Default debt repayment

Creamgtm

Hi everyone,

I have unfortunately defaulted on an old student overdraft, I moved address and did not tell the bank which meant I didn't get any of the letters they sent me about the potential default, got a bit of a nasty surprise when I finally went into the bank to discuss the said overdraft and found out that the default had happened and they had sold the debt onto a debt collection agency. All my fault, I'm very angry with myself!

Anyhow, I'm lucky enough to have a house and have no intentions of applying for any credit in the next 7 years (I was intending on buying an engagement ring on a credit card but will have to save up the old fashioned way now), my question is... is there any point in me paying off the defaulted debt with the debt collection agency quickly? I am aware that the default will drop off my credit file after 6/7 years. Should I aim to pay it off within that time with the most cost effective and affordable repayments possible or is there a benefit to me of paying it off more quickly?

Thank you for any help or advice

cjmillsnun

There is always a benefit to paying it off quickly. Your default is marked as satisfied. I would take out some credit after a year or two as you will need a credit history and by not having anything it will all be wiped off except your mortgage and bank account and (if you have one) a mobile phone contract.

System

Creamgtm wrote: »

Anyhow, I'm lucky enough to have a house and have no intentions of applying for any credit in the next 7 years

So you're not going to change mobile phone provider, you're not going to change your house phone, your electricity supplier, your gas supplier? All of these companies carry out credit checks before accepting you as a customer and the phone, gas and electricity companies can and do ask for deposits and/or may insist on pre-payment meters.