Paying down UK debts from overseas before coming home...?

Teh_Russ

We're seriously considering returning to the UK next year from the US. Just got to the point where I think we're both exhausted with life here and have had enough. Too much stress. I know the UK is hardly stress-free, especially right now, but it's an improvement on the States!

When we left the UK in 2016, it was in a bit of a hurry due to family circumstances over here, and we left some bills, loans, etc unpaid and never really followed up on paying them afterwards. It's a total of around £30k. Of course, they've all defaulted now and are with various recovery companies. No CCJs or anything, which is good, but it'd be nice to at least get them under control and in the process of being paid off so our credit isn't completely in the toilet when we go back - it's not likely we'll be able to afford six months' rent upfront for a house!

What would be the best way to approach this? Contact the creditors directly, or maybe go through a solicitor? According to a debt counsellor I spoke to, we've been out of the country too long to qualify for any of the formal programmes, like a DMP or IVA. Or (I'd rather not do this) do we wait it out until we've been gone 6 years and they become statute-barred and fall off our credit report?

Any and all advice is welcomed. 

Galloglass

There is no point in discussing which bills to pay and when until there is an idea of how much surplus income or capital you might have.

Why not put up a Statement of Accounts or a draft one at least.

https://www.lemonfool.co.uk/financecalculators/soa.php

Smashingitnow

I'm a Brit expat too. One of the issues here is if you haven't being paying anything to any UK financial institution for 4-5 years, you will have no credit file markers and you're not going to get credit including credit companies coming to arrangements with you.

You would be better dealing with this when you have a UK address. Of course nothing to stop you saving now so you can make the payments when you're back.

If you plan to default on 30k on a permanent basis, relying on the time period to then yes I guess you're better off staying abroad.

But unlike others who default, and have used the six years since default to build a positive credit record (cards, loans, utility bills, electoral roll), you will have zero records. You will struggle to get cards and it will take some time (years) to build up a credit record.

Smashingitnow

One question....how do you know they are with recovery companies? Sounds like you are receiving mail from an address in the UK and are aware of the debts being chased...so it isn't really the oversight you mention (not sure how you leave the UK for a foreign residency in a hurry...visas and permits tend to take quite some time!)....was the original plan to stay six years? 

Teh_Russ

Smashingitnow said:

One question....how do you know they are with recovery companies? Sounds like you are receiving mail from an address in the UK and are aware of the debts being chased...so it isn't really the oversight you mention (not sure how you leave the UK for a foreign residency in a hurry...visas and permits tend to take quite some time!)....was the original plan to stay six years? 

My credit report on Credit Karma shows who's holding the debts right now. I also get the occasional email from some of them. 
We all have dual citizenship, having lived in the US for an extended period before (I'm a naturalised US citizen, my wife was born in the US) so we were able to just pick up and leave - we did it all inside 10 days due to illness in my wife's immediate family.

The original plan was open-ended, but we're just getting worn down by a combination of crappy working conditions, COVID and the febrile political environment - it's not good for the kids. 

Smashingitnow

Aha. I understand now. Well as someone else has said, withotut knowing your financial situation it's difficult to know what your options are but what you've told us know makes me wonder if you actually make a full and final settlement offer whilst you are still abroad without mentioning your intention to return - I imagine they'd be prepared to give quite a discount on the 30k since you are very difficult to trace, dual nationality, in the States, and as far as they know never planning to return.

Socajam

Make sure that you receive statement()s showing that the balance on your cards are zero when paid off.