Unsettled Default expires 09/14 - should I still pay it?

rags2riches_2

Hi all,

Making a bit of a return to the forums as I'm finally starting to face up to my financial problems.

I owe in total just under 9k to various creditors that all defaulted in 2008.

I have ignored these debts for such a long time but I'm now in a position where I can make a contribution to clear these debts per month.

My only worry is - I won't be able to clear all of the total debt before the default expires.

So is it actually worth paying it as in effect I've already been punished for the last 5 years its been sat unsettled on my credit file.

Thanks

sourcrates

rags2riches wrote: »

My only worry is - I won't be able to clear all of the total debt before the default expires.

Thanks

Why is that a worry ? are you concerned they will issue a fresh default ? don't think that's how it works, the default will stay on your file for the six years then it will magically disappear, weather you pay anything or not, you don't say why you have defaulted on these accounts, more info would be welcome.

rizla_king

Only worry would be potential court action. But if any go to court then you just pay it off before or within a month of judgement, and that never goes on your credit file either.

rags2riches_2

sourcrates wrote: »

Why is that a worry ? are you concerned they will issue a fresh default ? don't think that's how it works, the default will stay on your file for the six years then it will magically disappear, weather you pay anything or not, you don't say why you have defaulted on these accounts, more info would be welcome.

Hi,

Thanks for the reply.

The reason for the defaults were majorly overstretching myself financially as a student in addition to lots of lenders that were irresponsibly throwing lending opportunities at me with ridiculous credit limits considering my income.

I suppose what I'm trying to understand is - will paying it off actually benefit my credit score if it will disappear in less than 12 months anyway?

And some of the smaller debts that I can pay off in say 6 months - should I pay those if again they will disappear from my credit file in 12 months?

Thanks

happy_bunny_2

as long as none go to court, then after 6 years they fall off your report, paid or not. Like they were never t here.

One thing to consider is that if you have not paid or acknowledged a debt in writing for 6 years, its statute barred and they can't get a CCJ if defended. They can ask you to pay, but can't make you.

So if this is the case, you might want to hold off a bit until you are sure they are SB.

If after this you want to pay them anyhow, you will likely get a very good deal as there's nothing legally they can do.

rags2riches_2

Thanks for the advice!

Need to ask one more targeted question to will do that in new thread...