Little bit of advice?

KH85

Hi,

A few years ago I got into debt (when credit was easy to get hold off - and i was young )

So I entered into a debt management plan - a few months ago stopped this plan and contacted all of my crediters too setup direct debits ect.... all is going to plan so far. (Why pay a % to the debt management company! )

When I entered the debt management plan, I stopped playing an overdraft and opened a new account - this overdraft then defaulted (2007). The balance will be paid off in 2.5 years at the rate I am paying it BUT i could afford too pay if off NOW.

Would it be good for me too pay it off? OR will it not matter and be better too just let it carry on?

It will stay on file for 6 years from default date wont it? So is a 'settled' default better?

Thanks for your help,

Karl

fishty

Wont you feel better knowing that the debt is off your back??? I wouldn't want a debt hanging over my head if I was in a position to pay it off.

Also why don't you make them an offer of say 30% to pay it off now. They will probably knock it back but just keep offering a little more until they finaly accept your offer, saving you £££'s.

Your default will stay on file for 6 years weather settled or not but settled does look better! It may make the difference at a later date.

Mothermercury30

Hi there, and welcome.

I'm no expert, but I would almost certainly have said that a settled default is better, and the fact that it has been settled will be recorded by all the credit reference agencies.

You're right- the fact it's defaulted will remain on your file for 6 years, but ask yourself- if you were going to lend money or give credit to someone, would you lend to the person who still has the default, or the person who has settled the default?

KH85

Thanks for the advice and the warm welcome

I'll see if i can find a template letter somewhere for a % settlement and see what responce i get..... but you are right I think i would rather have it off my back!

Thanks again,

Karl