Should I Bother To Pay Debt In This Scenario

pelic · 1 February 2016 at 4:58AM

I have defaults but I live with my parents... My credit rating is still going to suck even if I pay them off so what's the point... They can send me letters or phone calls but these are ignored anyway...

All the debt has been sold off to debt collectors for peanuts... I am looking for no new credit and will not require any ever.

Once the defaults drop off they can still chase me if they want, and I understand I will not get any credit from these companies again, but that doesn't really bother me.

I now think the best thing to do is nothing and continue my life. At the end of the day I will end up in a wooden box like everyone else, I don't want credit, so best option yes?

Sharon87 · 1 February 2016 at 6:35AM

Well they could take you to court to get a CCJ against you if you don't pay it! Then if you refuse to pay that they can get an attachment of earnings - so it comes straight out of your pay slip.

Also do you ever want a mobile phone contract, a new bank account or to rent a house? If so CCJs can affect both of these!

It doesn't seem to be the right attitude either, I personally believe if you build up debts you have to pay them off. If you can't afford to there are ways to help - pay a small monthly sum to each creditor (eg £1) to keep them off your back until you're earning more to pay it off.

Your credit file won't be ruined forever if you don't get anymore defaults and you continue to pay your debts (aka get no CCJs), it'll have the defaults on for 6 years, after that they will drop off. Credit file seems to be everything these days, more and more people use them to check on people like landlords use them and even car insurance policies report to credit reports if you pay monthly...

ReadingTim · 1 February 2016 at 11:04AM

Sharon87 wrote: »

Also do you ever want a mobile phone contract, a new bank account or to rent a house? If so CCJs can affect both of these!

In addition, some jobs take a very dim view of CCJs and defaults, which may limit opportunities to get out of debt. And a lack of a credit card makes internet shopping/holiday bookings etc much harder or more expensive, and less secure if something goes wrong.

But yes OP, we all end up in a wooden box, and there's no point in being the richest person in the graveyard. However, it's how you wish to spend you time until the end that matters.

If you're happy with a pay as you go phone, in a dead end job, living at home with your parents then carry on as you are. You don't say whether you're in a relationship or not, but once you're past your mid-twenties, the domestic situation you describe isn't going to make you a very good prospect as a future life partner for anyone.

If you want to make a bit more of yourself and your life, including maybe sharing it with someone else, then deal with past mistakes with creditors, and in short, grow up.

anna_1977 · 1 February 2016 at 12:20PM

How do you know you won't ever need credit in your life?

Mummyto4kids · 1 February 2016 at 2:09PM

You don't now what kind of credit you might need in the future. Your creditors could take out CCJ's and then if your home situation changes with regards to living with parents you then possibly wouldn't pass a reference check to privately rent a home. You might want a car on HP, a lot of utilities now report to credit agencies, there could be all sorts of reasons why you need credit in the future.

Some employers require credit checks, e.g. working in financial services so this could also affect your future career. It could impact future relationships if you have to explain this attitude to a partner.

In addition I agree that if you accrue debt you should have to pay it back.

enthusiasticsaver · 1 February 2016 at 2:57PM

If you pay them off and maintain good and responsible finances from now eventually you will be able to access credit, take out a mobile phone contract, rent a flat etc etc. I agree also it is the responsible and sensible thing to do. No one forced you presumably to take out debt and as such you have a moral obligation to pay it back. I think you will regret it in the future if you start off with a black mark against your name. Also the costs could rise significantly if you get taken to court for these outstanding debts. So yes you should bother to pay it back.

Kitten868 · 1 February 2016 at 3:25PM

I take it your feeling pretty rubbish about everything. Is there any support for you?
Why are you in debt and what are they?
Don't give up on yourself that easily

could you talk to your mum? Or stepchange?
I don't think ignoring debt is a good idea but I think your self worth needs a boost too. Xxx

byjimini · 1 February 2016 at 11:54PM

The thing is, when you do sort these things out you find you're not living looking over your shoulder, waiting for demanding letters in brown envelopes or apprehensive when the phone rings or there's a knock at the door.

It's pretty crap now but there's a whole future ahead of you. A partner, a mortgage, kids, life experiences. Get the debts cleared and start building yourself a platform of savings, you'll feel so much better for it in the end.

midnitegremlin · 2 February 2016 at 3:45AM

pelic wrote: »

I have defaults but I live with my parents... My credit rating is still going to suck even if I pay them off so what's the point... They can send me letters or phone calls but these are ignored anyway...

All the debt has been sold off to debt collectors for peanuts... I am looking for no new credit and will not require any ever.

Once the defaults drop off they can still chase me if they want, and I understand I will not get any credit from these companies again, but that doesn't really bother me.

I now think the best thing to do is nothing and continue my life. At the end of the day I will end up in a wooden box like everyone else, I don't want credit, so best option yes?

This sounds like simply going legally bankrupt could be an idea? Would stops the debts.

EssexHebridean · 2 February 2016 at 4:06PM

Did you accrue the debts in the first place? If so, why on earth would you even think about not bothering to at least attempt to clear them? I assume you wouldn't walk into a supermarket and, having no intention of ever shopping there again, calmly pick up a packet of steak and a bottle of wine from the shelf and walk out without paying? If the answer is "No, of course not!" then have a think about why you're happy to consider not paying your debts. If the answer is "yeah, probably" then we can't really help you much here, can we...