Default Debt

d.v.b

Hi, after browsing through this forum I have a few questions as I was not able to find the answers that I needed.
I am a full time student, living at home, working part-time, therefore I do not pay rent/mortgage or any other monthly bills. I have about 2200 pounds debt according to creditexpert, 5 of which are default. This is because I have been irresponsible and took out credit cards which never bothered to pay off afterwards as I always did everything I could to run away from it. Now I feel I should face up and pay it off but how would I go about doing this? I have received a training contract in New York once I graduate and would like to have it all settled before I leave so that I can start a new life without any debt haunting me.
Could you please give me advice on how to go by paying it off and if i do will my credit report be clean once I move away (not to get into more debt but to be able to rent an apartment etc) ?
Thank you

Hannah_10

How much could you pay off a month if you really tried?

d.v.b

I could pay it off in full, the whole of 2200 pounds but I don't know how to go about paying it?
And if i do, will my credit report be clean by the time I move to NY? (in September)

RedTulip

d.v.b wrote: »

I could pay it off in full, the whole of 2200 pounds but I don't know how to go about paying it?
And if i do, will my credit report be clean by the time I move to NY? (in September)

What date is the default and who registered it? Settled or not it'll stay on your file for 6 years, although a settled default looks slightly better than an unsettled one.

Hannah_10

In that case I suggest you try to make a settlement. A settlement is the fastest way to clear a debt. If you wanted to pay the lot you could get the addresses of the companies you owe from your credit report and send them a cheque or bankers draft.

If you wanted to try to negotiate lower settlements you need to go to National Debtline's website and look up thier template letter. In your position, you want the first offer you make to be accepted, the debt has been festering for ages, so offer them 80%. That sounds likely to be accepted. This is hassle though. It would be simpler just to pay it.

Items on your credit files stay there for 6 years. It will be marked on your file that you settled the debt, either fully or partly too though.

You do know that there are two other credit reference agencies don't you? They don't all have the same information. You need to see the other 2 too.

d.v.b

Thank you for your replies and advice.
I will do as suggested and settle the debt in full. However, what I am concerned about is being able to get an apartment in NY when i move there. I have read online, and from what I understand they do not take into account UK credit history as their credit history is linked to their social security number. I am just wondering if anyone knows whether it would be better to open an account with a US bank and try to establish some sort of history before moving over there or should I try to open an account with a UK bank that has US branches (eg HSBC)? Any advice would be very much appreciated.
Thanks

DrEmma

I lived in the US for a couple of years a few years ago. I opened a bank account when I moved over there (you'll need ID so I doubt you'll be able to do it before you go). When it came to renting a flat, I had to give the names of two references to the landlord as I had no credit history over there. The referees vouched for me & I rented the flat no problem. I wouldn't think your credit history over here will affect your ability to rent somewhere. Hope that helps.