To pay or not to pay?

fazcules

In the past I had credit cards but following a relationship breakdown I dug my head in the sand and ignored paying back the debts. I am now looking to repair my credit rating and have checked my credit report using noddle and clear score. They have highlighted a credit card debt from 2012. The debt has been sold by credit card company to debt recovery company.

The damage is already done by this debt, but is there any benefit contacting the debt company and paying off the debt or should I just let it continue until it is time barred and removed from file automatically?

Mummyto4kids

I believe that they can still obtain a CCJ for the debt which would then mean the default doesn't drop off in six years, plus its still money that you owe so could come up on internal checks with lenders in the future. I would set up an affordable payment plan that will prevent any CCJ, pay back what you owe and then the default will drop off after 6 years

National_Debtline

Hi

Mummyto4kids is correct that a CCJ could potentially be obtained until the debt is statute barred. Whether you choose to risk not paying it is ultimately up to you. If the debt collectors were planning to start court proceedings they should contact you first to try to arrange payments, but that doesn’t always seem to happen.

Paying it off might help if you particularly need to make an important credit application while it’s still showing on your file, but each potential creditor would take their own view on that.

James
@natdebtline