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Should I Default
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Fixmeup
Posts: 22 Forumite

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
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
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Comments
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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
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her1 -
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.
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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
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her2 -
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.0
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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.🎉 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
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her2 -
EssexHebridean said: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've have not made a mistake, you've made nothing2
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