Persistent debt question

danguy

Hi. Currently om on my 27 month persistent debt letter (received June), 36 months in march. My debt will be paid some time next month as I have increased my payments massively.


My question is. once all the debt is paid, is the slate wiped clean as for being in a situation of persistent debt or does it stay on record for some time after? I plan on using the card again next year.


Thanks

[Deleted User]

The lender will almost certainly keep a record for some years. It doesn't appear anywhere else.

Willing2Learn

Please correct me if I am wrong. But I thought that the fact you were originally making minimum payments is recorded on your credit files, and will continue to be visible on your file for a further six years. Could be wrong though...

[Deleted User]

Ye, the payment history will show, a it did before.

What I meant was that there is no specific 'persistent debt' label that is added.

Ben8282

Willing2Learn wrote: »

Please correct me if I am wrong. But I thought that the fact you were originally making minimum payments is recorded on your credit files, and will continue to be visible on your file for a further six years. Could be wrong though...

The minimum payment marker will be visible only for the most recent 2 year period where thwe full payment information is shown. Beyond that only the account status is shown which hopefully will be 0 if the OP has not been missing payments.

Ben8282

danguy wrote: »

My question is. once all the debt is paid, is the slate wiped clean as for being in a situation of persistent debt or does it stay on record for some time after? I plan on using the card again next year.

Is the card currently closed for further spending or have restrictions been placed on your using the card? If not, wha is your exact cause of concern?

Ergates

danguy wrote: »

Hi. Currently om on my 27 month persistent debt letter (received June), 36 months in march. My debt will be paid some time next month as I have increased my payments massively.


My question is. once all the debt is paid, is the slate wiped clean as for being in a situation of persistent debt or does it stay on record for some time after? I plan on using the card again next year.


Thanks

In terms of the "Persistant Debt" classification - as soon as the balance drops below £200 then the status is revoked, and you're free and clear. Alternatively, if your balance is still > £200 next march, then the card provider will check your payments for the 18 months - i.e. from Sept 2018 (when you got your first letter) to March 2020 - and if you've If you've payed off more balance than interest, then the status will, again, be revoked.

If you've still been paying off more interest + charges than balance, then they'll stop your card.

danguy

Ben8282 wrote: »

Is the card currently closed for further spending or have restrictions been placed on your using the card? If not, wha is your exact cause of concern?

Thanks for all replies so far. No the card has not had any restrictions imposed on it. I was just wondering if this is likely to cause them to drop my credit limit or raise interest rates or that a history of minimum payments will cause my next purchase to still be in a persistent debt situation.



I had not been missing any payments, just being silly with my money and spending it on frivolous things. only paying the minimum payments but since may this year I decided enough was enough and decided to sell off a lot of my possessions and pay off the debt from £5200 in may to £2000 balance owing now.


Thanks.

Ben8282

While of course it is impossible to give a definite answer, if your credit limit has not been reduced at this point I can't see that repaying the balance would cause the card issuer to reduce it at that point. They my even increase it.
As for the interest rate, that is unpredictable. I recently had my interest rate increased on a Virgin Money card which is used and paid in full every month. As they have not ever had a single penny of interest out of me and there is no currently forseeable likelyhood of them ever getting any interest, I don't care but at the same time their action does not come across as customer friendly.When you have finished repaying this card I hope that you will not get yourself back into the position of having an interest bearing balance on the card and will use it for purchases and repay in full every month. That way the interest rate will be unimportant. Once you are out of persistant debt you are out of persistant debt unless you conduct your account in a manner which puts you back into persistant debt. Also, the persistant debt status is not shown on your credit files. It is only the card issuer themselves who is saying this.

chattychappy

If you're paying just minimums, it is well worth paying an extra £1 if you can. Whilst this won't stop persistent debt actions, it will avoid a minimum payment marker which will make your credit file look better.

Dandytf

chattychappy wrote: »

If you're paying just minimums, it is well worth paying an extra £1 if you can. Whilst this won't stop persistent debt actions, it will avoid a minimum payment marker which will make your credit file look better.

Persistent debt procedures I'm part way through via aqua.
Though Ive declined to follow mse advice to use help2save savings to part pay off aqua.
I am hoping to avoid any action during q1 2020.
Once I continue to save until then ,other than 1 pound added to minimum is there a simple way of calculating what aqua persistent debt interest payments concerns are.
I could have missed it from earlier reply,.

E.g. Do I check 12 mths statements add interest occurred
Versus 12 repayment amounts.