Should I pay debt?

BradHouston

Good morning, I defaulted on an account in 2007 for around £5000, in 2011 I started paying monthly as I could afford to pay, but again I stopped as bills started getting on top of me and I could not afford it.

Technically I defaulted in 2007 and the debt should now be deleted from my report, but because of the payments I made in 2011 the default is now from 2011, So I would need to wait until 2017 for the debt to be removed from my report.

I have been in a good job for over a year now and I have nearly £3500 saved ro clear of the outstanding debt, but should I pay it? will it get removed from my credit report if I pay it? or would it still show on my report and effect me until 2017? and in effect be a waste of money to pay it off?

Also would I be able to get a settlement figure? the outstanding balance is £3500, if I called them would there be a chance of a settlement figure? ifso roughly how much could I save?

I'm 25 and really want to move on with my life, I have a son and I want nothing more than a mortgage and stability! this is the only thing holding me back.

Kindest Regards, Brad

T4NK

Hi Brad,

I had quite a bit of debt before I bought our house, about 10k but I managed to clear that in a couple of years and save £13k for a deposit, I did however have 3 missed payment on my credit file and I got outright refused by a few companies. So even though I was in a stable job and had just over 10% deposit I was still refused based on 3 missed payments for £40 which I thought was ridiculous! If I were in your situation and the debt is showing up I would personally pay it off and start rebuilding your credit file whilst saving for a deposit...I'm sure one of the more experienced users will give you some more concrete advice but that's what I have to offer.

T4NK

Cycrow

morally, you owe the money, so you should pay it back, wether it improved your credit rating or not.

However, if you dont pay it back, they could apply for a CCJ for the debt, and this would make it even worse for you when trying to get a mortgage

teffers

Whether paid or not it will stay on your record until the the default period is over.

I'm not convinced if they can re-classify the default date from the point you started making payments though. Even if the debt is sold on I believed they had to retain the same default date (I'm not sure of this however, someone else might know for sure).

Don't call them, ALWAYS write letters. It's slow but you need the paper trail.
You can ask / offer them for a Full and Final Settlement figure which is less than the amount they say you owe - have a read up on the forum for amounts etc.

You can ask that if you pay this !!!!!! figure they mark your default as 'Settled' - this is better than simply defaulted. You can even try your luck and ask them to remove the default but this is very unlikely.

Good luck.

happy_bunny_2

They are not allowed to change the default date, but DCAs do when they want your attention.

Written complaint, signed for, telling them to correct it or you will referring to FOS as well as reporting them to ICO and OFT. You can refer to FOS if they fob you off, refuse or after 8 weeks of no final response.

This is the guidance used for filing of defaults:
https://forums.moneysavingexpert.com/discussion/3172602

paulwellerfan

you had the money, you spent it.you pay for it. simple.