never ending story?

free_me_3

As a naive 18 year old I managed to get in to debt with a couple of store cards, a credit card (which I only had to clear my store cards, and then maxed the lot!), overdraft, spending money I didn't have with a switch card and pretty much anything else I could get away with. I've always worked but spent way beyond my means... so I stopped paying.

I Ignored all the letters and phone calls, moved house several times and hoped I could just disappear and that they'd get fed up and leave me alone.
Which to a certain extent they did, my switch card was confiscated and my folks lent me the money to clear my overdraft (they knew nothing of the others). And I spent a good few years in a state of denial but I saved for everything I wanted to buy, I had no choice.

I'm now 28! and up until very recently hadn't repaid any of this cash... lets face it after 10yrs I didn't know who I owed, they'd been passed on to so many companies.

Its no surprise I cannot get credit at all and was even refused a joint account with my fella as his squeaky clean record would suffer too.
We're now buying our first house, but although I will be contributing financially and physically it will all be in his name.
So I thought it was about time I accepted responsibility for myself and paid back what I owe, despite being petrified at how these debts had probably multiplied over all these years.

Coincidentally, out of the blue I received a letter from a collections agency regarding an old visa debt which had risen to £2,100, over double my original credit limit but half what I'd imagined it would be. They said If I paid half that amount in full they would accept that as full payment and settle the account, so again I borrowed from my nearest and dearest and paid it off.
I felt a huge weight had been lifted, especially after my final installment to my fella, but there will still several more old scores to settle.
So I paid £2 each for my credit reports, I'd been to afraid before It'd be an open invitation to the bailiffs!
To my amazement they were virtually blank! Experian had electoral and bank account info which I had to give them for the report and Equifax was totally blank. Had my dreams come true and all was forgotten? I tried my luck and applied online for a mobile phone, turned down followed by an egg card, also refused. What did they know that I didn't?

So I've continued in my efforts to clear my name and conscience, I contacted my old store card provider who gave me the collection agencys number. They'd bought my debt in 2001 and it was only £900! Again a fraction of what I dreaded it would be and again they would reduce it to £660if I paid in full. Which this time I did, with my own money, I've had to really tighten my belt but wow what a great feeling to know its now gone for good.

I've since read all kinds of info saying because I didn't pay or accept the existance of these debts for more than six years they are unenforcable, not affecting my credit rating at all, and as good as disappeared... surely thats too good to be true, but they don't appear on any of my credit reports even the ones I've paid. The others I'm powerless to pursue as I really don't know who I owe, and am waiting for them to contact me, which according to this they may never do. I can't afford to pay any more lump sums, nor do i want it over my head in our new place so I truly hope they don't.
I would never have any credit cards again.. lead us not into temptation and all that. But would like the security of a joint mortgage and of course a jazzy phone!

Now you've read my life story! I hope its encouraged some of you to tackle your debts now as they're probably not half as bad as you think, Surely if you leave it long enough they can't actually be written off like this? I doubt it myself, is there another explanation for my clear reports and refused credit? Can I clear my name honestly and earn the right to be trusted with a loan again? And if not what do I do, I'd much rather use the cash on the new house after all!
Thankyou for sticking with me! I hope somebody who reads this has a happy ending to my story or at least one of their own.

CLAPTON

i not really sure if you are asking a question but

the reason your credit report are empty is that your debt defaults drop off after 6 years.

and yes it is true that if you have no contact with your creditor then after 6 years unsecured debts are no longer enforceable,

you may find this link of interest

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

Broken_hearted

It's not really a happy ending just means the bank have taken money off other people in higher charges and interest rates.

duncans-mum_2

I think its great that you felt the moral obligation to pay these outstanding debts from so long ago. I'm sure there is a lot of people who would be seriously torn on the decision if you are not legally obligated after six years me included) so I think that should be applauded. Could it be if your credit file is blank then this could actually be working against you with trying to get more???
If you still want to sort out the remaining (and manage to find out who they are) you coming to them with a payment may be able to reduce you full and final figure even lower. In theory, by this time the money to them seems a lost cause. Or you may not have any more and over time you have blown what you thought you owed out of all proportion

Sea78

Could be lack of credit activity that you were refused, but you wouldn't want an egg card, right ?
Well done for trying to rectify your situation and for commiting yourself to not getting into debt again.

Regarding mortgage...in my experience the lender doesn't tend to take into account the problems over six years old, especially if they don't show up on your credit reports.

Sea x

free_me_3

Thanks to everyone who read and responded to my story, I wasn't looking for praise or sympathy, I spent all that money after all, and I appreciate that compared to others my debts seem tiny but its all relative to your earnings and lifestyle isn't it?
I was hoping to get (and did get) some suggestions from people with similar experiences and advice on speeding the process up, but If theres one thing I've learned its to be honest and face up to your problems and obligations.
I'm certainly not looking for an easy way out, but as one member said how many people would hand over the money if they didn't have to? Isn't this site about beating them at their own game? I don't believe banks charge higher interest to the majority, due to a minority of non-payers, thats why they have extortionate rates for high risk borrowers isn't it, they know you have no choice but to pay.
My lack of current activity may well be responsible for my latest refusals thats what I was hoping to clarify and as several of you suggested this I shall look into it further. Cheers!
I NEVER want a credit card again, (the egg thing was for research purposes only ;->) I would rather go without than run the risk of making the same mistakes, I'd like to think I'm not that naive girl anymore but I'm not prepared to take the chance, there too much at stake now and not just myself to consider.