Paying off debt and credit file

missionfella

Hi everyone

I've been trying to get an answer to this question for a while but it seems like it's a tough one. I have debts from over six years ago that don't appear on my credit file but that the DCA is chasing from me. I'm now in a position to pay of the debts (they're old student loans).

I'd like to clear the debts, hopefully with a full and final payment negotiated but will this show up on my credit file? There is nothing there now and I'd like to apply for a mortgage within a year if possible and I'm scared that by paying the debt off I'll ruin this chance.

I don't feel comfortable applying for a mortgage with this debt and then paying afterwards because it doesn't feel right and I'm sure it would be picked up anyway. Will I be penalised for paying it off though, by the whole thing showing up on my file and then having to explain it to a lender?

Hope this makes sense and i hope somebody has come across this before. My hope is that because the debt is older than six years the settling of it won't show up on my file but I don't know if that's true.

Thank you

Tixy

Assuming they have been on your credit file previously and dropped off then they should not reappear on your credit file now.

Is this erudio chasing by the way or a different debt collector?

If they never showed on your file originally then settling them shouldn't make them appear on your file, the only time it might is if the reason they don't appear is due to a missing address connection or something so they haven't been correctly linked to your file already.
However if this is eruido then they haven't been acting as normal for student loans.

You say they are over 6years old? has there been a period of 6years where you paid nothing/didn't write to acknowledge the debt/didn't defer payments etc?

missionfella

Tixy wrote: »

Assuming they have been on your credit file previously and dropped off then they should not reappear on your credit file now.

Is this erudio chasing by the way or a different debt collector?

If they never showed on your file originally then settling them shouldn't make them appear on your file, the only time it might is if the reason they don't appear is due to a missing address connection or something so they haven't been correctly linked to your file already.
However if this is eruido then they haven't been acting as normal for student loans.

You say they are over 6years old? has there been a period of 6years where you paid nothing/didn't write to acknowledge the debt/didn't defer payments etc?

Hi Tixy

They are over six years old but as they're student loans i don't think they can be statute barred and actually I'd prefer to settle the debt.

It's Link. Has anybody had any dealings with them? The fact is, i didn't pay the debt (long story) and it's my responsibility to sort it out but I just want to get it done without it affecting my ability to get a mortgage.

Tixy

Student loans are covered by the limitation act, so they definitely can be statute barred.
If they are oldstyle student loans then they would become statute barred 6years after you last made a payment or last deferred or any other written acknowledgement (whichever is the latest).

However if you decide you do want to pay the debt collector then if it more than 6years from when you defaulted on the loans they should not add anything to your credit files now.

If you do decide you want to pay back and are in a position to pay a lump sum then I would recommend trying to offer a reduced sum in full & final settlement of the debt - https://www.nationaldebtline.org/EW/factsheets/Pages/24%20EW%20Full%20and%20final%20settlement%20offers/Default.aspx
If Link actually own the debt then they will have paid far less than the outstanding balance to buy the debt.

missionfella

Tixy wrote: »

Student loans are covered by the limitation act, so they definitely can be statute barred.
If they are oldstyle student loans then they would become statute barred 6years after you last made a payment or last deferred or any other written acknowledgement (whichever is the latest).

However if you decide you do want to pay the debt collector then if it more than 6years from when you defaulted on the loans they should not add anything to your credit files now.

If you do decide you want to pay back and are in a position to pay a lump sum then I would recommend trying to offer a reduced sum in full & final settlement of the debt - https://www.nationaldebtline.org/EW/factsheets/Pages/24%20EW%20Full%20and%20final%20settlement%20offers/Default.aspx
If Link actually own the debt then they will have paid far less than the outstanding balance to buy the debt.

Ah, that's really helpful thanks Tixy. I'll do that then.

The only thing that worries me is the line in the letter about putting a mark on my credit file. Should I leave that out as there is nothing on my file anyway?

One of my loans is from 1994.

Tixy

Yes leave out that line.

missionfella

Tixy wrote: »

Yes leave out that line.

Thank you. I think I'll send a statute barred for the two from 94 and 97 that are with Link but would that end up on my credit file?

Sorry if it seems like I'm asking obvious questions but it's a bit confusing and i don't want to !!!!!! my file up for six years.