What happens if you can't repay?

ViolaLass

GotNo£ wrote: »

Another thing is that since the lender has already passed on the debt to those collection agency types there's no point in dealing with the lender any more is there?

So what's the first step to getting this written off (is it the 'debt collection' agency I now have to spaek to)? As like you said, to pay back the money at a very low rate will still screw my credit rating, for 6 years, so that kind of defeats the whole point in paying so your credit rating doesn't get screwed.

Your credit rating is going to be trashed either way so all you're left with is the moral obligation to repay.

immoral_angeluk

GotNo£ wrote: »

Another thing is that since the lender has already passed on the debt to those collection agency types there's no point in dealing with the lender any more is there?

So what's the first step to getting this written off (is it the 'debt collection' agency I now have to spaek to)? As like you said, to pay back the money at a very low rate will still screw my credit rating, for 6 years, so that kind of defeats the whole point in paying so your credit rating doesn't get screwed.

The only way to get it 'written off' if you were mentally capable of taking out the loan would be through insolvency such as a composition order, debt relief order, IVA or bankruptcy. These will trash your credit rating greater than any DCA BUT they have a definite end and your credit file would be clear 6 years for the date of the order.
The only other way to write it off would be through negotiating full and final settlements with a DCA, but this would only write off a proportion of the debt and you have to be very careful to ensure they aren't able to come back and chase you for the rest in the future.

You can still deal with the lender so long as they haven't sold the debt on, but it depends on the lender as to their normal policy. It helps to speak to a debt advice agency such as CAB, CCCS or National Debtline though as they will be able to help with the negotiations and generally lenders may ask for you to speak to one before they will consider offers.

RichGold

ViolaLass wrote: »

Your credit rating is going to be trashed either way so all you're left with is the moral obligation to repay.

Not only that, but the warm fuzzy inner feeling you get from knowing you're doing the right thing, and not shirking your responsibilities which it seems this guy is obviously trying to do.

@OP, there is no way to get this "written off". If you have made no payments on it you could hide under a Spanish rock for 6 years until it becomes statue barred, but it would still show as unsatisfied.

All you've done is ensure no-one except the very nastiest people will now lend to you, at incredible rates of interest.

GotNo£

Thanks for the advice people (of course ignoring the condescending and judgemental know-it-all).

So I'm coming back this (almost) week. Although looking at the state of the UK at the current moment I'm already regretting it.

Still I can always leave again - perhaps run back to that rock on the costa del crime (where's the rolling eyes smiley when you need it?)

paddyrg

One thing to remember with bankruptcy - even though it is the ultimate black mark for 6 years, when it goes, it doesnt't mean you're creditworthy again, it means you no longer have the mark against you, but no credit history whatsoever, so you would be unable to get any credit worth speaking of for a few years anyway, and the lack of history will tip off a savvy lender that you were a bankrupt and may mean you are treated differently. Just in case that helps

michael1983l

I do not have the time to read the whole thread but I can answer the topic question. It is common law in the UK that creditors can only ask their lenders to pay back as much as they can afford. If they try to force you to pay back more than this then you may have recourse to action against them.