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What to do with these defaults
brown2577
Posts: 7 Forumite
Hi
I made a lot of mistakes when I was younger with credit and now my credit files are a mess. I realise this is fully my fault!.
I'm repaying 3 of 6 defaulted credit accounts. They all defaulted around 2004. Luckily I have no CCJ's.
I'm now quite stable with money and have a subprime credit card and loan as well as a vodafone contract, these were taken to try and improve my rating.
My first question is about the date these will dissapear from my file. I've read it is 6 months from date of default regardless of wether settled or not, but i've also heard if I was to start paying one of the defaulted accounts it would be another 6 years from today.
I'm very aware that 6 years is almost up, what happens to the outstanding debt? I want to get my rating back to satisfactory but what is the best strategy to do this?.
Another question, one of the payments I make monthly will probably take me 20 years to pay off, after the 6 years isn't the debt deemed uncollectable?
Many thanks for your help
I made a lot of mistakes when I was younger with credit and now my credit files are a mess. I realise this is fully my fault!.
I'm repaying 3 of 6 defaulted credit accounts. They all defaulted around 2004. Luckily I have no CCJ's.
I'm now quite stable with money and have a subprime credit card and loan as well as a vodafone contract, these were taken to try and improve my rating.
My first question is about the date these will dissapear from my file. I've read it is 6 months from date of default regardless of wether settled or not, but i've also heard if I was to start paying one of the defaulted accounts it would be another 6 years from today.
I'm very aware that 6 years is almost up, what happens to the outstanding debt? I want to get my rating back to satisfactory but what is the best strategy to do this?.
Another question, one of the payments I make monthly will probably take me 20 years to pay off, after the 6 years isn't the debt deemed uncollectable?
Many thanks for your help
0
Comments
-
Hi There -
I'm not 100% sure, but I don't think the debt disappears after 6 years while you still owe...
My understanding is that the 6 years rule is that if no one has attempted to contact you about the debt in 6 years and you have not deliberately sought to avoid contact regarding the debt, the debt becomes unenforceable in court (the same reason that when applying for bank charges to be refunded, you can only go back 6 years)
Also, 6 years is how long things generally stay on your credit file, so I would assume defaults would go after 6 years - although I'm not sure if it being settled or unsettled makes a difference (I'm sure more experienced & knowledgeable DFWs will be along to advise!)
If you've acknowledged the debt within the last 6 years, e.g. by paying it, corresponding about it, it is still your debt and still enforceable.
Hope that's helpful0 -
Hi
The debts for which you are making payments are enforceable.
The other three become unenforceable 6 years after your last payment or written acknowledgement of the debt. if you defaulted in 2004, they may well become unenforceable later this year and drop off your record early next year.
the others depend a bit on what the DCa are listing, but may well drop off next year.
Hae you considered saving up and seeking a full and final settlement?The person who has not made a mistake, has made nothing0 -
The outstanding debts i'm not paying total about 10K, and i'm pretty sure they would offer me a reduced sum to settle them. I'm happy to do that as i'm desparate to be debt free. However if I contact them now, Im wary that the defaults will stay on my file for another 6 years.
If none of these creditors have sought a CCJ against me in the last 5 years are they likely to do so now the time is running out?0
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