Multiple Defaults

junglejuice

Hi,

I'd really appreciate some help with a question if someone could kindly oblige!

I don't think you need to hear my full background story, so to save your time, I'll skip to the point.

I have credit card and loan debts with 5 creditors totalling around 30k. 2 of these have been passed to DCA's and 3 still with the original creditors.

I have defaults against 3 of the above accounts (The 2 that have passed to DCA's and 1 with the original creditor). My question is, if I default against the remaining 2, can my credit report or situation actually get any worse or will it have no worse an effect? Is one default on your credit report, just as worse as 5 defaults?

I'm thinking if I default against all of them and stop making payments altogether, I can probably save that money for a few months and offer full and final payments to them all in an attempt to get them off my case. Otherwise these debts will never be repaid in a lifetime which is no good for anyone, me or the creditors.

I fully appreciate that even if I'm successful with F&F offers, it will still be a couple of years until my credit improves and a full 6 years until the defaults are wiped out entirely, but just wondered your thoughts.

Thanks

Arleen

Tehcnically 5 defaults are worse than one, but given your situation I imagine that it will be borderline impossible for you to get any type of credit either way.

But your approach is not the right way! If you want to repay them contact the good folks at http://www.stepchange.org/ as they can help negotiate a payment plan that will allow you to repay the debts. They can also help to get the interest frozen and negotiate other terms with lenders. Just going into radio silence is not good.