Some clarification on defaults

pollywolly71

I know that a default stays on your file for 6 years, but I have been told conflicting things about when the 6 years starts/ends.

If I have a debt that I have defaulted on, what happens 6 years after the initial default if there is still an amount outstanding? I have been told that it falls off your file regardless as it should be 6 years from the date of first default, but have also been told that it falls off 6 years after the debt is settled?

I am now pretty confused, and for me if the latter is true that is just downright depressing! :undecided

Sorry, edited to add that I am in a DMP so effectively am I defaulting every month? This is where I am a bit confused by things, I hate the idea of having 6 years of bad credit while I pay off my debts and then having another 6 years of bad credit after that!!!.

fermi

If the debt has been defaulted, then it is 6 years from the date the default was first registered.

That is regardless of whether the debt has been settled at that time or not.

If the debt has NOT been defaulted it is 6 years from the settlement date. Which is what I think some people get confused by?

If the debt HAS been defaulted that doesn't apply though. It would ALWAYS be 6 years from the default date.

pollywolly71

Thanks for that!