Increase payments or not?

Fireflyaway

I have some old debts, around £27,000 in total, going back 14 years when I was young and financially immature. The bank lent me this when I was living at home working in a call centre on 14k a year! Stupid of them but more stupid of me I know. Needless to say I defaulted on the loan.
I strangely don't think about it much day to day as its disappeared off my credit file and my income is OK now. However I am still paying back slowly via pay plan at just £27 a month. I just never changed the amount when my circumstances changed. Paying at this rate I will die before the debt is cleared.
My question is do I :

1 stay as I am
2 increase the payments
3 save up and offer a final settlement

I'm hoping the loan won't suddenly shoiw up anywhere after so long if I settle ? I want to buy a house and don't want to jeopardize it.

January2015

Fireflyaway wrote: »

I have some old debts, around £27,000 in total, going back 14 years when I was young and financially immature. The bank lent me this when I was living at home working in a call centre on 14k a year! Stupid of them but more stupid of me I know. Needless to say I defaulted on the loan.
I strangely don't think about it much day to day as its disappeared off my credit file and my income is OK now. However I am still paying back slowly via pay plan at just £27 a month. I just never changed the amount when my circumstances changed. Paying at this rate I will die before the debt is cleared.
My question is do I :

1 stay as I am
2 increase the payments
3 save up and offer a final settlement

I'm hoping the loan won't suddenly shoiw up anywhere after so long if I settle ? I want to buy a house and don't want to jeopardize it.

I would send off CCA requests to see if they hold the correct paperwork to make the debts enforceable before doing anything else.

sourcrates

Step (1) CCA request to each relevant account.

Step (2) Dependant on the results of the requests for information, you can either send them offers to settle, or if they can't find the correct paperwork, you could just walk away.

At that point it would be up to you how to proceed.

CCA request info and template letter here :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Information-about-your-agreement-under-the-Consumer-Credit-Act-%28sole-name%29.aspx

Fireflyaway

Thanks guys. I never thought to check with the CCA. I don't even know what it is or what I'm checking for?!
I know the accounts are old but I have been paying since they defaulted so surely that means I have already accepted liability? On the very odd occasion I have missed a payment the collectors have been very quick to chase me. I'd rather get it sorted but sometimes its easier just to push it to the back of my mind.

January2015

Fireflyaway wrote: »

Thanks guys. I never thought to check with the CCA. I don't even know what it is or what I'm checking for?!
I know the accounts are old but I have been paying since they defaulted so surely that means I have already accepted liability? On the very odd occasion I have missed a payment the collectors have been very quick to chase me. I'd rather get it sorted but sometimes its easier just to push it to the back of my mind.

It's not about accepting liability, it's about whether the creditors have the correct paperwork to enforce the loans. If they don't you have the option to walk away (although they will still be owed they cannot be enforced) or to use this fact as leverage to obtain a low settlement figure.

Edit: send off using the template links provided by Sourcrates and come back and let us know what they provide. I wouldn't know what's enforceable or not, but other people will provide you with sound guidance or point you in the right direction.

sourcrates

Fireflyaway wrote: »

Thanks guys. I never thought to check with the CCA. I don't even know what it is or what I'm checking for?!
I know the accounts are old but I have been paying since they defaulted so surely that means I have already accepted liability? On the very odd occasion I have missed a payment the collectors have been very quick to chase me. I'd rather get it sorted but sometimes its easier just to push it to the back of my mind.

Basically as long as a balance is outstanding on your account, you can make a request for a copy of your credit agreement.

If the creditor cannot comply, then the debt becomes unenforceable in court, and you may not have to pay it.

As your accounts probably date from before the year 2000, different rules apply, if certain terms are missing from what they send you, the debts are automatically unenforceable, case law exists to support this.

It's always worth doing, as if they can't comply, you can settle each account for virtually nothing, or you could just walk away.

Wouldn't it feel best to put these to bed once and for all just in case the creditor decided to enforce its rights to get there money from you ?

Without a valid credit agreement the creditor can do nothing.

Fireflyaway

It would be amazing to settle for a small amount, seems almost too good to be true. I will send the letters and see what happens. Thanks everyone.