Is it worth paying back a defaulted account?

ALIBOBSY

Thrugelmir wrote: »

Every month the debt will marked as being under an Arrangement To Pay. So there's no benefit when the default drops off. As the markers will be visible and impact your attempts to obtain credit.

This is wrong the whole account drops off with the default even if unpaid. But the reality is most debts are sold on well before this and written off by the original creditor (sold to a debt collector for a lower amount often 10-20p in the £) even if you make an ARP and stick to it.

With smaller debts its rare for the original creditor or any debt collector to take it to court, but with the amount stated by the OP, especially if they own a property court action against them is a real possibility.

So if the OP can get the OC to accept an arrangement and sticks to it, they are right it all drops off after 6 years. But the debt still exists and the OC can pursue it in court until statute barred rules kick in, which could be 6 years after that.

TBH for the amount quoted it is highly unlikely the OC would keep taking a small amount per month for 6 years without either taking court action or simply selling the debt on.

Best bet might be to make an arrangement now and try to increase your income and put away some money to try to make a full and final offer later-debt collection agencies are more open to these.

Good Luck

Ali x