Default, do i pay or wait?

KevinSAFC · 30 December 2009 at 12:47PM

Hi everyone, first time poster here so i am sorry if i have posted in the wrong section.

I have a default on my credit file dated May 2007 for a total of £368.

I know that any information on my credit file drops off after 6 years but this default still has 3 years left before that happens.

I have been down the line of disputing the debt etc and th e debt still stands but they have offered me the change to clear the debt for £200

Is it worth settling the debt and the default still be on my account but marked as settled or do i just wait 3 years?

Any advice would be very helpful

Thanks
Kevin

firestronaut · 30 December 2009 at 12:51PM

If you can build up a debt, you can pay it off.

£200 can easily be paid off, why wait three years?

If you clear the debt now, yes, you'll still have the default on your account, however the default will be marked as settled (please confirm this with them, as some companies are a pain the backside), improving your credit file for the next three years.

KevinSAFC · 30 December 2009 at 1:06PM

thanks for the reply.

What i am trying to find out is what difference does the default being marked as settled make on my credit file?

firestronaut · 30 December 2009 at 1:08PM

A big difference.

You'll still be defaulted but it will be marked as settled, showing that you're willing to pay back what you borrowed.

If you were going to lend money to someone and they told you they didn't pay someone else back, would you borrow to them?
Same situation but they tell you they eventually paid it back...

You may still say no, but other people wouldn't.

Same with companies.

Tixy · 30 December 2009 at 2:05PM

A settled default is much much preferable to an outstanding one as firestronaut says. Depending on what the original debt was for you also may want to consider trying to bargain with the debt collector to ask them to remove the default altogether if you settle the debt. (they are under no obligation to but occasionally they might - see here http://forums.moneysavingexpert.com/showthread.html?p=26867873#post26867873

Default, do i pay or wait?

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