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Should I Default

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Hi,

I've got myself in quite a bit of mess in terms of debt. I had the persistent debt letter from Virgin CC and that card is now blocked as I did not agree to increasing payments, does this count as an agreement to pay? If so, would I be better off allowing this to default to get that marked on the credit file now rather than it dropping off 6yrs after paying it off? What is the process for defaulting? Once defaulted does interest stop and can I then return to paying without further issue?

TIA 

Comments

  • EssexHebridean
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    Yes a default will stop the interest. Should you let it default, if you are the stage where you are saying you're in a  mess, then probably yes, as it sounds like some form of debt remedy would be appropriate for you.

    If you put together your SOA (Statement of Affairs) using the link in my signature, then "format for MSE" and copy and paste to this thread, we can take a look and try to help you identify your best course of action from here. You need to make the SOA open and honest and ensure that it refers to your current situation - not what you think you should be paying out each month, or guessed amounts. he best way is to get together a year's worth of card and bank statements to inform the category entries to make it as accurate as possible. 
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00
    Balance as at 31/12/23 = £112,000.00
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    she/her
  • Fixmeup
    Fixmeup Posts: 20 Forumite
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    Thanks @EssexHebridean

    Just to clarify, with them stopping the card, this is worse than a default? It doesnt appear as a marker on my Credit Report but I might be missing something.

    I'll look to put together a SOA.
  • EssexHebridean
    EssexHebridean Posts: 21,505 Forumite
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    Without knowing how they plan to show it on your credit file, assuming they will eventually, it's difficult to know whether it's "worse" or not. Ultimately though, if you are aiming to sort the situation you are in our your credit file will - or at least should - be of little interest to you for a few years anyway. I'd say get yourself back on an even keel first and then start worrying about everything else. 
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00
    Balance as at 31/12/23 = £112,000.00
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    she/her
  • Fixmeup
    Fixmeup Posts: 20 Forumite
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    I have decided I need to do the DMP but it's working out how the future looks before jumping feet first. I dont want to be in a position that my credit file is stuffed 6years after paying it off.
  • EssexHebridean
    EssexHebridean Posts: 21,505 Forumite
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    edited 12 October 2022 at 11:30AM
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    Fixmeup said:
    I have decided I need to do the DMP but it's working out how the future looks before jumping feet first. I dont want to be in a position that my credit file is stuffed 6years after paying it off.
    If you get the defaults in place then that starts the clock ticking on when things will drop off your credit file. 
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00
    Balance as at 31/12/23 = £112,000.00
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    she/her
  • RAS
    RAS Posts: 32,960 Forumite
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    Fixmeup said:
    I have decided I need to do the DMP but it's working out how the future looks before jumping feet first. I dont want to be in a position that my credit file is stuffed 6years after paying it off.
    If you get the defaults in place then that starts the clock ticking on when things will drop off your credit file. 
    Which translates as stop paying now and don't get AP marker by coughing up £5 per month or making intermittent payments.
    The person who has not made a mistake, has made nothing
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