Ignored debt for years now needs sorting

lukes567

Hi. Basically this is my situation. I know how stupid I have been and have made terrible decisions but am at a point now where I have to sort this out.

When I was 18 I got credit card after credit card and ended up racking up around £16,000-£19,000 worth of debt 4 years later.



A few years ago, I went to PayPlan to setup an IVA. They set it all up and I was about to sign it off when I realised that any extra commission (bonuses) earned in my job had to go into the IVA, so instead of paying the agreed £6500 at the end of 5 years it could have been a lot more - anything up to the £16,000/£19,000 I originally owed (I have always worked in sales, which pays a basic wage plus a commission).

After leaving the IVA unsigned and unfinalised for months as I thought I couldn't live with the amount I would have to be paying back taking into consideration I had to pay in commission too, I received a letter from Payplan (a few months after) but I didn't open it and shoved it back to the drawer.

Now I feel I would be better off just contanting the debt recovery agencies (who used to send me all the letters, the 9 different debt recovery agencies who owned the debt across the 9 credit cards) [do they still own it after I unfinalised the IVA with PayPlan?] and just paying them off one by one in one lump some - like paying one of them each month to clear the debt (a few of the previous letters I have received back 2/3 years ago were offering 80% off the total amount to "clear" the debt).



My question is would paying them all off in one lump sum each, at 80% off, would this clear my debt as good as an IVA? Would it be worth, now, contacting them one by one and offering to pay off the individual debts in a lump sum?

What is the guarantee this will actually genuinely clear the debt and increase my credit score? Will I have to chase them to get them to to advise the credit reference agencies that the debt is clear?

Thanks for any help. I know I have made a lot of bad decisions in the past with all this but just want to sort it all out now.



I have be ill with worry in and out of the doctors and hospital with depression and pain problems - probably all due to worrying about this debt - and I just want it sorted out now either in a way where I can pay a monthly fee with no commission payments (I heard if you contact private Insolvency Practitionors you can get an IVA with a clause in it saying you do not have to pay Commission/Bonuses)

...or...

by just paying off each creidior (i.e. the debt recovery agencies) one at a time when I have the money (how long will it take and will it be a guaranteed way of getting my credit score up???)

Problem is it's so long ago I'm not sure who would be dealing with my debt now - whether it's the same company or what - because they stopped sending letters after the PayPlan fiasco. I could try and dig out the last letter from PayPlan I never opened.

My head is all messed up at the moment and I don't know where to start.

I haven't been contacted by PayPlan or any of the debt recovery agencies for nearly 3 years now.



Thanks for any help
Luke S.

ikkle87

When was all this hun? When did you last make a debt payment, or acknowledgement to the company that you owed them money?

lukes567

Hi there the last time I spoke to them was when I moved to my previous address about 3.5 years ago. From what I remember I acknowledged the debt I guess by advising them of my new address. I have never made a payment on them. In 2005 the credit cards turned into debts with the debt collection companies. Never made a payment on any of them. Stupid to have left it all this long I know.

suburbanwifey

Wait another 2.5 years with no debt payment and they will be statute barred.

lukes567

Statute barred? Are you saying my credit score will automatically jump up in 2.5 years guaranteed if I do nothing? Thanks.

stephane_2

lukes567 wrote: »

Statute barred? Are you saying my credit score will automatically jump up in 2.5 years guaranteed if I do nothing? Thanks.

They still have over 2 years to find you....eventually they'll catch up with you!

lukes567

My question is will paying their reduced settlement figures they offer me of 80% off the original debt amount increase my credit rating dramatically or will it just stop them sending me letters and my credit rating is screwed forever?

lukes567

I just wajt to clarify something guys, I am person who really wants to increase their credit rating. This is my prime and sole concern.

ikkle87

Your credit rating is never screwed forever Hun. Defaults only last 6 years on your file before they are removed. Have you had a look at one of your credit files with one of the major sites? Did they automatically ask for 80%? Have you made a counter offer for less? Did pay plan say you couldn't do a dmp? Could you post an soa?

Sorry if it's a lot of questions I'm reading on my phone x

lukes567

Hi, thats ok!

They defaulted around 2005/6 so I might sign up to experian to see if they have been removed. And if not I can ask for them to be removed right? Payplan just organised an iva which I never finalised and didn't say anything else. Not sure what an soa is will look it up later on when I get home...

Jonny_Belfast

From what i have learned with my debts is that if you ignore them it will only get worse.. even if you make it the next 2.5 years by dodging them they will take you to court.. the last year will be the worse and they will hound you.. i would say if you can get up to 80% off by paying them that is a good deal and you should take it.

When you stand up and admit your debt and get a good payment plan sorted you will feel alot better.. but if you ignore it you will probly end up with a CCJ and even more debt.