Debt has finally caught up with me

Rob5342

Mine say "IN DEFAULT" on clearscore. Lenders dont always report to all three cras so there might be some where they dont show up. Some of my old payday loans for example show on Clearscore but not Credit Karma. 

sourcrates

Big "D" for default will show as the status, along with the date it defaulted.

That status will then be repeated every month for 6 years, after which the whole entry will automatically be removed.

You will receive default notices demanding full repayment of your balance in the post prior to this.

The collection companies are currently just chasing your arrears, not your full balance, so your debts have not yet defaulted, check all three credit reference agencies and don`t rely on 3rd party agents such as clearscore whose information is limited.

RAS

As sourcrates mentioned previously, your credit union is more likely to go for legal action than other creditors. The first you may hear is a letter before action.

Have you checked all three credit record agencies? If your credit union aren't on any, you need to start to engaging with them now about reduced payments. 

You don't need to wait to until every one is defaulted. You do need to work out your SOA and to decide how much you can afford to pay your creditors in total allowing for emergency funds etc. Then decide how much to pay each creditor and start paying them once they default.

Start paying each of the creditors once they default, other than the credit union, who you need to pay now if they are not on your credit records.

andy26599

RAS said:

As sourcrates mentioned previously, your credit union is more likely to go for legal action than other creditors. The first you may hear is a letter before action.

Have you checked all three credit record agencies? If your credit union aren't on any, you need to start to engaging with them now about reduced payments. 

You don't need to wait to until every one is defaulted. You do need to work out your SOA and to decide how much you can afford to pay your creditors in total allowing for emergency funds etc. Then decide how much to pay each creditor and start paying them once they default.

Start paying each of the creditors once they default, other than the credit union, who you need to pay now if they are not on your credit records.

The Credit Union account was on my TransUnion report and has defaulted, along with my Admiral loan. Everything else currently showing as "In Arrears".

andy26599

As an aside, I had my interview today with the vetting agency who deal with Security Clearance, which I need for my job. I was totally up front with them and honest about my finances, and they were happy that I was being trustworthy. 

ByzantineByron

That's good to hear. I have just entered into an IVA and had to inform my work and the separate company that issues my license as I'm in the financial industry. Honesty is always the best policy with this stuff and I imagine it played a big part in them being happy with your job.

ByzantineByron

I'm also going to add to the chorus of people insisting you tell your wife. The first night I realised I'd run out of road I told my wife. She was shocked but understood that I had a plan and that I was going to get myself out of my own mess.

andy26599

@sourcrates quick one for you. All of my accounts are now in default, and I have started to engage with some of the debt recovery people. I have this month had a couple of new agreements pop up on my equifax credit file via Clearscore, one from Lovell, one from PRA Group and one from Perch, these are for my defaulted accounts where they have been passed on. The original agreements in default have been removed from my Clearscore account completely. 

So while the defaults have dropped off (I understand that they will remain on my credit file for 6 years) will the new agreements with the debt recovery people (2 of which I've yet to set up a payment plan with or even talk to) stay on there for 6 years AFTER I've paid them off? I assume that paying these payments on time will then increase my credit score over time?

fatbelly

The new owners should move the old default date across. Most debt buyers are pretty good at doing this.

Then the whole entry drops off at the 6-year point as normal

sourcrates

But if that is not the case, and the new default date is way out, then you need to complain about it, but usually the same dates are transferred over with no issues.