Need some advice about defaults.

JD1987

HI,
So I bought a car on a 5 year lease purchase around oct 18, the car was written off by a family member but wasn't covered by insurance due to drink driving. So now i'm paying 250 a month for a car I don't have. I've kept up the payments but I am just wondering if it would be more beneficial to use that 250/month to pay down credit card debt.
The finance company have said if I fail to pay they'll just write it off as a bad debt and place a default on my credit file.
My instinct is to keep paying so I don't run into trouble when my fixed mortgage is up in 2 years but at the same time if the effects of that default are likely to be less than the roughly 10k outstanding then i'd be better off taking the default.
Any advice much appreciated.
Regards,

JD

D3xt3r5L4b

I highly doubt they will just "write it off" and brush it under the carpet

JD1987

They've said they do not sell on debts. I don't know why maybe as there is no asset anymore.

PaulW922

Are you saying that the finance company has actually said that they will not pursue payment of the outstanding debt if you do not pay?

JD1987

Yes, I rang just to see what would happen if i missed a payment due to the effects of coronavirus as i've been furloughed and they said they do not sell on debts to third parties and if I didn't pay they would just put a default on my credit file. The trouble is I just don't know how damaging that would be versus continuing to pay the full 10k.

[Deleted User]

A default with an unpaid debt is obviously much worse than a debt you're paying.