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Default Notice/Partial Settlement Confusion
Knittygritty804
Posts: 13 Forumite
Hi, this is my first time posting and I really appreciate anyone taking the time to read and help me.
Between myself and DH we have six separate debts, totalling roughly £6,000. We are on a DMP and making payments each month as agreed. It feels like we'll never pay them off though and I'm trying to get my head around understanding things a bit better rather than just sticking my head in the sand.
Specifically what I'm trying to understand is the default notices on the accounts and when they will 'lapse' (if that's the right word?). and what this actully means. Is it 6 years from the date it was applied to the account, or 6 years from the date the debt is paid off, or something else entirely?
If it is six years from the date they were applied to the account, then they will be taken off next year. Each company keeps writing to us with offers of partial settlement, but I've always thought that a partial settlement would stay on the account for 6 years after payment is made, and that it would look worse on our credit file, I'm not sure if this is right though?
If the default is going to be taken off next year, would be any worse off if we did make a partial settlement?
I realise I have rambled a lot and clearly do not understand how things work fully, so I appreciate your patience and understanding and any advice or insight anyone could give.
Between myself and DH we have six separate debts, totalling roughly £6,000. We are on a DMP and making payments each month as agreed. It feels like we'll never pay them off though and I'm trying to get my head around understanding things a bit better rather than just sticking my head in the sand.
Specifically what I'm trying to understand is the default notices on the accounts and when they will 'lapse' (if that's the right word?). and what this actully means. Is it 6 years from the date it was applied to the account, or 6 years from the date the debt is paid off, or something else entirely?
If it is six years from the date they were applied to the account, then they will be taken off next year. Each company keeps writing to us with offers of partial settlement, but I've always thought that a partial settlement would stay on the account for 6 years after payment is made, and that it would look worse on our credit file, I'm not sure if this is right though?
If the default is going to be taken off next year, would be any worse off if we did make a partial settlement?
I realise I have rambled a lot and clearly do not understand how things work fully, so I appreciate your patience and understanding and any advice or insight anyone could give.
0
Comments
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Hi,
Defaults stay on file for 6 years in the UK, each one will have a date of default on it, on the 6th anniversary of that default date, following the next update, the entire entry will vanish from your file.
It doesn't matter if its being paid, settled, partially settled or ignored completely, the whole entry vanishes after 6 years regardless.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
If the default comes off your record shortly it will probably be in your best interest to take a partial settlement. But negotiate their offer, dont just accept what they have offered so far, undercut this and see how much you can save. You can then use any surplus money to pay off your other debts.
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Thank you both so much for taking the time to reply, that really clarifies things for me and gives me hope that one day I can be out of this mess. Thank you ☺️0
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