Why should I pay my debts?

trawcliffe

I know this may sound like quite an idiotic question, however hear me out...

I've recently taken a look at my credit score, which isn't too great, however not terrible! There are a few defaults on open accounts, with the last due to be removed May 2019.

I haven't been in touch with any of these creditors since the accounts have been defaulted.

So my question is, what advantage will I gain by paying these off and leaving them to be removed, as oppose to not paying them and leaving them to be removed?

Thanks!
Tom

The_Boss

You don't have a credit score. What's with all the recent "credit score" threads about this again when there's a sticky and countless other threads on this forum about it?

If they are due to be removed in 2019, then the default date is 2013 which means they can still chase you for the money and potentially take out a CCJ, which will also be stored on your record and be making things worse for yourself. If you pay the back then they will be marked as such on your report and look better to lenders when applying for data.

Besides, if you spent the money you should pay it back.

DevCoder

They could also petition for your bankruptcy if the amount is over £750 (or if the creditor can prove that they have a share of debts with other parties amounting to more than £750).

somethingcorporate

trawcliffe wrote: »

So my question is, what advantage will I gain by paying these off and leaving them to be removed, as oppose to not paying them and leaving them to be removed?

The advantage you get is piece of mind that you are an adult and pay back your debts.

Whether this means anything to you is down to your own moral compass but expect lenders in future to treat you with the respect you deserve if you default and refuse to pay anything back (which is evidently going to be very little respect!).

Thrugelmir

trawcliffe wrote: »

I know this may sound like quite an idiotic question, however hear me out...

I've recently taken a look at my credit score, which isn't too great, however not terrible! There are a few defaults on open accounts, with the last due to be removed May 2019.

I haven't been in touch with any of these creditors since the accounts have been defaulted.

So my question is, what advantage will I gain by paying these off and leaving them to be removed, as oppose to not paying them and leaving them to be removed?

Thanks!
Tom

Any plans to buy a house in the future?

27col

" Why should I pay my debts?"
What a charming attitude. Have you no personal pride. You should be ashamed of yourself.

trawcliffe

Thanks for the replies everyone!

Fear not, I have every intention of clearing my debts up, and have already made a start.

The reason for the abrupt and blunt question was to get a group of quick answers. As after a bit of reading I found most articles explaining how defaults work, simply didn't note that by paying debts would get rid of defaults any quicker.

They could also petition for your bankruptcy if the amount is over £750 (or if the creditor can prove that they have a share of debts with other parties amounting to more than £750).

Interesting! A petition for bankruptcy can be made for as little as £750?

If they are due to be removed in 2019, then the default date is 2013 which means they can still chase you for the money and potentially take out a CCJ

So if payments aren't made after an account has been defaulted, a CCJ can be taken out? I only ask as I have read that if someone were to be chased after 6 years it is considered illegal? I suppose this scenario is a rarity.

MrSilk

I once, very recently had debts that totaled to around £6,000. For two years I buried my head in the sand, but today; I have outstanding balance of around £1800 with Lowel.

I started paying them back 4 years ago, with 1 CCJ and 5 defaults on my credit file, I, as the same as you thought to myself what's the point in paying them back if the damage had already been done, but then I thought, I spent it, I should pay it back; morally it's the right thing to do in life.

Now, I have 1 default left on my credit file, the CCJ dropped off at the end of last month, with the other 4 defaults dropping off over the course of the last 2 years.

Pay it back, if you don't pay it back,t hey could go for either a CCJ or bankruptcy, which I'm sure you can do without.

Call your creditors, and set up a payment plan.

trawcliffe

MrSilk wrote: »

I once, very recently had debts that totaled to around £6,000. For two years I buried my head in the sand, but today; I have outstanding balance of around £1800 with Lowel.

I started paying them back 4 years ago, with 1 CCJ and 5 defaults on my credit file, I, as the same as you thought to myself what's the point in paying them back if the damage had already been done, but then I thought, I spent it, I should pay it back; morally it's the right thing to do in life.

Now, I have 1 default left on my credit file, the CCJ dropped off at the end of last month, with the other 4 defaults dropping off over the course of the last 2 years.

Pay it back, if you don't pay it back,t hey could go for either a CCJ or bankruptcy, which I'm sure you can do without.

Call your creditors, and set up a payment plan.

Exactly what I'm about to do. MrSilk, smoothly put.

Thanks everyone.

Apologies for coming across arrogant with the opening question, this wasn't the intention.

mjm3346

trawcliffe wrote: »

So if payments aren't made after an account has been defaulted, a CCJ can be taken out? I only ask as I have read that if someone were to be chased after 6 years it is considered illegal? I suppose this scenario is a rarity.

They can take out a CCJ anytime up to the 6 year limit on you making a payment/acknowledging the debt, the longer they leave it before getting it the more added time they have to legally chase you without needing to go back to court.