Default or AP

ryan008

Hello, 

Trying to keep it short, I had a lot of financial issues about 3 years ago, had a cancelled Iva too which has completely ruined my credit as couldn’t remove! Still have 3 years remaining of around 8-10 defaults around 8-10k of debt.

Recently went away and unexpectedly had a huge bill with EE over £500 had a credit limit but turns out doesn’t stop charges my fault end of day!

I can’t really afford it all at once, but I’m kinda stuck as they’re offering arrangement to pay over 6 months however is this just as bad as a default just because I have all other debt setup with Lowell etc and have already defaulted 3 years ago so I’m not sure if it’s worth defaulting and having another default for 6 years? 

any help appreciated
thanks!

sourcrates

With 10 defaults on your file, I wouldn`t lose any sleep over one more.

ryan008

Even though they’ve only got 3 years left? Yeah that what I was thinking too but just thought as last 3 years never missed a payment on anything etc so kinda didn’t wanna ruin it but at same time with amount defaults I have 3 years old it’ll still take time re build I guess 

sourcrates

Either way it will leave a negative mark, an AP marker will stay on file 6 years after you finish paying the debt, a default is 6 years regardless of what you do, not much in it really.

ryan008

Oh okay thank you, they’ll both be quite negative then….as the default gets older will my credit slowly get better or nothing drastically till defaults drop off? Sorry if I’m asking stupid questions!

sourcrates

Every lender has a different scoring process, as they all cater for different markets if you like.

Defaults have less impact the older they are, some lenders only look at your last 3 years credit history say, others the full 6, or anywhere in-between.

Until they are all clear of your file, you won`t get credit from mainstream lenders, but you might do with those that cater for bad credit.

Best advice really is don`t rush to get credit again, once you can, you have seen what happens when you get over stretched, its best to try and avoid that happening again.

DankVielen

ryan008 said:

Hello, 

Trying to keep it short, I had a lot of financial issues about 3 years ago, had a cancelled Iva too which has completely ruined my credit as couldn’t remove! Still have 3 years remaining of around 8-10 defaults around 8-10k of debt.

Recently went away and unexpectedly had a huge bill with EE over £500 had a credit limit but turns out doesn’t stop charges my fault end of day!

I can’t really afford it all at once, but I’m kinda stuck as they’re offering arrangement to pay over 6 months however is this just as bad as a default just because I have all other debt setup with Lowell etc and have already defaulted 3 years ago so I’m not sure if it’s worth defaulting and having another default for 6 years? 

any help appreciated
thanks!

Your Credit Record is trashed so why not just DMP your debt, stop paying all unsecured debt, tell each creditor that due to a change in circumstances that you can't see changing in the foreseeable future you will not be making any more payments to the account.

Pay the money you were paying to your creditors to a savings account for an emergency only fund.

Start my making a formal complaint that you set the account to limit charges and you reasonably believed you would not get any fees because they were protecting you

Then if they do not agree to eliminate it ask for a deadlock letter so you can raise the matter with the ombudsman

https://www.commsombudsman.org/raise-dispute/ee#:~:text=EE: we can review your,on our Working Together page.

Maybe you can appeal EE charge, look for their ADR.  I hear people on consumer shows getting these reduced if it was deemed unfair, e.g. settings led you to reasonably believe you would not incur fees. 

I thought the days of exorbitant roaming charges were over.

Obviously for EE they have your number, but if you don't care about it then they can just become another creditor who can whistle for it.

If you make a payment to lowell you extend the 6 year statute bar

Some people use DMP to wait for an offer, I had that plan then decided to wait the whole 6 years

Do you expect to be able to take out a mortgage in the next 6 years or buy a car on credit? If not then why do you care about a credit record, I have lived without caring about credit record for more than a decade.  I prefer to live on just my income, I pay my energy when they produce a statement, I pay for my food when at the checkout.  Yes there have been hard times but I adapted to my circumstances.

Money is invented on their computers, they did not work for it, did not cash in investments, did not inherit it and they will sell it for pennies in the pound.  We all fall for this but all I am saying is do not feel bad.

Start with this MSE Sticky on DMP's, then decide if you want to do one to wait for a 60% off discount or just to wait for it to become statute barred in 6 years. I paid so much in interest and kept the debts alive for years before I realised that I could just DuMP it all.

https://forums.moneysavingexpert.com/discussion/6496941/in-debt-and-wannabe-debt-free-first-steps-to-take-are-here-please-read-then-ask-questions#latest

ryan008

Many thanks for your detailed response so yes. About 3 years ago now…I stopped paying all my unsecured debt..all of them defaulted they’ve been on payment plans ever since with Lowell and Cabot, have had many offers for 60 percent if not more on some…but only partial settlement so I left them and keep making minimal payments. 

Just I didn’t know weather to let one default with EE if it comes to it as the others are all 3 years old now…but credit is absolutely ruined anyways and no I don’t be getting a mortgage for a good 7-8 years anyways. 

Thanks for your help.