If they get a 'money-only' claim, you will have a county court judgment (CCJ) registered against you.  This will go on your credit file and will affect your credit rating and probably make it more difficult for you to get a loan or credit card, for example, in the future.  It will also increase the amount you owe, because you will have to pay the creditor's costs awarded against you, and you must pay what the court orders.  If you don't, the creditor can use bailiffs and other measures to make you pay.

There are advantages to a CCJ, if you really can't come to an agreement with the creditor to pay back the money.  It should mean that they stop adding interest to what you owe and in most cases, the court will set a repayment plan that you should be able to afford.  As long as you keep up to the plan ordered by the court, the creditor can't use enforcement, like bailiffs, against you.  

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last updated 16/08/07