Author Topic: advice needed on small debt  (Read 6778 times)

needcredit

  • *
  • Posts: 2
advice needed on small debt
« on: Jan 18, 2011, 07:22:48 PM »
Hi,

could someone please advise if its better to pay off 2 outstanding debts from a few years ago?

basically one debt is only 377 but it was 5 years ago - is it worth just waiting 1 year then it gets removed from my account?

if it does get removed will it still have any affect on my ability to get a mortgage in the future?

The other debt is 2250 and has been defaulted for 3 years - i was thinking its probably best to just save up and pay this off over the next year? (by that time the other one ^ would have been removed?)

I have dodged these debts for years now but realise i need credit so my question is - shall i keep dodging/pay one off - or just pay them both off???

Thanks in advance

NC

P.S

these were on my experian report - are there any other sites i need to check??
 :-\

esterdsl

  • *
  • Posts: 3
Re: advice needed on small debt
« Reply #1 on: Jan 19, 2011, 11:21:31 AM »
I suggest you to please take a legal advise from debt settlement lawyer.Because he  know every thing about debts and they give you various ways to sort out your problems.

James Falla

  • Hero Member
  • *****
  • Posts: 655
Re: advice needed on small debt
« Reply #2 on: Jan 19, 2011, 05:20:04 PM »
Hi there needcredit
 
Ultimately if you continue to dodge these debts, your credit rating is neever going to improve.
 
In terms of the first debt that you mention, I think you are referring to whether after 6 years the debt will be statute barred. This happens is a creditor has not attempted to colect their debt for 6 years. After this time, the debt still exists but the creditor is not allowed to take legal action against you to collect it. Do you know whether you have received any collection requests within the last 5 years. The fact that you may have moved house in that time but did not tell the creditor would not be adequate defence I am afraid.... If it is not statute barred, you need to pay it or settle it.
 
In terms of the other debt, if you are in a position to save up money towards paying this off, I suggest saving up to 50% and then offering a lump sum settlement. If accepted, this would get the debt settled but it would still only be marked as settled on your file.
Debt Expert & Author
beatmydebt.com

needcredit

  • *
  • Posts: 2
Re: advice needed on small debt
« Reply #3 on: Jan 21, 2011, 11:22:40 PM »
Hi,

thanks for the reply, it was my understanding that after 6 years it is removed from your credit file whatever the situation (paid or unpaid) is that not the case?

"
  • Credit accounts "in default". These details are deleted after 6 years from the date of default.
  • Settledaccounts: these are deleted 6 years from the date the account issettled or when the last payment is made unless a "default" was registered.            "  - from insolvency helpline website.
    if so then surely its best to offer 50% for the 2nd debt but let the first 'expire' so to speak..

    thanks
    NC

  • James Falla

    • Hero Member
    • *****
    • Posts: 655
    Re: advice needed on small debt
    « Reply #4 on: Jan 25, 2011, 12:39:43 PM »
    Hi NC
     
    If your debt remains unpaid after 6 years then no, it is not removed from your credit file. It remins an unpaid debt which has not been satisfed or settled. As such, the creditor involved will simply continue to add further default notices on the file stating the debt exists and remains unpaid. I was speaking to a client earlier today how has a debt outstanding from the year 2000 and it is still very present and evident on their credit file.
     
    At the end of the day the best thing to do is always settle all the debt you have if you can.
    Debt Expert & Author
    beatmydebt.com

    Kurt

    • *
    • Posts: 3
    Re: advice needed on small debt
    « Reply #5 on: Jan 26, 2011, 09:48:18 AM »
    I am in the process of trying to help my son to recover monies owed to him, its not a business debt, so unsure of how he will stand legally, or if infact  it can be pursued. Is there a legal eagle on here that would be willing to advise on the best course of action? If so I can e mail further details.

    James Falla

    • Hero Member
    • *****
    • Posts: 655
    Re: advice needed on small debt
    « Reply #6 on: Jan 26, 2011, 05:37:07 PM »
    Hi Kurt
     
    I assume that your son is owed money by an individual in the UK? There are processes that he can follow to try and recover his money but there are also associated costs. If you want to post more detail about the nature of the debt he is owed, I can advise further.
    Debt Expert & Author
    beatmydebt.com

    gregory

    • *
    • Posts: 1
    Re: advice needed on small debt
    « Reply #7 on: Feb 05, 2011, 06:32:23 AM »
    I advise you to contact your creditors. You can ask them to lower prices, but do not stop there. If you have a reasonable amount of money you can afford to pay the balance to them, ask them to deal with you. You could also ask them what the minimum amount they are willing to pay the credit
    <a href="http://debtsireland.com">Debt Advice</a>

    JohnSmith2011

    • *
    • Posts: 8
    Re: advice needed on small debt
    « Reply #8 on: Feb 05, 2011, 04:46:53 PM »
    its best to deal with a debt rather than ignore it, eve if it does go over 6 years it doesnt mean it will get written off straight away.

    AshleyPark

    • Sr. Member
    • ****
    • Posts: 63
    Re: advice needed on small debt
    « Reply #9 on: Feb 07, 2011, 10:09:04 AM »
    If you do not settle these debts they will remain on your credit file. If you do choose to open contact with these make sure you have a plan in mind as to how you are going to repay them. Go through a full income and expenditure test to establish how much, If any money you have left after paying for you essentials,Council tax,rent/mortgage etc.  If you are still unsure contact a professional. Most companies have a free phone number and will asses your situation and suggest options available to you over the telephone.
     
    Lee
    Ashley Park Debt Solutions Ltd
     http://www.ashleypa

    shocksoc335

    • Sr. Member
    • ****
    • Posts: 86
    Re: advice needed on small debt
    « Reply #10 on: Feb 13, 2011, 03:36:29 PM »
    Hi if you have not acknowledged a debt ( written to the creditor ) or made payment on the debt the debt will become statute barred under the limitations act when 6 clear years pass. This means it cannot be pursued via the court after this point. However if you have received a county court judgment on the debt, the debt can be recovered but only by sending bailiffs out etc.

    All debts are removed from your credit reference file 6 years from the date they are entered onto your file.  If the debt you are referring to is an overdraft the debt can be recovered at anytime as long as they creditors has asked for leave of the court to collect the debt after a 6 year period.

    You could in theory offer a full and final on both debts starting by offering as little as 30%.

    Good luck
    Supporting 'Practical Debt Advice' by Elizabeth Mc

    James Falla

    • Hero Member
    • *****
    • Posts: 655
    Re: advice needed on small debt
    « Reply #11 on: Feb 15, 2011, 06:06:31 PM »
    I think it is important to make clear that a debt does not become statute barred simply if you do not make a payment or acknowledge the debt. In fact it only becomes statute barred if the creditor themselves has made no attempt to collect the money for the 6 year period.
     
    After a debt is accepted as statute barred, it still stands however, no legal action can be taken to recover it.
    Debt Expert & Author
    beatmydebt.com

    shocksoc335

    • Sr. Member
    • ****
    • Posts: 86
    Re: advice needed on small debt
    « Reply #12 on: Feb 15, 2011, 07:35:56 PM »
    Hi James,

    I think we are both saying the same thing - my understanding is that a simple contract debt such as a credit card or loan becomes statute barred under the limitation act and it clearly states this under the civil procedure rules that it cannot be recovered via court action after 6 clear years have passed whether the creditor has not attempted to collect on the debt or the debtor has not responded by way of acknowledgment or payment.

    The creditor can still try and collect on the debt after this time frame but realistically what can they do! The only way they can collect on the debt is by asking for leave of the court again under the CPR. If it is granted then they can pursue via court action only at this point.

    If the debt is a benefit overpayment they can collect after 6 years by taking from ongoing benefits. If it is a working tax credit overpayment as it is a debt due to the crown they can collect for a 20 year.

    I am not suggesting in any way shape or form that a debtor ignore a debt as there can be severe consequences.  In fact the contrary. From my experience debts are passed onto to debt collections agencies for very little money who chance their arm with threatening letters to recover debts that they should not be trying to collect on - thats why the OFT have put sections in debt collections guidelines sections 2.13 and 2.14 ( Creditors/DCA's should not be pursing debts that are statute barred under the limitation act.

     
    Supporting 'Practical Debt Advice' by Elizabeth Mc

    James Falla

    • Hero Member
    • *****
    • Posts: 655
    Re: advice needed on small debt
    « Reply #13 on: Feb 22, 2011, 03:52:44 PM »
    Hi Shocksoc,
     
    Under the limitation act, a debt cannot be statute barred if the creditors has made an attempt to collect the debt within the last six years, or if a CCJ has already been issued, or the debtor has acknowledged the debt or made a payment.
     
    As such, if you are receiving requests for payment from a creditor and you ignor these for 6 years, you can not argue that the creditor is out of time and the debt should become statute barred simply because 6 years have passed. The statue barred rule will only come into play if the creditor themselves has made no attempt to contact you or collect the debt during the six year period d herefore they are out of time to do so.
     
    Debt Expert & Author
    beatmydebt.com

    FinanceGenie

    • *
    • Posts: 9
    Re: advice needed on small debt
    « Reply #14 on: Mar 11, 2011, 06:09:47 AM »
    I would suggest

    1. I suspect, given the small amounts, this may already have been written off . If not it was sold to a debt collection agency who added at least 20% to the amounts.

    2. ?I highly doubt it, these are no outstanding fines, just debts and relatively small ones.

    3. Dig up what you have in correspondence from them and start mailing. This is something you should have done a lot earlier. Certainly initially you will not need a lawyer.