Currently setting up Token Payments, how will this affect me

Tixy

A debt will drop off 6years after a default is registered.
If you only pay token payment, or no payment then your creditors will very likely issue a default within anything from 3 to 6months (some may already have done this?).

If, after that, they do pass your debt on to a debt collector the debt collector would use the same original default date.

There is a chance one of the creditors or debt collectors takes court action and obtains a CCJ in say 3years - well that would then be on file for a further 6years. A CCJ becomes more likely if a creditor thinks you can afford to pay more than you are actually doing.

In terms of getting a mortgage in say 10years (assuming lending will be similar to now). If by then there were no negative entries on your file and you had repaid all of the debt by then, and had chance to start building up a positive credit history then this past blip shouldn't be a major issue to getting a mortgage.

If the accounts/defaults had all dropped off your file but you were still repaying them - then that would likely be an issue to a mortgage lender (as obviously you'd need to declare the debts on application).