Looking for advice regarding a default account with shop direct

Paulwjs

So when I turned 18 I opened up a very.co.uk account (Very bad idea) and couldn't afford to pay for some of the items I ordered while I was a student at university.

Fast forward now and I'm 23 paying off all my debts and the only one left is a huge debt from shop direct to the sum of 3806gbp. It was defaulted at the beginning on 2014 and I haven't heard anything from them since, no letters, no phone calls, the account was closed but I am still getting interest charged to the account. i believe when it defaulted the sum was around 2400gbp.

Now I've been on a few different forums and would like some advice from someone more knowledgeable than myself. I've been told since it's been almost 3 years now to just forget about it and wait til the 6 years passes and the debt is written off and that if they wanted to they would have sent me a court order by now for a CCJ. On the other hand I've come into a little bit of money and could maybe offer a F&F to the sum of somewhere around 1000-1500.

My question is it worth paying it off or should I just try to forget about it? It's the only thing affecting my credit badly and the thought of them springing a CCJ on me after 5 years or so is very scary as I don't want that hanging over my head for another 6 years, I want to raise my credit in order to get my first mortgage in the next few years. My goal was to have a decent credit in a years time (despite the two defaults on my account. One to very, one to EE).

What would you do in my situation? I can only realistically afford to pay around 25-50 max a month to this debt which means it would take a good 5+ years to pay it off which I doubt they'd be interested in.

Looking forward to hearing what you think on the matter, thanks in advance.

Also i was told when an account is defaulted it shouldn't be accumulating interest? Though that could be completely wrong.
Paul.

SHill

Look you need to face up and take a little responsibility of what you have done. You bought the items so why not pay for them.
You say you want a mortgage but that's a loan over 25 years. I bemused at your logic. Don't think you can forget about the money that is owed the company will want it. It was agreed when you signed up with catalogue company.
my advice would be is to contact citizen advice bureau as soon as possible. Get some proper help.
You need to get your finances in some order. This will help not to make the same mistake in future. Don't bury your head in the sand. Get the right support and help. Being in debt can make people very stressful, worry have sleepless nights and get depressed. However with help you can ensure you tackling this problem the right way.
The idea of waiting for a CCJ doesn't really appeal to me and I think you don't like the idea either.
Just get the advice, budget and clear the debt off. Learn to save for the mortgage and learn to economies. Learn to say no every now and then too.

National_Debtline

Hi Paul,

Paulwjs wrote: »

My question is it worth paying it off or should I just try to forget about it? It's the only thing affecting my credit badly and the thought of them springing a CCJ on me after 5 years or so is very scary as I don't want that hanging over my head for another 6 years, I want to raise my credit in order to get my first mortgage in the next few years. My goal was to have a decent credit in a years time (despite the two defaults on my account. One to very, one to EE).

If you don't want the threat of a CCJ hanging over you and you want to try and improve your credit file then the full and final offer would seem the most sensible. There are quite a few things to consider in a situation like this. Firstly, there is legislation (the Limitations Act) that does limit lenders to having 6 years to take court action but you are no where near this at the moment and to wait another 3 years is not going to help your credit file (even if they don't sue you). I am not sure I would agree with the previous advice you have had (about the fact that if they were going to sue you they would have done it by now - some creditors do wait until the 11th hour).


With regard to your credit file, a partial settlement is better than a default but a fully settled debt is better than a partially settled debt. There is no guarantee (even if the creditor accepts your full and final offer) that your credit file will improve in the next 12months, it may take longer than that, but you will be closer to achieving that goal without an outstanding default.

Make sure the creditor agrees, in writing, to the terms of your lump sum payment, before sending a penny. We have a sample letter that may help. Good luck,


Laura
@natdebtline

Nasqueron

Don't forget also even if it's been 3 years, they may sell the account to a debt collection firm whose only business is to chase people like you and they can and will go all the way to CCJ which will then be on your account as well