Where to start with small debt.

Dom_Medic

Hey folks, first time poster here.

Basically I've been away for a few years living in a different country and on tour and the likes so I havent really paid much attention to whats been going on at home. But I've come home now and recently applied for a mobile phone contract.

I was declined, so I went and had a look at experian and found debt that I have totally forgotten about. The amounts aren't huge but they have all defaulted and are now from companies I have never heard off.

I know this is my own fault because I moved country and totally forgot about them all but now that I'm back home I wanna start getting all that back on track and try to eventually rescue a credit rating that has been thoroughly destroyed.

Here are the amounts

AKTIV KAPITAL (BCRD) - Bank - Default - £602
LOWELL PORTFOLIO I LTD - Communications - Default - £565
LOWELL PORTFOLIO I LTD - Credit card / Store card - Default - £787
CABOT FINANCIAL (UK) LTD - Credit card / Store card - Default - £435

I havent even heard of half those companies, and while I recognise the cards and stuff my limits where never anywhere near those amounts. Now I don't earn a massive amount each month, but the fact that I'm in the Army means I pay very little for food, I dont pay rent nor do I have any other charges such as water/electricity.

I get paid around £1,200 each month and I would say my out goings account for my £200-£300. So basically I wanna know what I should do, should I just straight in and pay it, all, and if so under what agreement, should I try and aim for settlement figures or should I get charges taken off or what?

Any help you can give would be greatly appreciated.

Dom.

Marisco

Hi Dom, welcome to the boards, first off I'd find out when they were defaulted, when you say you've been out of the country for a "few years" how long is it? They also fall off your credit report 6years after they were first defaulted. Debts over 6 years old (5 in Scotland) become statute barred, meaning they cannot take you to court for them. So basically you can tell them to do one!! Unless there is a CCJ on them. The ones you've mentioned are all DCA's (debt collection agencies) Are you sure they are all yours? It will be worth asking for a credit report from the 3 main agencies : Equifax, Experian and Credit Call (I think that's what it's called) it'll cost you 2 quid a piece. Once you know how old they are, you'll be in a better position to decide what to do. Good luck.

KingElvis

Companies you've never heard of? those are all very familiar names to people on here

Yep, get them to prove the debts first before you do anything and don't make a payment or acknowledgement on anything over six years old, you start the ball rolling again and they will try all sorts of tricks to get you to do that.

Good luck.

mcjordi

request the cca's and then decide after the people on here have a look at them minus personal details of course..

are the debts incuring any interest? if so pay them off first.. as they are with DCA's then they are likely to accept a !!!!!!

Dom_Medic

well according to my credit report from Experian these are the start dates.

AKTIV KAPITAL (BCRD) - Bank - Default - £602 - STARTED - 15/08/2003

LOWELL PORTFOLIO I LTD - Communications - Default - £565 - STARTED - 31/07/2006

LOWELL PORTFOLIO I LTD - Credit card / Store card - Default - £787 - STARTED - 08/03/2007

CABOT FINANCIAL (UK) LTD - Credit card / Store card - Default - £435 - STARTED - 18/04/2007

Funny thing happened yesterday though. I got a letter from a debt company about the vodafone bill the £565. I was gonna try and work something out with them, but when I gave my postcode and date of birth they said iot was a mistrace and that they had the wrong person. But I know its my debt cause its in my credit report with the right postcode and D.O.B.

I dont think the amounts are incurring interest, I'd love to get rid of them and if I'm honest with myself I have the funds to do it, I just need to bring myself to pay for the mistakes I made years ago lol

podperson

You could request ccas from them all, although if you know they are your debts and are looking to get rid of them would suggest maybe looking at making full and final settlements to them. There are some good templates on the National Debtline site and since they are all with dcas now would start with pretty low offers and see what they say. If you want to try reclaiming charges on the ccs first there are guides on the Reclaiming Forum.

Marisco

Hi Dom, well as Nike say - "just do it";) If you know they are yours and can afford to pay them, then do as Podperson says, write to them offering a low figure and take it from there, but make sure you get everything in writing before parting with any cash!!!