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

JimmyTheWig

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

I agree with Tixy. You stand much more chance if you pay it off than if you don't.

My morals are also in the "pay it off" camp, though I do have sympathy for the "punish them" camp. How much is the balance compared to what you owed them at the time of default? Have they been adding interest the whole time? If they haven't then it's probably worked in your favour that they refused to accept your reduced payments. If they have been adding interest the whole time then I think that morally you should only have to pay a reasonable amount (whatever that would be) given that they behaved unreasonably at the time.

But back to how it affects you.
Have you got any other credit at the moment that you use?
Are you able to get any?
I'm guessing with the default you may find it difficult.
So my thinking is pay off the default. Then use the improvement to your credit file that this gives you to help build your credit rating. Then in two years time you should be on target for getting a mortgage.
To build your credit rating, you could take out a credit card and use it every month for stuff you would have bought anyway and repay in full every month. This will show your future mortgage lender that you can be trusted. As it's something that may not be possible with the default unpaid, it's another reason to pay it off.

meer53

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:

The OP didn't say they refused to negotiate, they said they couldn't reach an agreement. That sounds to me as though there was an offer which the OP decided to reject.