Need advice on what I should do!

Whippets

Hi guys

Iv been reading this forum for a while now but only recently decided to register, I need some advice really so here goes, I will tell you my story!

So I am a 22 year old male, I have been in debt since I was the tender age of 18. I made silly mistakes when I was young and was practically thrown store cards, credit cards etc as I earned decent money for my age! However it spiralled out of control when I went to UNI and was not earning as much! I pretty much defaulted everything bar a phone contract..

However I have not paid a penny since then and I left UNI, I'm on the right track now, have got a rented house with my partner and moved away with a secure and great job although not well paid, I have around 200 quid to play with each month after all the out goings! Iv been off the radar for a while now and my defaults are 3 and half years old (8 accounts) and no ccjs! Iv also managed to keep on to my phone contract and recently got accepted for a store account which I'm managing really well.

I need to know, should I start paying my debts now? As me and the mrs want a mortgage in a few years and I would like access to small amounts of credit again as I have learnt my lesson the very hard and stressful way..

My total debt is £6170 pounds now.
According to my file anyway.. What should I do? Argh! 18 is to young for credit especially store cards etc! I wish it was 21 this would never of happened then!

Thanks guys!

Whippets

Anybody?

Tixy

Hi

Should you start to repay? - Difficult question to answer.

Have you seen your credit file? have you only requested it recently (in which case your creditors would now know your latest address) or have you kept online access for a while?

Some pluses to repaying
- reduces the chance of a creditor obtaining a CCJ against you and scuppering your file for a further 6 years.
- increases the chance that you can get mainstream credit in a maybe a couple of years to start building up a good credit history prior to trying to obtain a mortgage.

matttye

Defaults drop off your file after 6 years whether they're paid or not. The only way it will benefit you is that the defaults will be marked as 'satisfied' if you pay them off. The very existence of a default is often enough to dissuade a lender though, satisfied or not.

If you go 6 years without acknowledging a debt or making payment the debt becomes statute barred, which means it's unenforceable in court. The creditor can continue to ask you to pay but can't enforce the debt.

Are your creditors still adding interest to your debts? It may be a good idea to pay off one debt at a time rather than paying them all - starting with the one with the highest interest. That way you can make progress without restarting the statute barred clock.. That said, if you do this you run the risk of a creditor you're not paying taking you to court.

The absolute worst thing that could happen for you if you don't pay, is that you get taken to court and get a CCJ that you can't pay immediately, as that will stay on your credit file for a further 6 years.

If it were me I think I would try to pay one company at a time.

Whippets

Hi!

Yeah I obtained it very recently, I have kept everything registered at my original address, and had 3 addresses since, I have 3 bank accounts which are well managed and I administrate online.. That's the thing, I don't want a CCJ although the amounts are all pretty low on each of the 8 accounts, my friend has told me just to wait 2 and half years when they will fall off my file. I'm not one to run away from issues and did try to fix it at the time but they would accept my payment plans and still expected me to repay 300 a month to creditors whilst being a student! With the minimum student loan this was never gunna work so that's when I got annoyed and gave them all the finger and went under radar. They should of accepted my payment plans back then! Aargh I dunno what to do! I'm getting a payrise in September so maybe I should then.. But I have been skint and getting by for years now and really want to actually enjoy my money for once! Is that bad?

Thanks

heatherks

Why did you take on more credit re store account if you knew you had not been repaying the previous 8 accounts ?

Whippets

All interest has been frozen since default. No increases in total debt for 3.5 years!

Tixy

If you go 6 years without acknowledging a debt or making payment and the creditor does not take court action before the 6 year period is up the debt becomes statute barred, which means it's unenforceable in court. The creditor can continue to ask you to pay but can't enforce the debt.

matttye wrote: »

The absolute worst thing that could happen for you if you don't pay, is that you get taken to court and get a CCJ that you can't pay immediately, as that will stay on your credit file for a further 6 years.

Strictly speaking the absolute worst thing that could happen is that one of your creditors could petition to make you bankrupt. Although certainly don't panic about that as that is really very unlikely given the level of debt.

You could risk not paying and hoping nobody takes court action. You could arrange to start repayments to all or some. You could start saving up your £200 or whatever and hope to build up a lump sum and offer reduced full & final settlements to your creditors one by one.

Whippets

I wanted to start getting green ticks for when they do fall off! I have 5 clean accounts and 8 defaulted accounts and 12 closed accounts. Thanks

Tixy

Whippets wrote: »

Hi!

Yeah I obtained it very recently, I have kept everything registered at my original address, and had 3 addresses since, I have 3 bank accounts which are well managed and I administrate online.. That's the thing, I don't want a CCJ although the amounts are all pretty low on each of the 8 accounts, my friend has told me just to wait 2 and half years when they will fall off my file. I'm not one to run away from issues and did try to fix it at the time but they would accept my payment plans and still expected me to repay 300 a month to creditors whilst being a student! With the minimum student loan this was never gunna work so that's when I got annoyed and gave them all the finger and went under radar. They should of accepted my payment plans back then! Aargh I dunno what to do! I'm getting a payrise in September so maybe I should then.. But I have been skint and getting by for years now and really want to actually enjoy my money for once! Is that bad?

Thanks

If you have just got your credit file and enterered your new address expect your creditors or debt collectors might well start chasing at the new address. Which could increase the risk of CCJs.

Whippets wrote: »

All interest has been frozen since default. No increases in total debt for 3.5 years!

Is that based on what your credit file shows? you might find when they contact you they are chasing for higher sums that the defaulted amounts shown on file.

matttye

Whippets wrote: »

Hi!

Yeah I obtained it very recently, I have kept everything registered at my original address, and had 3 addresses since, I have 3 bank accounts which are well managed and I administrate online.. That's the thing, I don't want a CCJ although the amounts are all pretty low on each of the 8 accounts, my friend has told me just to wait 2 and half years when they will fall off my file. I'm not one to run away from issues and did try to fix it at the time but they would accept my payment plans and still expected me to repay 300 a month to creditors whilst being a student! With the minimum student loan this was never gunna work so that's when I got annoyed and gave them all the finger and went under radar. They should of accepted my payment plans back then! Aargh I dunno what to do! I'm getting a payrise in September so maybe I should then.. But I have been skint and getting by for years now and really want to actually enjoy my money for once! Is that bad?

Thanks

You should put at least some of your money away in case you do get taken to court. If that happens you'll want to be able

Tixy wrote: »

Strictly speaking the absolute worst thing that could happen is that one of your creditors could petition to make you bankrupt. Although certainly don't panic about that as that is really very unlikely given the level of debt.

You could risk not paying and hoping nobody takes court action. You could arrange to start repayments to all or some. You could start saving up your £200 or whatever and hope to build up a lump sum and offer reduced full & final settlements to your creditors one by one.

Of course, I was referring more to what is likely to happen if any further action is taken