What happens if I make a token payment?
It buys you time, not freedom.
A 'Token Payment' (usually £1/month) is a standard holding strategy when you have zero disposable income. Creditors almost always accept it because it keeps the debt 'active'. However, it comes with a major catch: it resets the 6-year limitation clock every single month.
1 The Typical Timeline
If you take no action, this is the standard statutory process. Timescales are approximate but typical for 2026.
You offer £1/month
You send a budget showing you have no money left. You offer £1 just to show goodwill.
Creditor Pauses Action
Most creditors will accept this and stop calling for 6-12 months. They know a court won't order you to pay more.
Clock Reset
Every £1 payment is an admission of the debt. The debt will NEVER become Statute Barred as long as you pay.
2 Free Calculators & Checks
STOP! Before you pay £1, check if you are accidentally ruining your Statute Barred defence.
Limitation Impact Check
Should you pay £1 or wait?
See how likely the creditor is to accept your offer based on your situation.
Outcome Predictor
Likely Acceptance
For older non-priority debts (Cards, Loans, Catalogs), £1/month is standard industry practice. They refer to this as a 'breathing space' or 'temporary arrangement'.
Why £1?
Courts take the view that if you can't afford to pay, you can't allow the creditor to take what you don't have. £1 is the recognized minimum to show you aren't refusing to pay, you just CAN'T pay.
The Limitation Trap
If you have not paid for 5 years, making a token payment now is a disaster. It resets the clock to zero, just as it was about to become unenforceable. CHECK THE DATE before you pay.
Summary of Options
Set up a Standing Order
Always pay by Standing Order, not Direct Debit. You control the Standing Order; they control the Direct Debit.
Review in 6 months
Creditors will ask for a new budget every 6-12 months. Be prepared to prove nothing has changed.
Common Questions
Will they stop adding interest?
Usually yes, but you must ASK. Most creditors will freeze interest if you can prove financial hardship.
Does it affect my credit score?
Yes. The account will be marked as 'Default' or 'Arrangement to Pay'. Both hurt your score, but a Default is better in the long run as it drops off sooner.
Official Sources & References
Related Situations
Other guides accurately explaining what happens next in credit & records .
What happens if I miss a Credit Card payment?
Missing a credit card payment triggers a snowball of interest and fees. If ignored for 3-6 months, specific markers like 'Defaults' are added to your credit file, preventing you from getting mortgages or loans for 6 years.
What happens if I ignore debt collectors?
Debt collectors are NOT bailiffs. They have no special power to enter your home or take goods. But ignoring them can lead to a CCJ, which is serious.
What happens 30 days after a CCJ?
The first 30 days after a County Court Judgment (CCJ) are critical. If you pay in full within this window, the CCJ is removed from your record entirely. If you miss it, the damage lasts for 6 years.