Default Query

WindowWasher1

Hi, Some advice would be massively appreciated.

I've had historic debt for around 10 years, paying circa 1k a month.

May 24 - I'd been around 28k in debt and struggling to bring it down. Spoke to partners parents who said they would pay the debt off if I could get it to 15k. 

Attempted to negotiate part settlements with creditors whilst keen to avoid defaults, spoke to Step change who said I'd stand a better chance of achieving part settlement if I missed payments ( hadn't missed a payment in 10 years prior to this) .

Update
Creditor 1 agrees part settlement ( around 60% of debt )
Creditor 2 and Creditor 3 - gave me a default notice, I've paid the minimum payments to get my account up to date to avoid a default.
Creditor 4 - Has issued me a default notice which I need to respond to in the next few weeks.
Creditor 5 - Has issued me a default on my credit file a few months ago. I was liaising via mail and they had sent default notice and default to previous address. 

I issued a complaint to Creditor 5, as although I should have updated my address on the website, i had sent postal correspondence ( from my new address) and liaised on email and hadn't had any warning about a potential default. I only realised I had 1 when I checked my credit file.

Just stuck what to do next. Creditor 5 said they would advise within 8 weeks whether they could remove the default ( this was 12 weeks ago) I have chased and no reply.

If the default stands, would I be better off allowing creditor 4 to default as well to allow myself the best chance to part settle. Creditor 2 and Creditor 3 I haven't made payments for 2 x months since getting my account up to date, so would i need to wait 4 x months for these accounts to default?

Personal circumstances - we are aiming for a mortgage, which is part the reason why partners parents were keen to settle the debt so I could save. I am paying them back monthly but at reduced monthly rate and interest free.

We think we would be ready for a mortgage within 3-4 years. I don't wish to obtain any other credit before then. 

Should I keep with the 1 default ( if creditor 5 keeps this on my file) or should I hold out, get my account up to date on creditor 4 and wait to see outcome?

Or should I just default all accounts, is 4 defaults no more damaging than 1 default?

Any advice appreciated- thankyou.

sourcrates

I think you may have been trying to plug the leaks for so long, by attempting to maintain contractual repayments, that its all got to a point now where you should just let nature take its course.

Anything other than contractual repayment and the lender can issue a default on your credit file, you are quite lucky you got one creditor to settle at 60%, usually they won`t budge much unless the debt has defaulted and been sold on, so you got one success there.

As for the rest, its pointless trying to stay on top of things if you can`t really afford to do so, the lenders are not doing anything wrong, they are just following CCA guidelines, most of the posters in debt free wannabee who are in debt management would all love their lenders to default as quickly as yours appear to have.

Defaults will show for 6 years regardless of what else happens, the older they are, the less impact they will have, once they are gone, your file can recover, you can still get a mortgage with defaults, you may not get the best rates, and you will need a specialist broker, but its not impossible.

WindowWasher1

Thanks for coming back to me, appreciated. 

A lot of the dilemma has been stressing over the future and what if's. Maybe focus on what's best presently?