5 defaults - Any point in paying?

cardifflad

Hello,

I have 5 defaults on my credit file, all of which will have dropped off my credit report in the next two years. I don't plan to apply for any credit inc. loans, mortgages or credit cards during this time period and therefore I wonder if I should pay off the debts I have.

The debts are mainly small sums - all under £400 with most of each debt being made up from charges applied to the accounts I had when I was a complete idiot with money.

My question is, if I pay these accounts off will it just be like throwing money away or will it actually do me some good once the defaults have left. Im under the impression that the actual default will supercede any 'Partial settlement' that I pay to a creditor so wonder if there is any point.

Morally, it may be a different matter!

Thanks for your help.

Tom

happy_bunny_2

It depends.

Once gone, it's like they were never there.

If you don't pay a debt or acknowledge in writing for 6 years, statute barred, no CCJ if defended.

If less than this, they can take you to court, get a CCJ and if not paid within a month trashes your credit report for 6 more years. If they don't gave your current address, you could get one and not know as you would not get the court papers.

You could look to settle for less, or even do so when statute barred.

If you owe the money, you will be asked on a mortgage application about unsettled debts whether or not on your credit report. Lying would be fraud, but in reality they would be unlikely to find out.

I'm in no place to judge on morals.

HB