credit card unpaid debt over 4yrs ,worthiness to pay off now ????

sulagh

Hi all,Thank for reading this .I would appreciate your suggestions if you have any .
The story:I had a capital one credit card with debt of £1500 back in 2007 ,lost job& could not afford monthly repayments, so asked them to lower down but could not reach the agreement .So I stopped repaying them .Since then I have not paid them a penny .Now I can afford to pay the whole balance off .Is it worthiness to pay off now ?Does my credit score get better and can apply for a mortgage or other credit /loans after paying off ?

Please drop me some advice here .
Thank You

Gromitt

It will always look better paid off than an outstanding debt. May still take a while for lenders to "trust" you though, but far better chance than before.

paulwellerfan

if you had the money- pay the debt.
simples....

rartherinv

No way in hell would I pay it If it were me I would feel that by refusing to negotiate they did not show any morality towards me when I lost my job and was at breaking point, so why should I pay them back a penny when I don't have to???

Apart from the moral dilemma above which most other posters seem to disagree with me on, you should be aware that the debt will be statute barred within 2 years if you have not made an official response acknowledging that the debt is yours and it will drop off your credit file on the 6th anniversary of default, however if you settle the default it will continue to show that you defaulted on an agreement for an extra 6 years from the settlement date, so what kind of sadist would want to do that? A settled default is the same as an unsettled one to a prime lender... it is just a default. Don't let it ruin your life for another 6 years.

If it was me I would rent a venue and have a killer party! I would not forget to make a toast to Capital One who kindly paid for it when they refused to negotiate with someone who had just lost their job :beer:

dealer_wins

rartherinv wrote: »

No way in hell would I pay it If it were me I would feel that by refusing to negotiate they did not show any morality towards me when I lost my job and was at breaking point, so why should I pay them back a penny when I don't have to???

Apart from the moral dilemma above which most other posters seem to disagree with me on, you should be aware that the debt will be statute barred within 2 years if you have not made an official response acknowledging that the debt is yours and it will drop off your credit file on the 6th anniversary of default, however if you settle the default it will continue to show that you defaulted on an agreement for an extra 6 years from the settlement date, so what kind of sadist would want to do that? A settled default is the same as an unsettled one to a prime lender... it is just a default. Don't let it ruin your life for another 6 years.

If it was me I would rent a venue and have a killer party! I would not forget to make a toast to Capital One who kindly paid for it when they refused to negotiate with someone who had just lost their job :beer:

Its that attitude that makes me feel very sorry for your friends and partner!!

cif85

rartherinv wrote: »

Apart from the moral dilemma above which most other posters seem to disagree with me on, you should be aware that the debt will be statute barred within 2 years if you have not made an official response acknowledging that the debt is yours and it will drop off your credit file on the 6th anniversary of default, however if you settle the default it will continue to show that you defaulted on an agreement for an extra 6 years from the settlement date, so what kind of sadist would want to do that?

Completely untrue.

The default will drop off 6 years from the default date.

OP, please do what is right and contact them to arrange payment. Given that it is 4 years old they may be willing to settle the debt for a percentage of ehat is owed.

chanz4

Its okay they have another 2 years to get you a ccj, is it worth the gamble>

Ben8282

The default will drop off after 6 years regardless of whether you pay it or not.

If you do nothing for the next 2 years the default will disappear, the debt will become statute barred and you will still have the money.

Is there a reason why you want to pay now? Are you being pressured in some way by a dca?

sulagh

Thanks for Your efforts everyone .The reason I want to pay off my cc debt is to apply for a mortgage .So Even I pay it off , I am not sure lenders will give me a green signal .
Any suggestions would be great.
Thank You

Tixy

sulagh wrote: »

Thanks for Your efforts everyone .The reason I want to pay off my cc debt is to apply for a mortgage .So Even I pay it off , I am not sure lenders will give me a green signal .
Any suggestions would be great.
Thank You

If you don't pay it off you have no chance of a mortgage with an unpaid default still on file.

Once paid considering its age and fairly low balance you may be able to get a mortgage. You'll probably need to approach an independant mortgage broker with a copy of your credit file to see who they suggest might lend to you, it probably won't be the big name high street lenders and you may well find that you need a larger % deposit than someone who can borrow from a mainstream lender.

McKneff

OP Tixy's is the best advice on this thread, you would do well to heed it.

Some posters, well one in particular has absolutely no idea about defaults so ignore them.