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Should I pay off my interest free debt?

Rabbie
Rabbie Posts: 4 Newbie
in Debt-free wannabe
Hi Guys

I have £35k worth of debt, all but one which will the default will remove from my credit score in April, the others are not on my credit files. I am paying them £1 p/m, interest free.

Can any of them take me to court, while I keep up with payments?

I am not sure whether to save up and buy my first house or save up to pay them off?

Thanks,
Rabbie

Comments

  • Tixy
    Tixy Posts: 31,455 Forumite
    Yes they can take you to court at any time. Your £1 payments will be an informal agreement only. If they believe you can afford more (which if you are planning to save for a house you can) and you don't increase your repayments they may well take you to court.

    Just because they are no longer on your credit file does not mean you do not owe them the money still, you can be taken to court at any point from a few weeks after you stop paying the full repayment, up to 6years from when you last make a payment.
    A smile enriches those who receive without making poorer those who give
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  • DarkConvict
    DarkConvict Posts: 6,347 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    As Tixy has said, the agreement is informal.

    As such interest and charges could return, and they can take you to court at any time.
    Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.

    There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies
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