To pay or not to pay?

lcredit71

Hi NG,

I am egularly repaying a loan with Barclays, which I am thinking of closing early. This is because I’d be paying something like £800 less in interest (@20%) and payment protection if I do (£3600, if paid according to the schedule, against £2400, if repaid now).


I also have a defaulted card with Barclays for £ 1,329. Barclays sold the card to Link on 30/01/2004. Link has never contacted me. I rang them today and ask about my outstanding debt. They say I can pay it off immediately if I want, and that the debt is still for £ 1,329 (why is this? No interests?). I am not sure I want to pay this debt, because I am evaluating what advantages/disadvantages this would give me.
Would it clear my credit file if I pay?
What consequences am I facing if I don’t pay? It wouldn’t be a major problem if I don’t get credit for some time (6 years?), as I’ll be staying abroad (Italy) for the foreseeable future.
Can this affect my credit rating in Italy?
Do agencies exchange credit information abroad?
And I am not sure on what sense it makes to be repaying the loan in that case!
My credit file is here:
http://lcredit.150m.com/Equifax/Equifax.htm

I’d need some advice on what is the best thing for me to do. I haven’t got the money for the repayments, and I would need to borrow from friends to repay these debts now.

Thanks in advance,
l.

gizmoleeds

This is a tricky one. Borrowing from friends or family can be cheaper but can destroy friendships (anyone who watches Judge Judy regularly will see this ).

You certainly need to have a plan though, and not paying is not an option. You need to making repayments or these debts will go out of control and you will regret it.

I'm not sure why you want to know how this will affect your credit rating in Italy - are you planning on borrowing more? If so I would really not recommend this.

Debt is a perfectly normal and acceptable thing to have but it must be managed effectively.

southernscouser

lcredit71 wrote:

I am not sure I want to pay this debt, because I am evaluating what advantages/disadvantages this would give me.

Do you mean your not sure whether to pay it all of at once or pay it at all?

black-saturn

If you don't pay your debts it will ALWAYS catch up with you in the end. It might help if you could give us a run down of all your incomings and outgoings so that we could give you a few pointers to help. You must pay these off some way or another though.

lcredit71

southernscouser wrote:

Do you mean your not sure whether to pay it all of at once or pay it at all?

Whether to pay it at all. If the credit file is cleared after 6 years, why should I do it? Apart from "conscience" reasons.

Reading the other replies it looks like they will always get back to me in the end, but what exactly does that boil down to?
Thanks

lcredit71

gizmoleeds wrote:

This is a tricky one. Borrowing from friends or family can be cheaper but can destroy friendships (anyone who watches Judge Judy regularly will see this ).

That shouldn't be the issue, they would be happy to help, and i can manage my finances more effectively now. The only issue is if it is *convenient* for me to repay these debts.

I'm not sure why you want to know how this will affect your credit rating in Italy - are you planning on borrowing more?

It's not just about "conventional" loans and credit cards. I may want to get a mobile, a mortgage, an account, everything ends up hitting my credit file and requires it to be in order. If UK entries show up in Italy I am out of luck. :think:

Thanks for your input.
lcredit71

zzzLazyDaisy

lcredit71 wrote:

Whether to pay it at all. If the credit file is cleared after 6 years, why should I do it? Apart from "conscience" reasons.
Thanks

In phoning up and asking for a figure, you have just 'admitted the debt'. That means they now have another six years within which to take you to court, coz time starts to run again from the date you admit the debt. Then a CCJ is registered on your file, and that stays for 6 years. So it could potentially be another 12 years before the debt disappears from your credit file, unless you pay it off first.

southernscouser

lcredit71 wrote:

Whether to pay it at all. If the credit file is cleared after 6 years, why should I do it? Apart from "conscience" reasons.

Reading the other replies it looks like they will always get back to me in the end, but what exactly does that boil down to?
Thanks

Because your liable for it. You have acknowledged the debt and by not paying it you are breaking the law.