Noddle account

aimme13

Hi,

I hope one of you lovely people can help me,

My debt history is about 10 years old and I've spent the last 9 years paying off through payplan and then organising things myself. I'm down to the last 3 debts and smallish amounts.

I have had no credit for the last 10 years and happy managing my money (I have always been good with money just not good at chosing the right partner!!)

Anyway I'm now hoping in the next year or so to be able to get a mortgage (its a big hope!) so I'm thinking ahead.....after looking on here I saw I could get free credit report (I have had one from Experian before) so I signed up to noodle just now....All but one account has 'dropped' off my file except for my old joint account which decided to add interest for about 5 years and then contact me!!.....I had no contact and disputed but bottom line is I had to set up payment plan. This is showing on my account as default.....each month says default.....now to me this looks like I'm not paying anything each month??? I have 2 years before it 'drops off' and I guess I want to know what will be the best thing for me to do?the balance is £900.....I have some money due in the next month and could pay it......I'm reluctant to ask for full and final as I worry they will sell it on or it will look like I havnt paid it all??...I' currently paying £20 a month....do I carry on as I am or settle??
What would look best on credit report??I'm also applying for a credit card just to build up my credit but just to use for petrol.Sorry for waffling on If anyone remotely understands what I've wrote then any advice would be appreciated x

Tixy

What would look best on your credit report - paying off in full as soon as you can.

You say each month it says default - thats just showing the current status of the debt - that it is still in default. If you are paying something off each month the only thing that should be changing month on month is the outstanding balance.

In terms of offering a full & final settlement and your worry about them selling it on - the key is what you manage to negotiate with the creditor. If you can get it in writing from them that it is in full & final settlement of the debt and neither they nor anyone else will chase you further for the debt - and that your credit file will be updated to show no outstanding balance - then you'll be fine. Have a look at the national debtline factsheet and template letter.

aimme13

Thank you so much for your reply, If I pay the £900 or agree a full and final for less would the account still appear the same on my credit file?

Many thanks

Tixy

If you pay in full it will still show that it did default but will show as satisfied and nothing owing. The whole record and the default drop off 6 years after the default.

If you do a partial settlement then it depends what you negotiate. Often they will only agree to show that the debt was partially settled - but it will still be clear that the balance is nil and nothing owing.
Or sometimes people can negotiate to pay a reduced payment but for it to show on file as though it was settled in full. This is the best option if you can get them to agree it (in writing).

aimme13

Thank you for the reply, I will get the template and see what they can offer, I guess something off the full amount is better than nothing so definately worth a try!