Massive debt but good credit rating- WHY?!

MoraMe

Hi,

Wanted to ask for some advice!

I've got a debt: An £8,000 professional development loan from a bank (taken out 10 years ago) It's not mean tested in terms of repayments, and interest is pretty high. I have not paid any of it off and have lost touch with the bank. I have finally saved money to pay off the total loan, but maybe not with all the interest with enough left over to financially survive.

I was a bit scared about how to approach the bank that I'd been out of touch with, and find out how much I would actually owe with all the interest. Therefore, based on a debt charities suggestion, I checked out my credit rating hoping that would list how much I owed. BUT I found out it is excellent and I owe nothing!? No mention of my debt. Wondering what to do!?

I really want to pay the debt off, but maybe they've written it off already/sold it to debt collectors. OR else when I ring them , they will refuse to take a settlement and will be delighted to have my current address so they can hound me for repayments and give me a bad credit rating.

Long story, but due to injury followed by years of low paid jobs, I never paid it off. For a while I had been in contact with a debt charity and was paying the bank token £1 payments on the loan. I did once offer a full and final settlement, of £5000, raising some money from family, but they refused.

Lately though, the bank have no idea where I live ( debt charity advice) and I have not been in contact. However, I have finally retrained as a teacher and I have a decently paid job (£1,450/month take home ) I have been living at the family home and paying low rent. I have therefore saved a fair amount of money.

BUT, I have found the job incredibly stressful and affecting my health. I have therefore, applied for a job in a new school in a different area, and giving it one more go! So I am having to move out soon and I have lots of outgoings ahead though- paying off £70/ month student loan, driving lessons ( so I can get to my new job) union fees etc. The city I live in is very expensive, but the salary doesn't match it. I will need a financial buffer to find my own place to rent.

I suppose, worst case scenario, if I can't pay the loan and 10 years interest in full, they'd want me to pay it off over many years, which I cannot afford. Also, although the bank may be delighted that I can repay over many years with a steady income as a teacher. BUT as I probably do not intend to stay in this career due to its stressful nature, I may well end up taking a less well paid job soon!

Thanks for your ideas. Please tell me if you are giving advice based on your personal experience or your professional advice based on your career. Both welcome!

Tixy

Hi and welcome

When you got your credit file did you give you previous addresses? (including the address the debt was taken out at and the last address the bank did have for you).

If so its likely that the debt has dropped off your file. This would happen 6 years after the bank first filed a default on your credit file. If this has happened they cannot re-add the debt to your file.
The other option is that the addresses are not linked correctly.

How long ago did you stop the £1 token payments? or offered the £5k settlement (if that was more recently?)

MoraMe

Thanks very much: good point! I did the credit check with Noddle. I did give my address to them where I was last registered with the bank. I am not sure dates for the £1 repayments or settlement offer. Think the 5K offer came after. Was at least 2 years ago. Maybe even 4. I will look into it , see if I can get any dates and get back to you- Paperwork and old computer are in storage!