Advice

Media_2

I'm hopeing someone may have some advise for me, I have a poor credit history, about 2 years ago i lost my job and defaulted on a £5000 personal loan that i have not paid anything towards since. I am living at a new address and so have not heard anything about this for well over a year now but am in a better position to try and re build my credit, any advice on how to start would be great

StuTheDon

Hi - first thing is to get hold of a credit report from Experian or Equifax - I think each has a 30 day trial. This will let you see what, if anything has been registered against your account.

Next - you need to make contact with the loan company for the £5000 and discuss arrangements to pay it back. Once you have paid it back, it will be marked as defaulted but settled on your account. It will dissapear completely after 6 years I believe.

Otherwise if you have a contract phone or credit card make sure it is paid on time and fully each month to rebuild your history.

Media_2

I have checked my credit file and it does appear as a defaulted agreement, the figure is now much higher than the loan amount but i guess that is to be expected?
Its a larghe amount of money and it will take me a whilke to pay it off, is my only option to make contact with the loan company and start paying it off, and then wait another 6 years after the balance is cleared?

POSSETTE

They will find you more than likely within the next 6 yrs.so its best that you arrange a payment with them instead.It will also mount up too,and the loan will get bought by a debt collection agency and then bailiff are involved.Its better to step up to it.

Media_2

Yeah that sounds like the best thing to do, but as far as i am aware the defalut notice will be removed from my file after 6 years regardless of whenever i pay it or not, so i guess my point is why should pay it if it has no effect on the end result?

Media_2

Plus i'm pretty sure it was purchased by a debtcollection agency about a year ago

gerrynimo

Media wrote: »

Yeah that sounds like the best thing to do, but as far as i am aware the defalut notice will be removed from my file after 6 years regardless of whenever i pay it or not, so i guess my point is why should pay it if it has no effect on the end result?

Because you borrowed the money, and agreed to pay it back when you took out the loan?
Because it is the right and moral thing to do?
Because you will be hounded for this money for considerable time to come?

Take your pick... :rolleyes:

Media_2

I completly agree with all of those points, i understand i have an obligation to re pay the money. I made the mistake a while ago for reasons i couldn't control, but now in the current siuation i am in, and looking at it from a purly financial standpoint, i don't see if why my credit history is going to be the same for next 4 years regardless of whether i get in contact with them and start to re pay the orgianl loan i should do it?

Also if i start repaying the loan it will take me longer than 4 years to clear it so presumably the default notice will be on my record for even longer than if i duck it??

These are all just questions, i am honestly not trying to run away from the debt, and will most likely make every effort to repay the loan.

On another point is there any advice on how to go about making contact and agreeing a re payment plan?

hoggums

If you ignore the debt it will grow. Have you considered that when they do catch up with you you could end up with a CCJ on your report.

It's not going to just disappear after 6 years. That is naivety in the extreme.

Media_2

Ok, well that is actually of more help, the reson i was asking was because i didn't know! Naviety is when the answer is obvious, but as it wasn't to me i asked the question!

Do you have any advice on how to best start dealing the problem then?

How do i find out who has the debt?
How should i contact them?
What i should say?
Etc