Default advice

wantamortgage

Sorry, just researching DMP etc and it seems that even if I did arrange a plan it would still be recorded as a default as I would be paying less than originally agreed. 

Kind of just seems like I should just walk away entirely and leave it for the 6 years then it’s wiped? Which goes against my beliefs to be honest. 

I suppose there is no harm in just talking to them but if I’m paying back a debt I would have liked it to show on report and start building that rating back up but from what I can see even if I do that it will just keep it on my file and potentially for longer. 

wantamortgage

Other option I suppose could be my wife gets loan and we pay it off entirely and then have repayments fixed which we can handle. But this does seem bonkers and would mean debt is larger with interest. 

sourcrates

I`m suprised Barclaycard have held on to the debt for this long, most likely only due to the FOS complaints, now that is over with, you may find BC will sell this on pretty quickly, a debt purchasing company such as Cabot or Lowell or other pond dweller will probebly pick it up.

This may be good news for you, you cannot remove the default, and the status you see on your credit file is just a monthly update of that default, that will remain for 6 years, however the company that buys your debt will almost certainly be able to offer a discount to you, but the downside is it won`t happen straight away, the  longer they hold on to an account, the better discount can be obtained, they will try for the full amount to begin with.

Do not even concider getting a loan to pay it with, thats just plain daft, the debt has defaulted, so no further interest or charges can be added, just make an arrangement to pay off the balance, whatever you can afford, or wait till its sold, then do so.

You won`t get positive marks for repaying a defaulted debt, its the default that does the damage, credit files can only be healed with time, once the default goes.

wantamortgage

Thanks sourcrates. I thought they would keep hold of it didn’t know they dealt with those debt recovery people. 

The FOS complaint was completed in Jan this year so maybe they will contact soon, probably got a lot on due to current situation. 

Do you reckon it might be worth contacting Barclay card before they sell it on or just wait? 

ddonq1412

I would asking them to wipe off the last 6  months interest. I would ask if they could offer a partial payment to satisfy it. did you max out the card before it default what was the card limit at time of default.  it will still show as a default for 6 years after it was adding to your credit file paid or not.

sourcrates

wantamortgage said:

Thanks sourcrates. I thought they would keep hold of it didn’t know they dealt with those debt recovery people. 

The FOS complaint was completed in Jan this year so maybe they will contact soon, probably got a lot on due to current situation. 

Do you reckon it might be worth contacting Barclay card before they sell it on or just wait? 

Companies do not have the resourses to deal with delinquent debt, its normally sold on within 3 months of default.

You may find BC call centre staff will not be able to access the account if its been frozen, you can try if you wish, but may be better to wait until its either sold, or they may just sit on it unactioned, its impossible to predict unfortunatly.

wantamortgage

Thank you all, helped we work through this. I’ll sit and wait a bit see what happens then if nothing in a few months I’ll call Barclays. 

Thanks for letting me bounce this off you all. 

wantamortgage

ddonq1412 said:

I would asking them to wipe off the last 6  months interest. I would ask if they could offer a partial payment to satisfy it. did you max out the card before it default what was the card limit at time of default.  it will still show as a default for 6 years after it was adding to your credit file paid or not.

It wasn’t maxed out, the thing that kind of finally triggered me to contact them was that they had increased the limit to 8500 and I was only paying the minimum payments. This increase just kind of sent me over the edge and I could just see a big black spiral if I didn’t do something. 

jazzyja

How are you proving to your parents where this deposit money is going? I mean they're giving you 50-60% of your house but can't let you have 5k out of it? (drop in the ocean in terms of 60% of a house) bit backwards if you ask me. Theyre old fashioned but happy to let you continue to pay rent for even longer/pay whacking interest rates because of this default. Doesnt make sense. You say it was a bad time in your life, maybe explain that to your parents. 

macman

If it really eases your conscience, you could make voluntary payments after the 6 years have elapsed. Or give it to a deserving charity instead?