Defaults

daphbec · 2 March 2007 at 1:01PM

Hello Everyone

I don't mean to come across thick put could anyone explain to me what a default is?, how you get them?, how long they last? etc, etc???

Thanks to anyone who can explain!!

lonely_2 · 2 March 2007 at 1:33PM

you're not thick. it's just that these things are never talked about until they affect you. i didn't know what this was either until recently.

a default is the term used to mean that you've broken the terms and conditions of a contractual agreement with a creditor. a default can be recorded on your credit file if you start making reduced payments to a creditor, stop payments altogether, or make too many late payments (basically once your account falls under a certain level of arrears). it will stay on your file for a maximum of six years from the day it's entered and will negatively affect your credit score in that period. if a default has been entered on your file incorrectly, you can have it removed by disputing it. however, if entered correctly, you can have "satisfied" placed beside it once your debt has been settled.

you can have numerous defaults on your file - in principle one for each debt of which you've broken the contractual terms.

does this help?

daphbec · 2 March 2007 at 1:53PM

Thanks very much for that lonely, much appreciated, I luckily do not have a large debt, although i suppose a debt is a debt, big or small., however my partner has a large total debt which we are trying to pay of. We'll get there, my OH isn't very good at talking about the isssue, he gets all flustered and it is usually easier to avoid the conversation and just get on with making the payments. I think he feels embarrassed and realises that it does hinder OUR life somewhat, He raked the debt up in his early 20's in a matter of years before i met him but it will take a lot longer to pay off. Shouldn't go on too much about it but sometimes it helps.

learntmydebtlesson · 2 March 2007 at 2:33PM

Hi there

That's a great reply about what a default is, I too didn't have clue what this meant until I got one! Now I am counting down until it's removed from my file in 4 years time! I would have actually made even more effort to pay if I knew what an affect it would have, oh well - you learn from your mistakes! As for your OH's finances, perhaps he can create an Excel spreadsheet and you can read through when he's out one night to save him embarrasement then it may be a step closer to him opening up and talking about it. Good luck!

Defaults

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