Question re Defaults

Arwen

I am starting a Debt Payment Plan, which will last for 8 years. My creditors have already defaulted me recently, which is fine.

My question is,do the defaults stay on my file for the 6 years even though the payment plan won't have finished? Or do they stay for 6 years after the payment plan is finished ie 14 years.....:eek:

I don't intend to get anymore credit,learnt my lesson the hard way,but it would be nice not to be a complete financial pariah for the next couple of decades.

Sorry-I tried a search on the boards and couldn't get a definitive answer on this

Tuscan

defaults stay on for 6yrs from the original default date then drop off..

Tixy

Hi

Its 6years from the date they were originally entered and then they will go altogether, even if you still owe them money. So your credit file will actually start to improve towards the end of your DMP. Once the DMP is actually finished then you can start gradually building up a good credit history (usually by using a sub prime card to start).

One thing to be aware of is that occasionally if a debt is sold to a debt collector they may mark a new default date (the date they take over) they absolutely should not do this and if you find they do then you would need to appeal it and get it corrected back to the old date (its not that common but worth keeping an eye out for if you check your credit file every year or so).

Hannah_10

Think of it like pushing files along a 72-file-long shelf.
There are 72 months in 6 years, if each month a new file goes on the front of the line then as it does the oldest file falls off the end of the shelf and isn't there anymore.

It's sort of a bit like that, at any given time nothing over 6 years old is on the file. (Or at least- nothing should be, there are occasional mistakes but you can get those corrected easily enough).

Sunnylooloo

Tixy wrote: »

Hi

Its 6years from the date they were originally entered and then they will go altogether, even if you still owe them money. So your credit file will actually start to improve towards the end of your DMP. Once the DMP is actually finished then you can start gradually building up a good credit history (usually by using a sub prime card to start).

One thing to be aware of is that occasionally if a debt is sold to a debt collector they may mark a new default date (the date they take over) they absolutely should not do this and if you find they do then you would need to appeal it and get it corrected back to the old date (its not that common but worth keeping an eye out for if you check your credit file every year or so).

Tixy I never knew that! thanks and I will def keep an eye on my report for any sneaky defaults

Actually I wasn't sure at all about how long the defaults stay - so I have learnt a bit from this thread! so thanks all!