Credit file and minimal contributions, what happens after 6 years?

nelsonmcfly

Hello all,

Looking for some advice on this one..

Around three years ago I borrowed from a huge range of loan providers and payday loan companies. Some of the most expensive loan companies going.. This was as a result of a crippling gambling addiction which I continue to try and fight. My owed amounts must have totalled around 20k.

A few months later and once it became apparent that I had hugely over borrowed with zero chance of paying back the credit at the original agreed rate, I entered into a DMP through StepChange.

After a few months I decided to not go through StepChange any further and dealt with my creditors directly, but I continued to make contributions (albeit very nominal) to all of the companies I had borrowed from.

Some of the companies re-wrote the loans (most didn't) with the amount I was now offering per month, e.g. one company took £38 per month instead of what should have been £150 and re-wrote the loan accordingly. This meant that the loan agreement was for 120 months and is still some 7-8 years away from being paid off (if I keep paying at that minimal rate).

Could anyone confirm what happens after 6 years though when supposedly all these agreements would drop off my credit file? I guess if the loan term is 120 months and I stopped paying £38, even after 6 years, it still shows as a new default? Is that correct? What about the ones which haven't been re-written, e.g. where I owe around £2,000 and I'm only paying £20 per month.

I can see on my credit file agreement to pay and the amount is reducing, but obviously it still shows as a default and I have no hope of getting any credit for the foreseeable future.

Thanks for your time..

ashp_2

Are you still getting a default every month?

I believe they will be removed after 6 years from the default date paid or not

nelsonmcfly

Just by checking on Noddle a lot are marked 'account has defaulted' and you can see the amounts going down.

sourcrates

Defaults will fall off your file after six years, no matter what you do, paid, unpaid, makes no difference.

You are still liable for the money, they just won't show any longer on your credit file.

nelsonmcfly

Thanks for the responses everyone.

I want to keep paying as much as I can afford as some people have told me it's likely that after 5 years or so, they will then hit try and hit me with a CCJ which is another 6 years. I gather by keeping up the regular payments this is unlikely to happen.

Finally, do they fall off my file 6 years from the default month or 6 years after the agreement was taken out?

Thanks.

ashp_2

nelsonmcfly wrote: »

Just by checking on Noddle a lot are marked 'account has defaulted' and you can see the amounts going down.

There will be a default date, you may not be able to see the exact dates on the free reports, I don't know. As above you will still be liable even once it's dropped off. If you stop paying after that time they could go for a CCJ providing it's not statue barred and the CCJ will then go on your report.

ashp_2

nelsonmcfly wrote: »

Thanks for the responses everyone.

I want to keep paying as much as I can afford as some people have told me it's likely that after 5 years or so, they will then hit try and hit me with a CCJ which is another 6 years. I gather by keeping up the regular payments this is unlikely to happen.

Finally, do they fall off my file 6 years from the default month or 6 years after the agreement was taken out?

Thanks.

From the date of the default not the date of tea agreement.