Should I re[ay defaulted credit card debt from 12+ years ago

I_Like_Cake

Hi...due to my own stupidity i racked up around £15k in credit card debts around 2010 with no way of paying back. I ofc defaulted on repayments and spoke to Step Change who suggested making a token payment per month. The debt has been moved to various companies over the years and is now with Lowell. I have been paying £1 a month on each of two debts ever since.

My dad passed away last year and I inherited around £50k in a property. Should I use this to repay the debt? Part of me thinks it's the right thing to do, but I feel like my dad is paying for it and that's not what his money should be used for. I also question the way I was allowed to spend/given credit by these companies, but I know being an immature idiot not thinking of consequences was my fault. Thankfully I've grown up a lot since, never had another credit card, have only a mortgage as debt which I pay each month etc. I checked my credit file and there's no mention of any default/debt, tho my credit score isn't perfect, it's fairly high - CheckmyFile says 818 and rates me as good, whatever that really means.

I now finally have a decent job and ofc could pay more than £1 a month. I tried to take advice from Step Change again, all I needed to know was should I repay this debt in full, and what happens if I don't, or what happsn if I accept their offer to settle it with a 60% reduction (and is it possible to negotiate that even further down), but because I am not taxed at source in my job, and therefore will need an accountant to calculate my tax, Step Change said I need advice from another service that deals with the self employed - I tried this but ended up in masses of questions about work, tax etc, when really all I need to know is should I pay, shuld that be in full, should I use the lump sum when I gain inheritence or set up a rehular payment monthly,and where does that all leave me in the future in terms of credit file and if I ever wanted a credit card again in the future.

Any advice would be grealy appreciated. Pls don't judge my bad decisions, there were reasons, which I won't give as excuses, and I think the credit crd companies took advantage too, but in the end I know I should have behaved more responsibly. It doesn't sit well with me speding inheritence, which I think should be used for stuff my dad would be proud of and his hard work rewarded with me investing for my future etc, but I'd also like to settle this, tbh it feels like a different person ran up these debts, the decisions were so silly and immature, I would never do anything like that again. But again, if things had taken different turns I might have taken different decisions to end my debt worry, and nothing could be further from my thoughts these days.

MorningcoffeeIV

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No point in blaming the card companies - credit was offered, but didn't need to be spent. All you can no w deal is deal with the situation you're in.

Rather than endlessly pay £1 a month, why not make an offer (it could be very low) and have done with it? Your dad's not paying for it - you are.  And he may well be pleased to know you're taking mature decisions.

Disregard any of the pretend credit scores. Lenders assess you on their own criteria - and taking a squillion years to repay a defaulted debt rarely rates highly with them.

PRAISETHESUN

There's two 6 year timers in play here - the 6 years for defaults appearing on your credit files and a 6 year timer for the debt becoming statute barred. The 6 year timer for the default has long since passed (hence it no longer appearing on your credit files), but by paying £1 a each month, you have been repeatedly "acknowledging" the debt and resetting the 6 year statute barred timer. If you stop paying now, there's a decent chance enforcement action can/will be started at a later date in the next 6 years, which could lead to a CCJ.

Personally I'd suggest a very lowball offer, otherwise leave things as they are now. If/when they start to demand you pay off more of the debt, then you negotiate again. Otherwise, if you feel like you want to just want to put this chapter behind you, then ask for a full and final settlement figure. There's no issue with a partial settlement in my view, especially since the default is no longer on your credit files.

sourcrates

Nothing you do will make the accounts re-appear on your credit files, they have long since dropped off due to data limitation, however your constant token payments have kept the debts, alive and active.

Your strategy should be twofold, first off, send CCA requests under section 77/79 consumer credit act, to ascertain the enforceability position of each account, and once that information is known, act accordingly with making full and final settlement offers using the template letter available from the National Debtline website.

I_Like_Cake

Thanks for your replies, appreciate the advice and time taken to give it. I'd like this put behind me so will use your advice to move this forward