Defaults

jones_guitar

Hi, I have fresh defaulted debts. I am taking the approach to ignore all letters, with no payment plan in place, until a court threat arrives.

Surely, if logical serves me correct, if these letters never arrive, eventually discounted letters should start to arrive?

fatbelly

Yes, probably.

If you want to offer a settlement, you can always take the initiative and make an offer

Brie

Are any of the debts for essential things like council tax, gas, electric, mobile?  You may want to arrange something with those as they may be escalated more quickly. 

If it's credit cards, personal loans you might want to sit back and ignore them and see if they take any action before they become statute barred in 6 (or whatever) years.

Scott_Weiland79

I would not take this approach, while your ignoring letters your credit file will be taking a hammering, plus depending on the debts interest/charges will potentially be getting added. Some companies wont offer reduced settlements, plus the longer you leave it the greater likely hood is that legal action will commence and more potentially charges.

Speak with stepchange, do a budget, see what you can afford to repay. Once they contact creditors interest/charges get frozen in the bulk of cases. Dont stick your head in the sand and make the mistake i did. 

I have a ccj as I ignored letters, I got covid 19 a few years back and got took into hospital for a few weeks, net result when i was in hospital they gave me a week to set repayment plan and i didnt so they served a ccj. Me and my partner now cant get a mortgage together for at least another 2 years even though the ccj is satified.

jones_guitar

Hi Scott, in all honesty, you should get a pre court letter. I'm not interested in paying them. My approach is not an example for anyone to follow. Agreed.

Scott_Weiland79

I did I was in hospital in intensive care when that came. It was only weeks later when I came home i saw that, then a few weeks later a ccj served.

I dont get your approach i would love  for you to try and make me understand why.

jones_guitar

Because once you start making payments, you have admitted liability.

jones_guitar

Hi Scott, I decided to request the CCA's and set up token payments.

Interestingly, a friend of mine ignored two credit cards for years and they did nothing, and they became barred with him doing nothing. He really didn't care. He won't even talk about it, I tried asking him what discounts were received. He just said he throws the letters in the bin. He might even have given them an earful on the phone!

Once you are negotiating with them, they have the upper hand in a way. If you really don't care like my friend, you have the upper hand.

Sorry you were ill.