How long till a default becomes satisfied please?

frugaller

Hi

My NewDay a/c has just defaulted after 6 months through a 12 month payment freeze. How long does it take to become satisfied? Or can they just stay as a default? First time I’ve been in this situation and not sure what happens now.

Thanks in advance

sourcrates

Hi frugaller,

Defaults stay on your credit file for, yup, you guessed it, six years.
Once you have repaid the debt, it will show as satisfied, until it falls off your file.
If the default was correctly added, nothing you can do will remove it any earlier.

frugaller

Aah, ok, so if you never pay it never shows as satisfied...? The satisfied bit confused me.

Davy_Jones_II

Correct, satisfied means you have paid. Are you able to do so?

A settled default looks better than an unsettled one, and will have less of an adverse effect on your ability to obtain credit, and on how much you have to pay for it.

owen_money

frugaller wrote: »

Aah, ok, so if you never pay it never shows as satisfied...? The satisfied bit confused me.

Satisfied or not it still falls off your file after 6 years, but as mentioned it does look better if shown as satisfied.

frugaller

Davy_Jones_II wrote: »

Correct, satisfied means you have paid. Are you able to do so?

A settled default looks better than an unsettled one, and will have less of an adverse effect on your ability to obtain credit, and on how much you have to pay for it.

Unfortunately not at this time, we have been told by Stepchange to just concentrate on the priority debts which still leave us with a negative balance before the credit cards etc. NewDay advised not to pay it for the 12 month freeze but I have no idea what will happen after this. I can’t see our situation improving as both myself and my husband are now on disability benefits

frugaller

On my Creditkarma report the NewDay debt is showing in my ‘Open Accounts’ as defaulted, will it stay in my open accounts for the 6 years or may it get moved to closed, or would it only get moved to closed if it was paid or partially paid?

Sorry for all the questions, I’m such a newbie

Davy_Jones_II

frugaller wrote: »

Unfortunately not at this time, we have been told by Stepchange to just concentrate on the priority debts which still leave us with a negative balance before the credit cards etc. NewDay advised not to pay it for the 12 month freeze but I have no idea what will happen after this. I can’t see our situation improving as both myself and my husband are now on disability benefits

Did you buy anything with the loan which you could now sell?

sourcrates

frugaller wrote: »

NewDay advised not to pay it for the 12 month freeze but I have no idea what will happen after this. I can’t see our situation improving as both myself and my husband are now on disability benefits

frugaller wrote: »

On my Creditkarma report the NewDay debt is showing in my ‘Open Accounts’ as defaulted, will it stay in my open accounts for the 6 years or may it get moved to closed, or would it only get moved to closed if it was paid or partially paid?

Newday will pass the debt to Moorcroft to collect on their behalf most likley, if that is not productive, the debt will be sold on to someone else, and it will be up to you to either pay off the debt, or provide the new owner with reasons why you cannot service it.


It will stay in open accounts until its either closed and written off or repaid in some way.

frugaller

Davy_Jones_II wrote: »

Did you buy anything with the loan which you could now sell?

No, it was mostly just to get us through, food, bills we couldn’t pay any other way etc.

Davy_Jones_II

If you are getting into debt just on your normal cost of living then you need to urgently look at how to fix this.

Could you post up a statement of affairs so that people can give you some informed advice?