unsecured loan 6 years

nesslin78

Hi,
Sorry if this has been discussed before, I have tried searching but just keep running in circles!

I have finally requested my credit file - now I am all grown up (36) :T

I took out an unsecured loan that Barclay's offered me back in 2008 for £11K . I have banked with them since 2001 (still do). I defaulted pretty quickly, I was only working part time and suffering post natal depression at the time - how they thought I could afford the £270 a month I have no idea! I spent it in 6 weeks
In 2010 (ish) my mother wrote to them explaining she felt they had been irresponsible in lending me it in the first instance, they replied asking for medical notes. I never sent them.
Since default, they have known where I am, I still have my current account with them. I earn a good wage now, but I have never had a statement or a request for money. I defaulted may 2009.
My credit report for some odd reason was showing for many months as 13.2K outstanding but the past 6 months shows 12k. since my mum wrote to them in 2010 (ish) ive had no contact at all, no statement, no interest added etc... nothing. will this debt 'drop off' in may?
I'm ready for a mortgage and it is my only debt ( I learnt my lesson)
many many thanks for any help

Vanessa

Voltaire7

You didn't learn your lesson - you still owe £12K. You rely too much on your mommy. You're not mature enough to cope with a mortgage.

Presume not paying your debt has allowed you to save a hefty deposit?

matt-comparison

The tendency of such debts is to come back and bite you in the !!!!. There's interest accumulating to the point this could potentially grow to a devastating debt. If you are now better well of you better consult with an expert who can negotiate the loan repayment terms for you, and make sure it is all stipulated in an agreement. This is not the type of question I would ask around in an open forum or treat lightly. People who are statistically better earners than you, who neglected old "forgotten" loans ended up losing everything they own. Please be proactive about it.

DCFC79

matt-comparison wrote: »

The tendency of such debts is to come back and bite you in the !!!!. There's interest accumulating to the point this could potentially grow to a devastating debt. If you are now better well of you better consult with an expert who can negotiate the loan repayment terms for you, and make sure it is all stipulated in an agreement. This is not the type of question I would ask around in an open forum or treat lightly. People who are statistically better earners than you, who neglected old "forgotten" loans ended up losing everything they own. Please be proactive about it.

Who are these experts who can negotiate the loan terms ?

fatbelly

nesslin78 wrote: »

Hi,
Sorry if this has been discussed before, I have tried searching but just keep running in circles!

I have finally requested my credit file - now I am all grown up (36) :T

I took out an unsecured loan that Barclay's offered me back in 2008 for £11K . I have banked with them since 2001 (still do). I defaulted pretty quickly, I was only working part time and suffering post natal depression at the time - how they thought I could afford the £270 a month I have no idea! I spent it in 6 weeks
In 2010 (ish) my mother wrote to them explaining she felt they had been irresponsible in lending me it in the first instance, they replied asking for medical notes. I never sent them.
Since default, they have known where I am, I still have my current account with them. I earn a good wage now, but I have never had a statement or a request for money. I defaulted may 2009.
My credit report for some odd reason was showing for many months as 13.2K outstanding but the past 6 months shows 12k. since my mum wrote to them in 2010 (ish) ive had no contact at all, no statement, no interest added etc... nothing. will this debt 'drop off' in may?
I'm ready for a mortgage and it is my only debt ( I learnt my lesson)
many many thanks for any help

Vanessa

If the entry is showing as defaulted in May 2009 then the entry will no longer show on your credit reports after May 2015

A court judgement would show for 6 years from the date of judgement. However, if you last made a payment before March 2009 then if they did start court action now, then you have a defence that the debt is statute barred.

However they still have the right of set off and you should not be banking with them.

boo_star

fatbelly wrote: »

If the entry is showing as defaulted in May 2009 then the entry will no longer show on your credit reports after May 2015

A court judgement would show for 6 years from the date of judgement. However, if you last made a payment before March 2009 then if they did start court action now, then you have a defence that the debt is statute barred.

However they still have the right of set off and you should not be banking with them.

I agree with this, I'm quite surprised they haven't done it already.

You should probably find another bank to do your banking with because there's a good chance they'll exercise their right of set off at some point.

ViolaLass

matt-comparison wrote: »

People who are statistically better earners than you, who neglected old "forgotten" loans ended up losing everything they own. Please be proactive about it.

What's the difference between someone who earns more than me and someone who earns statistically more than me?

AndyT678

ViolaLass wrote: »

What's the difference between someone who earns more than me and someone who earns statistically more than me?

Probably 50% of them know what a bell curve is +/- 5% with 95% confidence.

Apples2

nesslin78 wrote: »

how they thought I could afford the £270 a month I have no idea! I spent it in 6 weeks

Maybe they believed you when you went out of your way to apply for it and told them you could afford it.

I would think most loans are spent within days of receiving the funds. I wonder what box you ticked as a reason for applying for it.

nesslin78

Just to clarify a few points.
I didn't go out of my way to apply for it. It appeared as a 'your offers' or words to that effect on my Internet banking. I clicked a few buttons and still didn't expect it to go through. I was more curious than anything. It did go through and I enjoyed spending it but If I could do it again, I wouldn't.
'mummy' wrote to Barclay's when she took over my finances following a mental breakdown.
Thanks for the genuine advice from those few that offered it. I feel judged harshly by the rest of you which I must say, I didn't expect.

dealer_wins

nesslin78 wrote: »

Hi,
Sorry if this has been discussed before, I have tried searching but just keep running in circles!

I have finally requested my credit file - now I am all grown up (36) :T

I took out an unsecured loan that Barclay's offered me back in 2008 for £11K . I have banked with them since 2001 (still do). I defaulted pretty quickly, I was only working part time and suffering post natal depression at the time - how they thought I could afford the £270 a month I have no idea! I spent it in 6 weeks
In 2010 (ish) my mother wrote to them explaining she felt they had been irresponsible in lending me it in the first instance, they replied asking for medical notes. I never sent them.
Since default, they have known where I am, I still have my current account with them. I earn a good wage now, but I have never had a statement or a request for money. I defaulted may 2009.
My credit report for some odd reason was showing for many months as 13.2K outstanding but the past 6 months shows 12k. since my mum wrote to them in 2010 (ish) ive had no contact at all, no statement, no interest added etc... nothing. will this debt 'drop off' in may?
I'm ready for a mortgage and it is my only debt ( I learnt my lesson)
many many thanks for any help

Vanessa

Better start making arrangements to pay the loan back, and get a 10-25% deposit saved up for your mortgage. Onwards and upwards as they say