6 year default looming

Paul556

I understand that after 6 years following a default on a credit card account, the debt is written off/cancelled and the slate is wiped clean as you can't be defaulted twice on the same debt?

I think my first debt 'expires' in August 2016. Does anyone know how it works from here on? Do I need to do anything or will the credit card company contact me and advise or what?

Thanks.

Carrot007

You understand wrong.

The default will not be on your credit report after 6 years (unless they get a ccj).

However the writing off is a 6 different years and is when you have no contact with them for that ammount of time.

Paul556

Ah thanks for that. So the standing order that is set up and has been for the last 6 years counts as contact I guess?

[Deleted User]

Yup - you'd have to stop paying and run and hide for 6 years for it be statute barred.

Big_Red_Machine

Carrot007 wrote: »

You understand wrong.

The default will not be on your credit report after 6 years (unless they get a ccj).

However the writing off is a 6 different years and is when you have no contact with them for that ammount of time.

The highlighted part of your quote is also incorrect.

'Writing off' a debt means nothing to the debtor at all, it's just an accounting exercise by the lender and could occur at any time after the debt has defaulted. Even a 'written off' debt is still owed.

OP - potentially if you stop paying now you open yourself up to the possibility of further action by the lender.

Paul556

Thanks, understood. I will keep paying the agreed amounts. But do I need to do anything regarding the credit score aspect? I mean do I need to contact credit agencies or does it happen automatically?

I've learned my lesson over the last 6 years but does it mean once my credit rating is 'clean' I can start rebuilding it?

[Deleted User]

You can start building a credit history whenever you want, assuming you can be accepted for credit.

Anthorn

Paul556 wrote: »

I understand that after 6 years following a default on a credit card account, the debt is written off/cancelled and the slate is wiped clean as you can't be defaulted twice on the same debt?

I think my first debt 'expires' in August 2016. Does anyone know how it works from here on? Do I need to do anything or will the credit card company contact me and advise or what?

Thanks.

As previously stated, debts don't expire. The danger is that if you don't pay you could get a CCJ which will be on the register of judgements for 6 years from the date of judgement.

What happens next in theory assuming that information about you is not on record and shared is that lenders you apply to for credit won't know about the default because it dropped off your credit history. It's something of a second chance but some people really should steer well clear of credit even in this second chance because in their case the past is a guide to the future.

Lastly it only matters if you want credit. If you don't then you don't really need to care. But let's face it, credit is what makes the world or at least our part of the world what it is.