Few Questions Regarding Unsecured Debt.

swinjames

Hello people,

Hope you can help me with a few questions. I'm 26 years old, in steady employment, however I have a previously sketchy credit history due to being at university - there are many reasons for the debt.

I've kept my head in the sand since 2005/2006 and i've not really done anything with any of them. Since this time the debts have passed from debt collector to debt collector and most of them defaulted.

I have the following debt:
£800 - HSBC credit card
£2500 - Lloyds TSB Credit Card
£1200 - Lloyds TSB bank account
£1200 - HSBC Current account
+ two or small loans

Most of them defaulted in 2006?
I have wanted to pay them, but i dont know how to go about it as i read never to pay a debt collector..

Do I write to the original company who had the debt?

some have sent me offers to settle for a much lower fee, but is this just because they are desperate to get some form of payment before it drops off my credit record?

Am I better off sitting tight until it 'drops off' my record, or are there steps you recommend I take?

I live in rented accomodation on my own so it's not as if it can be made into a secured loan or anything

do I offer a monthly amount to settle? who with? the debt collection agency or the original company

Any advice appreciated

Cheers
James

Tixy

You'll probably find that all your creditors have sold the debts now so you will be unable to pay the original companies.

Are you currently receiving letters from any debt collectors?

You say they mostly defaulted in 2006 - is this around the time you stopped paying them? or did you stop paying them before then?

One final question do you live in England/wales or scotland (as the laws vary).

saltnvinegar

Hi James

Initially do not contact any of your creditors - the second you do that they will smell blood and the debt collection activity will start all over again and due to the proximity of the debts to being statute barred then they will possibly be aggresive in their activity.

Have you done a recent check of your credit files with all 3 credit reference agencies?

I ask because as you mention you are renting it is possible that if you have moved house in the last couple of years then you may have a CCJ that you are not aware of so you need to check this first.

Please do not be worried unnecessarily by this, but check your credit file so you have a clear picture of your status.

If a debt collection agency has offered you a reduced settlement then this would suggest that they have purchased the debt for a nominal sum so may be worth exploring but do not contact them at this point otherwise you will open up a tin of worms if things have gone quiet.

Best

SnV

Tixy's question on where you live (England or Scotland) is very important as the statute barred timeframe is different.

swinjames

Thanks Guys,
I live in England...

I have membership with both experian and equifax and I can see:

Number of credit accounts (including those settled)8
Amount of available credit (excluding mortgages) £58
% of your total credit being used (excluding mortgages) 95%
Amount of outstanding debt (excluding mortgages and defaults) £1,342
Number of accounts overdue 0
Number of missed or late repayments in the last year 2

LLOYDS TSB BANK PL... Current Account Default £1,157
Defaulted On: 13/07/2009


HSBC BRANCH BANKIN... Current Account Default £1,284
Defaulted On: 21/09/2006

SANTANDER CURRENT ... Current Account Satisfactory £0


CO-OPERATIVE BANK ... Current Account Satisfactory £1,342


LLOYDS TSB BANK Credit card / S... Default £2,739
Defaulted On: 11/12/2008

CABOT FINANCIAL (U... Credit card / S... Default £849
Defaulted On: 01/12/2007

T-MOBILE Communications Satisfactory £0


HSBC BANK - CARD S... Credit card / S... Default £435
Defaulted On: 28/04/2006

Thing is, I know it's no excuse but I was a student and I kept getting charge upon charge on top of my balances, and then I set up arrangements to pay with them all but they kept eating up what money I did have, and then the downward spiral resulted in me leaving uni before commencing a 3rd year.

I'm pretty happy with how things are in my life, but I just don't know what to do with these.

I'm guessing because they are fairly low amounts individually, that's why they have been sold on and not pursued through the courts? Also renting I have no assets really..

I guess I will just have to wait for them all to 'drop off' my record before I can look at getting mortgages etc?

It'd just be nice to know my options really on moving forward, whether to actually do something or carry on until the time has passed

Oddly enough I just passed a credit check to rent a new property with the above on my record? wouldn't of thought this possible!