Settling debts

tiga87

Hi All
I was hoping to get some advice on a few options on some debts I have.
Default £583 from 05/01/13, £2600 from 30/06/11 & £182 from 03/01/12. All with debt collection companies. I could settle the £182 one for the full amount. Is it worth my while to settle the others through negotiating or hope they fall off this year. I would appreciate some advice on this as I hope to get a mortgage next year. I appreciate Im not in a good position but I would like to change this. Thanks

fatbelly

From a credit file perspective, those defaults fall off in Jan 2019, Jun 2017 and Jan 2018.

If you are looking for a mortgage in 2018 the first unsettled default will affect your 'score' and will look better if settled or partially settled.

With the other two (really with all three), the danger is in them starting a court claim against you unless you know you can pay this in full within 28 days, as a ccj will have a worse effect, or have a defence like it being statute barred.

If you haven't been paying them then (2) may be close to being statute barred now as the contract should have broken down in Jan - Mar 2011.

If the companies are not actively chasing them, I think I'd negotiate a settlement on (1) and leave the others alone. Or leave the househunting till 2019.

tiga87

Do you suggest I call them all up and arrange to pay them monthly? currently dont have any substantial funds to fully settle the major one for £2600. Just not sure, I was wondering if i asked to pay the one for 2600 would that be for a reduced final settlement considering it will be statute barred end of june.

fatbelly

tiga87 wrote: »

Do you suggest I call them all up and arrange to pay them monthly? currently dont have any substantial funds to fully settle the major one for £2600. Just not sure, I was wondering if i asked to pay the one for 2600 would that be for a reduced final settlement considering it will be statute barred end of june.

You don't have the funds to settle debt (2) and you believe it will be statute barred in June. I believe (as I said before) that it will be SB earlier, maybe it is already. Read my post. Leave it alone.

Did I suggest you 'call them up'? No

Did I suggest you 'pay them monthly?' No

If you want to take up my suggestion of a settlement deal on (1) - a debt of £583 might settle for £200 - then make the offer in writing using the standard National Debtline letter.

But in your case I do think the better plan is to leave the lot alone, save for a deposit (sounds like you really don't have much saved yet) and do the househunting in 2019 when your file will probably be clear.