Previous credit problems still haunting me!

matt8188

Hello,

Whilst at uni and for a couple of years afterwards I was very irresponsible with my money. I suffered a drug addiction which didn't help things and foolishly ran up the following debts between 1999 & 2004

Halifax - 3.7k unauthorised ovedraft (last payment of agreed plan made July 2005, no correspondence received since that time)
Abbey - 3.8 k unauthorised overdraft (last payment of agreed plan made March 2004, no correspondence received since Oct 2004)
Baclaycard - 1.6 k CC bill (last payment made Sep 2004, last correspondence received Jan 2005)

Unaware if any or all of these debts been defaulted or CCJ.

In the last two years I have cleaned up my act, have now got decent paid stable job and am engaged, renting a semi-detached house. I haven't had any correspondence with any of the above since I moved house in 2005 and have sinced moved again. I haven't tried to get any credit since this time. I originally agreed repayment plans in 2004 with these companies but have made no payments since 2005.

I am not sure what to do about these debts. I have had conflicting advice from friends and family. Some of informed me that if I ignore the debts until six years after the last correspondence (roughly 2011) the debts will be written off and cleared from my credit history. Many others have said I should stop burying my head in the sand and contact them to arrange new repayment plans. I believe if I were to do this, it would be roughly 2011-12 before I could comfortably pay them off.

What I want to do is get in good credit asap so that I can buy a house with my fiancee. She is very supporting however understandably doesn't want to rent for the rest of her life. She has perfect credit and roughly 4k in savings for a deposit on a house but is not on agood enough salary to afford a house (14k). Both our slaries combined we could afford a nice house.

I am really not sure what to do. Would I ever have good enough credit to get a house? My family said they would act as guarantors if this would help us get a mortage, would this make a difference? Could I get a sub-prime, adverse credit mortage now? Should I contact my debtors despite not speaking to any of them for three years? Will my credit be wiped off after six years of having no correspondence with the debtors?

I am nearly 28 and don't want to bew renting, with poor credit for the rest of my life. I am really unsure as to what the best course of action is? Any help would be much appreciated?

Kind regards, Matt.

Merlot

Welcome Matt from the Mortgage board, its a little late so most posters are in bed, you will get the most replies in the morning. I can't offer any advice to you on your question regarding the debts, but as it was me on the mortgage board who suggested you pop over here, I thought I say hello.

GeorgeUK

Hi matt

With old debt such as these, if you do make contact with the banks again, you may be able to make a reduced offer for full and final settlement of the debts. Not sure what effect this has on your credit history though as i believe defaults still take 6 years to fall off your history, which would still be a stumbling block for getting any credit.

Do you have savings that you can put towards making a reduced offer? (Not your GF's deposit).

Hopefully others will be along during "normal" hours to answer this, but you could also try contacting the free debt charities). payplan CCCS or CAB

It is 6 years from the date the last payment was made (or you wrote to them confirming you owed the debt in some way - telephone calls don't count). Try looking at your credit report (free at experian, but cancel within 30 days) and see what is on it. Don't bother paying to see your credit score - the various banks will work it out in different ways. Hopefully this will allow you to see when the defaults were and give an idea of when you could be clear.

There will be details on this in the forums somewhere - probably worth having a nosey around. I'm off for my beauty sleep.

good luck
George

matt8188

Thanks, will check with the credit reference agencies.

matt8188

Does anyone know if these debts will be cleared from my credit file after six years even if they are not paid.