Old Debt pay in full or not?

markhp

I have a query...

I have 2 old debts, around 15 years old so not showing on my credit file, current balances 3k and £600 being paid now to debt collection agencies

Due to poor management of my finances I'd been paying nominal payments for many years (stupid I know!)

Fast forward until I had my lightbulb moment a few years back and have got my finances in order and paid all other debts off (around 30k)

I now have just these 2 remaining, my wife and I are selling our house and will have enough equity to pay both in full

Moving in with family until later in the year when we plan to take out new mortgage

My question is that if I didn't pay in full, would they reappear on my credit file? Other debts I paid in full didn't reappear so not sure what to do


Thanks in advance for any advice

[Deleted User]

If you’ve been making payments towards them then they aren’t statute barred and still enforceable.

They won’t reappear on your files unless they go for a CCJ - then this will show on your files.

You need to either carry on making payments or pay them off in full to settle them - you can always contact them and ask if they’ll take a lower settlement offer to close them off.

[Deleted User]

If you agree a settlement with them, nothing would appear on your files.

If you just stop paying, they'll possibly go for a CCJ, which will stay in your files for another 6 years and never become unenforceable.

Willing2Learn

markhp wrote: »

… My question is that if I didn't pay in full, would they reappear on my credit file?...

Whatever you pay, whether in full or partial settlement, will not appear in any of your credit files

markhp

Thanks for the replies

I would never not pay at all, it's whether to pay in full or seek a reduced settlement and if that would then show in my credit report

I know payment in full wouldn't show as I've already paid other debts in full and they didn't show up

[Deleted User]

Whatever payment offer you make it won’t show.

Unless it goes to a CCJ

sourcrates

markhp wrote: »

Thanks for the replies

I would never not pay at all, it's whether to pay in full or seek a reduced settlement and if that would then show in my credit report

I know payment in full wouldn't show as I've already paid other debts in full and they didn't show up

Once a defaulted debt had dropped off your credit file, nothing can bring it back, so whatever you do, will have no effect on your credit file whatsoever, i would settle for the lowest amount possible.

cymruchris

It's great that you are in a position to be able to settle them on the proceeds of a house sale - but (I'm sure you know this) don't actually tell them how you're going to raise the funds to make a full settlement offer to get a discount. I would go for the approach of saying that you're struggling a little to make payments (let their alarm bells ring) - and suggest that you have a family member willing to offer a reduced payment settlement if the offer was right If you just say 'Oh I'm going to have lots of money very soon' they're unlikely to give you any/much of a discount.

markhp

Thanks to all for the help

PixelPound

cymruchris wrote: »

It's great that you are in a position to be able to settle them on the proceeds of a house sale - but (I'm sure you know this) don't actually tell them how you're going to raise the funds to make a full settlement offer to get a discount. I would go for the approach of saying that you're struggling a little to make payments (let their alarm bells ring) - and suggest that you have a family member willing to offer a reduced payment settlement if the offer was right If you just say 'Oh I'm going to have lots of money very soon' they're unlikely to give you any/much of a discount.

Not sure saying struggling to pay as they will be then thinking breathing space / debt advice as per FCA rules. However the "friend helping" ploy could work - another is saying has several debts and seeing what discounts you can get to make the money go as far as possible.