Any reason to pay back debt no longer on credit file?

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Bamble531
Bamble531 Posts: 4 Newbie
in Credit file & ratings
Hi guys, just looking for some advice that I'm struggling to find the answer to online...

I have a default on my file with an outstanding balance of £2380. I have been paying off just £5 a month for a long time while I pay off more urgent debts (This one is frozen and I am not paying any interest). I have finished paying off all other debts (woohoo!) and this is the last one but I am wondering whether I should bother to pay it off or just keep paying the £5 a month for the rest of my life or if I ever had any more cash flow... the default will drop off my file in October 2020 and money is going to be tight for the foreseeable future.

SO my question is; if I carry on paying this token amount, is there anything they can do to harm my credit file after the default drops off in 2020? Is there any reason at all to actually make an effort to pay the balance?

Thanks in advance for any advice!

Comments

  • singleandskint
    singleandskint Posts: 12 Forumite
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    If you stop paying they may apply for a CCJ which will be added to your file for a further 6 years. They are able to do this anytime for 6 years following your last payment as your account with them is not statute barred
  • Bamble531
    Bamble531 Posts: 4 Newbie
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    Yeah I understand that, I'm not talking about stopping paying I'm asking if there is any reason to pay more than the £5 a month
  • StokieBecks
    StokieBecks Posts: 4,997 Forumite
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    In an ideal world the money you were paying towards other debts should now be allocated to this one but no one can decide that for you. If they ever ask you for income and expenditure you mustn't show you have more than the £5 you are paying them if you choose to continue with £5 payments.

    A settled deb will look slightly better on a credit file than an unsettled one but if you can only afford the £5 then stick with that.

    Have you done yourself a new budget to take the previous set repayments into account? Don't undo all your hard work by thinking that money is now spare cash and spending it
    £2 Savers Club for 2022 #12
  • Bamble531
    Bamble531 Posts: 4 Newbie
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    Sorry maybe I'm not being clear enough in what I'm asking.

    AFTER the default comes off my file in 2020, would only paying £5 a month have any potential negative repercussions for me?
  • sourcrates
    sourcrates Posts: 28,879 Ambassador
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    Bamble531 wrote: »
    Sorry maybe I'm not being clear enough in what I'm asking.

    AFTER the default comes off my file in 2020, would only paying £5 a month have any potential negative repercussions for me?

    No, none whatsoever, except if the creditor then chose to take matters further, such as court action, you pay whatever you feel you can afford, but paying such a small amount the debt will take many years to be repaid, and as explained before, as your paying it, it will never become statute barred.

    Try saving up and making an offer to settle at some point, at least you would be rid of the debt.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Bamble531
    Bamble531 Posts: 4 Newbie
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    Thank you!

    Yes I'm planning to pay it off, I just know that it will be impossible for me to do that before the default drops off my file and want to make sure I don't end up with another default or a CCJ.
    My plan is to continue paying the £5 a month, making the occasional lump payment when I have the funds and then paying it all off later in life.
  • StokieBecks
    StokieBecks Posts: 4,997 Forumite
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    You can't get another default for it. Unfortunately the CCJ is always a risk but you should be ok as they are getting regular payments from you.
    £2 Savers Club for 2022 #12
  • macman
    macman Posts: 53,098 Forumite
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    StokieBecks wrote: »
    You can't get another default for it. Unfortunately the CCJ is always a risk but you should be ok as they are getting regular payments from you.

    Indeed they are, but that's assuming that they are happy to wait another 40 years to recover the o/s amount at £5 pm..
    No free lunch, and no free laptop ;)
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    Once it's off your file you could make a final settlement request.

    However, be aware they can still apply for a CCJ and they can also ask you for a statement of earnings, detailing you incoming and outgoings, and insist that a higher amount is paid each month,
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