What do do with fairly old defaults?

Dh944

I am trying to get my credit rating in order in the hope that my wife and I can apply for a larger mortgage in a couple of years time. I have defaulted on 3 credit cards ranging from 2010 until 2012, the sum total being around £3500. I have just arranged to pay £20 per month on one from 2012, a balance of £1200 - this is the only one that I received recent letters about. The oldest debt is the largest, around £1900. I understand defaults drop off after 6 years, so do I arrange to make some sort of payment for another couple of years to keep the agency happy or just wait until it drops off and concentrate the money on getting other debts paid? What will happen if these aren't paid in full after the 6 months?

BillJones

If you want to improve your credit record, paying the debt in full would generally be a good step.

If you don't have the money to do this, then I don't think that you are going to be likely to increase your mortgage for a good few years yet; no-one's going to be keen to lend to you if you've shown that you don't honour debts (and if you claim that you can afford the mortgage payments, the obvious question is why are you not paying back what you owe first).

happy_bunny_2

Yes defaults drop off after 6 years, paid or not.

Just because it's off your file doesn't mean you don't have to pay.

They can take you to court, get a CCJ, that goes on your file for 6 years from date issued.

If any were taken out before April 2007, worth a CCA request as they can't get a CCJ if defended without the original. This would put you in a decent position for a full and final offer.

Dh944

Thanks, def dont want a ccj so looks like the best option is to set up arrangements for them all and pay as much, if not all, in the next couple of years.OH will be back to full time work within that time after having two kids close together so that will greatly help!