Credit card default - should I make an offer?

Oldfield_Parker

Hi all,

I defaulted on a credit card in 2013 or 2014. Currently have £766 remaining. The debt company have offered for me to make a settlement offer and the ability to pay that over 3 months. I was wondering if it's worth doing? I read that a default disappears off your file 6 years after a default or 6 years after a settlement whichever is the earlier is this correct? If so, it seems it would be possibly worth making a settlement offer as it potentially will be wiped from my file next year anyway? TIA!

Willing2Learn

Just because an account is automatically removed from your credit files, six years from the date of default, then that does not mean that you are no longer liable for the account.

Basically, it is always good to settle your accounts.

Oldfield_Parker

Oh yes I know that, I pay some off every month which I was planning to do until I paid off the debt. What I meant was, they have contacted me to make them an offer for a lower amount in order to settle the debt but I don't know of this is a good idea or not, and if so, how much a reasonable offer may be.

Willing2Learn

Oh...how much per cent discount did they offer you? You can make them a counter-offer if you want. A reasonable offer would depend on how many months you have left in your schedule of regular account repayments. If the account would be settled in a matter of months then your creditor will not be as receptive to a larger discount.

Make sure you make your counter-offer in writing, using the letter template linked below as this will ensure you have a paper-trail (just in case the account re-appears somehow)

https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx#

jimbo26

The default will drop off your record six years after the default was registered, regardless if paid in full, not paid or partially paid.

Yes, it would be a good idea to pay it off at a reduced amount.

If it's almost 6 years old the chances are it has been purchased by several companies in that time and purchased at next to nothing in the pound. Offer £300 see what they say, nothing to lose.

Oldfield_Parker

They haven't made me an offer, just said that I can offer them one? It was via text so I will phone them and back it up in writing if its possible to settle. I was paying £50 a month, bit have reduced to a token £1 a month for the moment as have been unwell and working reduced hours currently but could stretch to paying more if it meant the account would be finished. Thank you for the template, I will definitely use that!

Oldfield_Parker

Fab! Thank you for your advice, I will try that!