5 years since default. Pay it or leave it?

Tonyfromleeds

Hello, I have finally pulled my head out of the sand and I'm looking at sorting out some old debts that have crippled my credit rating for years. The one outstanding debt is for £3540 with Tesco Clubcard. The default was 5 years ago. I haven't contacted them or paid anything for 4 years. I now need to sort it and I was going to offer a partial sum as full and final settlement although after some research I've learnt they will only accept 100%. So can either leave it until the 6 years pass and it is cleared from credit records (what's the chance they'll just send me a CCJ as the 6 year expiry approaches?) or I pay it in full and have to borrow from family and put the rest on my wife's credit card. I really need to do this because next year is like to in a position to apply for a mortgage. Any advice or experience with Tesco greatly appreciated. :)

tomtontom

I was taught that if you borrow money you pay it back.

That advice has always served me well.

HappyMJ

Tonyfromleeds wrote: »

Hello, I have finally pulled my head out of the sand and I'm looking at sorting out some old debts that have crippled my credit rating for years. The one outstanding debt is for £3540 with Tesco Clubcard. The default was 5 years ago. I haven't contacted them or paid anything for 4 years. I now need to sort it and I was going to offer a partial sum as full and final settlement although after some research I've learnt they will only accept 100%. So can either leave it until the 6 years pass and it is cleared from credit records (what's the chance they'll just send me a CCJ as the 6 year expiry approaches?) or I pay it in full and have to borrow from family and put the rest on my wife's credit card. I really need to do this because next year is like to in a position to apply for a mortgage. Any advice or experience with Tesco greatly appreciated. :)

If they apply for a CCJ against you then you've got 28 days to pay it in full and it won't appear on your credit report so you could chance it.

fermi

HappyMJ wrote: »

If they apply for a CCJ against you then you've got 28 days to pay it in full and it won't appear on your credit report so you could chance it.

In reality, more, as you would have 14/28 days until default judgement, and then another calendar month to paid to avoid it going on your credit files.

So 44 (ish) days minimum after the claim form hits your mat.

glentoran99

Tonyfromleeds wrote: »

Hello, I have finally pulled my head out of the sand and I'm looking at sorting out some old debts that have crippled my credit rating for years. The one outstanding debt is for £3540 with Tesco Clubcard. The default was 5 years ago. I haven't contacted them or paid anything for 4 years. I now need to sort it and I was going to offer a partial sum as full and final settlement although after some research I've learnt they will only accept 100%. So can either leave it until the 6 years pass and it is cleared from credit records (what's the chance they'll just send me a CCJ as the 6 year expiry approaches?) or I pay it in full and have to borrow from family and put the rest on my wife's credit card. I really need to do this because next year is like to in a position to apply for a mortgage. Any advice or experience with Tesco greatly appreciated. :)

If it was only 4 years ago you last paid anything they still have two years to enforce the debt, up to you

Thrugelmir

You'll have to declare the debt on your mortgage application. Irrespective of paying it or not in the next 2 years. Doesn't reflect well on you as a potential borrower.

Superscrooge

If you want to apply for a mortgage next year, you need to get your credit file in order ASAP, otherwise you are unlikely to get a mortgage and certainly wouldn't get a mortgage on the best terms.

Would you lend money to someone if you knew they didn't pay it back last time?