What should I do?

Eagerbeaver39

I’m looking for advice on the best course of action to take. Some context:

According to Credit Karma, I have two defaulted credit card debts:

1. Tesco Bank £3100 (default date Jan 2019)
2. Lowell’s (Natwest) £1600 (default date Aug 2019)

The start date for (1) was 2016, and for (2) 2013. I’m certain I originally defaulted earlier than the dates given, but these appear to refer to my defaulting on a repayment plan. I probably shouldn’t have been lent the money in the first place (had a gambling problem back then and wasn’t working) - I don’t know if that’s relevant at all. In any case, if we assume that those default dates are correct and that I am liable for those amounts (I have no issues if that is the case), then I believe I am approaching statute barred status on both. 

I am returning to work for the first time in several years in October, and as such will be in a position to clear them both reasonably quickly thereafter, but I’m not certain if this is the best course of action. As I understand it, my options are as follows:

1. Pay them both off in their entirety 
2. Negotiate partial settlements (likely at much reduced amounts) but have partially settled markers on my file (?)
3. Wait until they both become statute barred and unenforceable (but risk CCJs and have both debts remain on my file)

I just want the monkey off my back. I’d love to be able to buy a property one day (ideally within the next 3-5 years) so really want to avoid a CCJ (how likely the creditors are to pursue one I don’t know?). If you were in my shoes, what would you do?

Please let me know if you need any more info to advise.

RAS

You'd be best to sit tight and wait. Once your finances adjust to working again, start to save into an emergency fund.

And check the other two credit agencies as well. 

Creditors need to send a letter before action to you to start court proceedings, in which case, ask them to produce the CCA. If that is found then make arrangements to pay a small sum monthly. Chances are they'll offer a partial settlement, although PRA aren't generous. That's when you can use the emergency fund, if you want.

If by any chance they send the letter before action to an old address, you can either pay off the CCJ within a month, or overturn based on the incorrect address and then pay the debt off. 

fatbelly

As above but just to add that now you have done a credit search your present address will be visible to the creditors so they have no need to send whatever they want to send, to a old address.

The formal letter before action comes with a reply form and 30-day limit. That is the first letter that you should reply to.

Rob5342

I agree with the above. Remember that if you have made any payments to them since they defaulted then that will have reset the statute barred clock. Also, they will dtop off your credit report completely six years after the default date, regardless of whether you make any payments or not.

You can make complaints about affordability, but you have to complain within 6 years of the event or three years of becoming aware that you can complain. That can be hard to argue. Complaining will acknowledge the debt and reset yue statute barred clock so I wouldn't go anywhere near that yet. 

ManyWays

Partial settlement markers make little difference to your chance of future credit and anyway they will drop off 6 years after the default date, so next year. So not something to worry about.