Ignored all debts... where do I start now...

KateC

I think I have been preparing for my light bulb moment for few weeks now.
It should have happened sooner, when I had more money, but I have just read someone say 'no debt is too big to pay off'.
Is it true ? I am thinking my situation is hopeless and don't really know what to do.

So here is my story.

I was in my first long term serious relationship, thinking we were going to get married. He cheated on me, we split up, I asked him to come back, he smoked weed, I saw it as drugs, he said I was crazy and we split up for good. he never had a job with steady income. I was stupid and took out store cards, credit cards, to make him happy. As a result, in by 2005, I was left with debts. I tried to pay back but somehow couldn't. I changed address and ignored everything. Some found me and started sending letters, some couldn't find me. Now I can even remember who do I owe what. I guess it's about £8k. I am scared to contact them. If I contact them, will I have to start paying huge instalments straight away ? I want to be debt free to be able to buy a house one day. I want to improve my credit rating and can't even open a bank account at the moment. the one I have is a joint account with that guy but I can't get rid off his name as apparently he needs to sign.

Thanks for your advice.

~Beanie~

The first thing I would do is get a copy of your credit report from all three credit reference agencies and see what is on there.

purple45

I'd start by writing down a list of everything you owe, and at what rate of interest so that you can prioritise. Then write down your income and a realistic list of outgoings. Once you know where you stand...don't panic...start reading all the posts on here for ideas of how to save money and how to bring in more money. It becomes addictive! I don't know about the bank account, you could try the CAB for general help! I don't know much, but wanted to reassure you that there are so many people in the same position, you're not alone and it will be okay once you've faced it.

KateC

Thank you both for replying ! I didn't think anyone would.

I will do the report and try to make a list of what I owe to who.
Thank you !!!

rising_from_the_ashes

OK, first of all, well done for having your LBM.

As others suggest, get a copy of your credit reports and see what's on them.

I'd also suggest opening a Basic bank account, transfering your salary and direct debits there - you need to be shot of the joint account with this guy. Choose one with someone you've no debts with (eg if you've a Lloyds loan, don't chose a Halifax bank account etc). You'll be able to check who's linked once you get your credit reports and see what's there.

Also, if you've got this joint bank account, you will be financially linked to your ex. You can apply to be disassociated with him http://www.thecreditagency.co.uk/credit-report/check-my/financial-disassociation.html the forms for all 3 credit agencies are on this page.

Re closing the account, I'm not sure how to get round the issue of him not signing - others with experience of this will be able to advise how to do this.

KateC

Thanks a lot.

I have just done a credit report with Equifax and have got 2 defaulted debts. I knew I had them and ignored them for long time. I want to be debt free but what do I do now ?
What do the 'defaulted' mean ? Do I ned to contact them and arrange to pay ?

I also have 2 county court judgements. What do I do to fix it all please ?

Both, defaulted debts and the CCJ are from 2006.

Thank you

theoretica

Also any debt which you have not paid anything towards for 6 years and not acknowledged may well be statute barred (if you moved to hide, rather than simply moved, this may not be the case). When a debt is statute barred you still owe them the money, but they can't take you to court for it. If this is the case with any of your debts you will want to be careful not to acknowledge them or pay them less than the full amount you owe.

If the account is not in the red the bank should let you take your name off without his signature. So you can walk away from that account and open a new one yourself.

rising_from_the_ashes

OK ...

What are the dates of the 2 defaults?
What are the dates of the 2 ccjs?

They will both "fall" off your credit report after 6 years from the date they were issued so if say Jan 2006, they will be gone in a few months anyway.

However, for the defaults, right up to the end of that 6 year period, you could have a ccj issued - which would then stay on for another 6 years.

How much are they for? If a small amount, it's probably worth paying them (if you can) so you can have the default status changed to "settled in full" which means a ccj can't be issued.

KateC

Thank you.

I have the following:

Defaulted on 23.12.2005 for £2321.00 but it says balance is £2721.00
Defaulted on 10.02.2006 for £3958.00 but it says balance is £4037.00
CCJ for £2576.00 on 30.01.2006
CCJ for £295.00 on 13.09.2006

Thanks for your help !!

kwaka12

KateC, I am in a similar situation and I have been wanting to get a copy of my credit report for ages,but what keeps putting me off is this,because I have moved address and left the debt behind,(almost 5 years now)if I now apply for my credit report,won't this just tip my creditors off to my whereabouts so they can start hounding me again,Im not sure on this point but Im sure someone could enlighten me/us,I won't even open a basic bank account,because Im too frightened of the consequences.I have 2 ccj's and although I am willing to pay these off in nice manageable monthly installments(im in a position to do this now)I keep thinking that once these people find out where I live,the bailiffs will be on the doorstep immediately wanting their pound of flesh and taking my goods without giving me a chance to sort a payment plan out.

KateC

Hi kwaka12,

Sounds exactly like my story. I haven't been hiding on purpose. I have got bills in my name, mobile phone contract, council tax, 1 bank account. I think if they wanted to find you, they would have. I think that if you show them you are willing to pay back, even if it's £5 a month you wont get anyone knocking on your door. I ignored it for so many years and was scared on so many occassions but it's so annoying. I have managed to save £5250.00 so I can buy a house one day but nobody will give me the morgage unless i have a good credit rating. I continue to save £250.00 a month so will have £9000.00 by end of next year for the deposit but MUST SORT OUT MY DEBTS. I know we will get there. I am happy to support you !!