Defaults and repaying, 6 years or more?

SherrieT

Hello all,

I know these questions have probably been asked time andtime again (and I have been reading through the posts) but I would like someadvice on my specific situation just so I know that what I have been reading definitelydoes apply to me.

I have 5 debts ranging between £500 - £2,500, most of whichhave been defaulted around early 2012 after attempting (and failing) to start abusiness. Since approximately November 2012 I have been paying these debtsdiffering amounts each month (between £3-£11) under arrangements with theinterest frozen. So far no creditor has input anything on my file since thedefault. So that’s the backgroundinformation, here comes the questions:

1) Do my creditors have to input anything to say I amunder an arrangement and keeping within it? As far as I’m aware (and I could bewrong) this is not technically an ‘Arrangement to pay’ since that is only forshort term arrangements, is this true? Or does the default amount remain thesame, with the balance becoming lower each month when they update my file?



2) I have read that after an ‘arrangement to pay’has been paid in full, it takes 4 years with Equifax before it goes off yourfile so that some people have the debt remain on their file more than 6 yearsafter the debt has been in ‘default’. Thus, it is actually worse to pay offyour debts in some cases. Does this really happen? I don’t think I am in anarrangement to pay but does this type of arrangement go on my file just thesame? And will the debt remain until I pay back all the debt and it is settled(16 years) rather than the 6 years after default simply because I am payingthem back?



I really do appreciate any advice anyone can give me as itis a worry that because I am attempting to pay back my debts, I am actuallygoing to be in a worse position in the long term.

Thanks in advance

Sherrie

fermi

1) An arrangement only applies to an undefaulted account, so if these are marked as defaulted then that is the only status they will have from now on until settled. Yes, they should simply show the balance coming down from now on.

2) No. On a defaulted account the default and the entire account is removed 6 years from the original recorded default date. No matter what. End of. No exceptions whatsoever.

Once removed there will be no trace of the account at all. Nothing.