtain housing, a telephone subscription or insurance, for example. A payment default entry may prevent you from getting a new job if it involves financial responsibilities.

A payment default entry may be scary. However, paying for invoices and debts using a loan should be considered carefully, or often even avoided, because a debt cycle often makes financial problems worse.

If you pay for your telephone subscription, home insurance and rent on time, any payment default entry will not affect any agreements signed before the entry.

If you are having trouble with your payments, contact the creditors as soon as possible to agree upon payment arrangements. Make sure that your income covers your expenses to stop the debt cycle.

Read more about the debt collection process.

For more information on payment default entries, please see the website of the Finnish Competition and Consumer Authority.

‍