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debt advice

Hi

Really hoping someone can give me some advice.

I started to get into debt the day after my 18th birthday. By the time I was 21/22, I was about £15,000 in debt - 2 overdrafts, 2 loans & 2 credit cards and a couple of store cards. At about this time, I moved house and didn't notify any of my creditors. I'm now 30 and I still get the occasional letter from a debt collecting agency but have completely ignored them.

I haven't been on the voters roll since I moved so I haven't heard from most of the creditors. But, now that I've got my sensible head on(I'm 31 now), I really want to start the process of somehow clearing all my debt with the overall intention to get back on the voters roll and to buy a house.

However, I don't want to start being constantly harrassed by all my creditors.

I've had a look round various forums but can't find any asking for advice which is similar to what I'm asking.

Basically, I want to know if this debt will have been written off as its been so long since I last made any payments to them or had any communication (other than their standard letters)? I'd like to check my credit file as well but this involves giving my current address and I'm pretty sure this wiould then get passed onto the debt collecting agencies.

I have very recently opened a catalogue account (only done it to see if I would get accepted - I've since completely cleared the balance) and was surprised that they approved it with a £550 limit. Have had a few applications for mobiles, loans, etc refused (although it has been a year or two since I last applied for anything like that).

So, to recap (apologies for the long winded post), can someone answer/confirm the following:-

1. In Scotland, unsecured debt in scotland is written off after 6 years if no payment is made;

2. How do I start the process of finding out what is outstanding;

3. What would be my best avenue for being debt-free? I have little or no assets but am in full-time employment earning about £20k per year. Have a wife and a 14 year old son. wife works part time earning £5000 per year, and pay out about £1000 per month between rent, insurance, car expenses, credit union loan, etc.

Thanks in advance for any help. I'll be back on tomorrow night.
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Comments

  • oops_a_daisy
    oops_a_daisy Posts: 2,460 Forumite
    Part of the Furniture Name Dropper Combo Breaker Debt-free and Proud!
    Hi there sgandtg and welcome to DFW

    sorry I cant actually offer any advice but just wanted to wish you all the best and hope you will soon be sorted. This site is closing for maintenance at 10pm tonight for 4 hours so you may not get too much advice tonight but please come back and bump the thread till you get the advice you need.

    All the best and good luck - OOPS
    :cool: Official DFW Nerd Club Member #37 Debt free Feb 07 :cool:
  • silkglade
    silkglade Posts: 559 Forumite
    sgandtg wrote: »
    Really hoping someone can give me some advice.

    Basically, I want to know if this debt will have been written off as its been so long since I last made any payments to them or had any communication (other than their standard letters)? I'd like to check my credit file as well but this involves giving my current address and I'm pretty sure this wiould then get passed onto the debt collecting agencies.

    1. In Scotland, unsecured debt in scotland is written off after 6 years if no payment is made;

    2. How do I start the process of finding out what is outstanding;

    3. What would be my best avenue for being debt-free? I have little or no assets but am in full-time employment earning about £20k per year. Have a wife and a 14 year old son. wife works part time earning £5000 per year, and pay out about £1000 per month between rent, insurance, car expenses, credit union loan, etc.

    Thanks in advance for any help. I'll be back on tomorrow night.

    Hi and welcome to mse.

    You DO need to get a copy of your credit report from each of the credit check agencies, this will give amounts of debt and the default dates. if the debts are more than 6 years old (might be 3 actually) then you are no longer liable (it is what i am led to believe anyway)

    Of anyone knows differently then please feel free to correct me

    keep us updated with your progress though, and might be worth trying for EITHER another mobile OR credit card as it has been some time and you now have a bit of a credit history now
  • sammy115
    sammy115 Posts: 15,267 Forumite
    You need to register on the voters role and then get a credit check done. I think the only way you are going to find out is by putting your head above the parapit and facing the issue head on.

    I do believe that the debts will be written off after six years. You are going to have to do some work on rebuilding your credit though.
    Quality is doing something right when no one is looking - Henry Ford
  • sgandtg
    sgandtg Posts: 24 Forumite
    OK, thanks for the advice given so far.

    On the basis that it is quite likely that most of the debt will have been written off, I think I'm gonna take the plunge and start the process within the next week or two.

    Can anyone advise what expenses can be taken into account if I have to setup some way of paying off any debts that haven't been wiped? For example, how much are you allowed to claim you spend on food, cigs, alcohol, driving a car (would it be a good idea to "sell" my car - worth about £2k - to a friend/relative before going down this road to avoid it being taken off me or are you allowed a car for work purposes?), mobiles, cleaning, etc, etc?
  • sgandtg
    sgandtg Posts: 24 Forumite
    Just noticed your siggy silkglade, congrats for being on the cusp of being debt-free!!!
  • They wont make you sell your car so dont worry about that. You only need to pay what you can afford contact cccs or payplan to help set up payments theres a sticky at the top with there details.

    Well done for facing your debts :D
    Isn't the knowledge that comes from experience more valuable than the knowledge that doesn't?
  • aaroncaz
    aaroncaz Posts: 5,242 Forumite
    Part of the Furniture
    Sorry to but in here, but do the credit agencies pass on your address to debt collecters?
  • fermi
    fermi Posts: 40,542 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Rampant Recycler
    Debts, even of this age are rarely 'written off'.

    However, it is likely that they are now 'Statute Barred' under the 'Limitation Act 1980', and so are unenforceable by your creditors.

    This factsheet by 'National Debtline' explains which debts fall under the 'Limitation Act', and what it's consequences are.

    http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • sgandtg
    sgandtg Posts: 24 Forumite
    Hi Ferni

    Bear in mind that the law in Scotland is different to that in England/Wales.

    From what I've read, and I've only just started looking into this, most unsecured debt is written off in Scotland if 6 years have passed since you last admitted you owe the debt and/or since you last made a payment. I beleive that the debt is not written off is the company were successful in obtaining a CCJ against you for the debt. Secured debts (mortgage for example), are wiped after 12 years.

    Cant remember which websites I read it from but they were offical government ones - I'm sure it was a Customs & Excise site.
  • fermi
    fermi Posts: 40,542 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Rampant Recycler
    sgandtg wrote: »
    Bear in mind that the law in Scotland is different to that in England/Wales.

    I know that. Obviously still asleep, as I missed the Scotland bit.:o

    More coffee needed I think.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
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