Debt confusion

Manda9

Hi
I just wanted to know what the best route to take is:
I defaulted on a car finance payment in 2009, will the debt be taken off my credit report 7 years after the default whether I pay or not?

On the other had if I paid the debt in full this year would I have to wait another 7 years after I paid the debt off before it would be removed from my credit file, or would it still expire 7 years after the default?

Many thanks

MrSilk

Hi there,

It's six years from the default date, paid of not.

No, if you paid the balance off, it would still drop off your report six years from the date of the default.

Hope this helps!

Manda9

Thank you! That has helped a lot

Manda9

Thanks for replying to my above question. I just wanted to know one more thing, does anyone know the consequences of not paying the debt within the 6 years. Will it completely disappar or will it affect my ability to lend after 6 years has passed since default?

Thrugelmir

Anytime within the six years the owner of the debt could obtain a CCJ against you. Thereby extending your problems.

shireknight

When was the last time you had any contact with the person who holds this debt? if you haven't had any contact with them since 2009 and they do nothing further then after six years the debt will lapse and then the only way it can be enforced again is if the creditor tricks you into admitting you owe them the money.