What actually is the point???

Fabulouso

Hello,

I am SO determined to pay off my debt. I got into debt when I broke my back in 2009 and now I am walking etc again I am sooo determined to put it all behind me...

however (lol)... I have found out, on my credit report there are defaults (no surprise) and once I pay the bill or setlle it, it will still remain as a defaulted account on my file although will show with an update as settled or partially settled. This means that my credit score will not actually rise until 6 years after the default, (so I have 4 more years...) so my credit score wont rise until the default has been removed

So my question is, what is the point in paying it off then? Obviously I get that I owed it therefore I should pay it, but in terms of credit report etc its not going to help me struggling away to get it clean anyway?!?!

I have been all organised so far, 4 folders - one with my payment plans, one with debtors I havent contacted yet, one for debtors I have contacted and am waiting for a reply.... and one which is for settled/paid off accounts (which is empty until tomorrow haha- so excited to get it full!!)
It just all seems a little pointless for now, I know I wont be chased for the debt once its paid but still.... hmmmm

:A

Tixy

The thing to consider is that if you keep up with repayments as much as you can afford then your creditors will be much less likely to consider starting court proceedings. If you don't pay and they take you to court in a few years time, your credit file will be damaged for much much longer (as the CCJ would then stay on file for 6years from the date of judgement).

I think everyone has those types of days where they wonder what the point of it all is, but think of how great it will be when they are all paid off and all your money is your own again.
What is your estimated debt free date at the moment?

rdchick

I am sorta in the same boat to be honest, I don't think I have any defaults (I need to check Experian) but now I have paid the ones that were WAYYY overdue I'm all up to date and feeling a little bit apathetic about it all

Fabulouso

Thank you both, its nice to know Im not the only that feels like that!

I havent got a debt free date and havent even considered it, but it sounds like a good idea - as something to look forward to. At the moment I am just saving to offer F+F's as possible.

Fingers crossed, although I have a charging order I am not sure if I am going to offer a full and final on, I posted a thread on here and have spoke to a few people about it- just not sure if its going to be worth it really, they are only getting £1 a month now but they are still guarenteed the money... hmm.. lol

Thanks again though :-)

edinburgher

You recovered from a broken back - that's genuinely inspirational! Paying off debt should be a piece of cake in comparison :beer:

Also, it's not correct that your credit score won't improve until the defaults etc. come off your report, it will get gradually better with time (although it will no doubt take a leap once they do fall off).

I defaulted in 2006 (debts paid back now) and I managed to get a 'real' credit card again, as well as a mobile phone from one of the pickier providers (albeit with a deposit). I achieved this through a) paying off the debts b) rebuilding my score using a prepaid credit card and subsequently, a sub prime card and c) keeping my credit file up to date seems to have helped as well.

So it does get better and the damage isn't permanent - chin up

Fabulouso

Thank you!! Yeah it was a struggle but I am just thankful it wasnt worse :-)! Thank you for your advice edinburgher, I really appreciate it. I'll bare all of that in mind once I have...finally... paid it all off lol