Implications of paying or not paying debt from past credit cards

frescobaldi

I have £15.5k of debt from 4 old credit cards (£1.5k, £5k, £5k and £4k respectively. These debts are from around 15 years ago and are no longer impacting on my credit score, although I do have one default (ironically from a card balance I managed to clear!). As things stand it will be 2025 before I can apply for a mortgage. I want to know the implications of either paying or not paying the remaining debt. Are collection agencies likely to pursue such sums through the courts? If I were to make offers what percentage would be realistic? What is the best strategy to prevent further damage to my credit record from any court order that might ensue? At the moment I just get the usual letters designed to frighten people into paying. One piece of advice I received was not to communicate with these creditors at all. Is that the best approach? Thank you so much for any guidance you are able to give.

fatbelly

And when did you last make a payment to these debts, or otherwise acknowledge them in writing?

I can't really answer your question on the implications of payment/non-payment until I know that

frescobaldi

Thank you for responding. I did write to them a year ago. I think the agency has since changed on a couple of the debts. Does that make any difference? At the time I explained why I was unable to make minimum payments.

fatbelly

That does sound like a written acknowledgement.

So if you have never had a six-year period when you did not acknowledge the debt by payment or in writing then you cannot defend a court claim on the grounds that it is statute barred.

The implications of making payments now are that your debt will reduce. Your credit file will be unaffected if the defaults were more that six years ago

And the implications of not making payments now are that your debt will not reduce, is likely to be sold to a debt buyer and may be subject to a court claim. If successful, and not paid within 30 days, then a county court judgement will be recorded on your credit file which will stay 6 years. The ccj can be enforced by bailiffs, attachment of earnings, charging order, third party debt order or statutory demand.

Having said that, most debts never see court action  (As a rough guide only around 1 in 10). They just get passed around.

You may also have other defences to a court claim.

sourcrates

frescobaldi said:

Thank you for responding. I did write to them a year ago. I think the agency has since changed on a couple of the debts. Does that make any difference? At the time I explained why I was unable to make minimum payments.

Was there ever at least a six year gap in payment or written acknowledgement by yourself ?