To stop paying old debt

[OvertheRainbow2U]

Hello all, I have been paying old debts from around 20 years ago monthly for many, many years. It is a small amount that I am able to afford. The debt clearly gets sold on regularly as I am often offered a reduction from different companies if I pay a certain percent in full and they will wipe the rest. I am in no position to be able to do this. My question is - should I just stop paying now as it has been so many years? I will add that I have had awful credit ratings for the same amount of time due to the debt. TBH I ws only paying it to rid my terrible credit rating which never happened (it is old ,now non existent credit cards that were literally thrown at me when the kids were young and I was broke (still am btw:)) I'e heard about the debt being spent after 6 years - is this true? Also will I be in breach of anything if I stop? Any info gratefully received thank you

It’s shit! There is so much published about being responsible lenders, obviously if you are still paying it 20 years later it was irresponsible.

How much do you pay a month, what was the original debt and how much is left?

Irresponsible lending?! What about irresponsible borrowing?!

Sorry OP but being fed up of paying back a debt doesn’t mean you get to write it off.

Depending on how much you owe and what your income is a debt relief order may be the best way to go, OP.

How much did you borrow if you’re still paying it back after 20 years!

@Lulola

It’s shit! There is so much published about being responsible lenders, obviously if you are still paying it 20 years later it was irresponsible.

How much do you pay a month, what was the original debt and how much is left?

Not true. So many people have borrowed then their circumstances change. Doesn't mean it was irresponsible at the time of the credit being taken.

Irresponsible borrowing also happens, you know!

I had massive debts but we got offered 70% settlement deals which was amazing and enabled us to pay off a lot as had some inheritance

@Lulola

It’s shit! There is so much published about being responsible lenders, obviously if you are still paying it 20 years later it was irresponsible.

How much do you pay a month, what was the original debt and how much is left?

What makes you think the lenders were irresponsible?

thanks for all your answers - I shall continue to pay the debts yes, and I will look into debt charities MSE and CAB, thanks again

Why on earth do you think you’re entitled not to pay back a debt just because it’s old? I’ve had my mortgage 15 years. Shall I just stop paying?

*Not true. So many people have borrowed then their circumstances change. Doesn't mean it was irresponsible at the time of the credit being taken.

Irresponsible borrowing also happens, you know!*

I’m sure it does, however OP pointed out they were thrown at her when the kids were young and she was broke. You can’t claim it’s not irresponsible when 20 years later it is still being paid off.

They have to ensure that it can be paid off on time without having to borrow more, OP doesn’t sound like she’s in this position.

I’ve also found myself in a similar position where debt got out of hand, I got a couple of credit cards for emergencies, within the space of a year from opening 2 credit cards with £500 limit on both I had a £6000 credit limit, I was a student with no experience of money and only ever made the minimum payment every month. This was irresponsible as I clearly couldn’t afford it.

Credit cards and loans are not thrown at people @Lulola. You apply for them!

No one forces you to spend money you don't have, whatever the 'limits' are!

Jesus wept.

Those credit cards weren't 'thrown at' you - you signed up for them.

@lucyslocketinherpocket

Credit cards and loans are not thrown at people *@Lulola*. You apply for them!

No one forces you to spend money you don't have, whatever the 'limits' are!

Jesus wept.

A lot of the time people are desperate, many times I had aggressive marketing from credit card companies inviting me to apply.

Then you do and after a bad month for example UC (need i say more) you use it for food. Then your Cooker breaks or something and you can see how it goes

You know you shouldn’t use it but you do.

It’s not always straightforward.

A creditor cannot pursue a debt in court (in England and Wales) from the date that the debt was last "acknowledged"). By paying you have been acknowledging the debt, so they can still take you to court for the next six years after you stopped paying. That will add costs to the debt, so you will owe more. Your credit rating will not only be shot, but you will have a CCJ. And the court may actually not agree that what you think is affordable is what they think - they could increase your payments, because courts have a very different view of what you need than most people think.

I’m sure it does, however OP pointed out they were thrown at her when the kids were young and she was broke. You can’t claim it’s not irresponsible when 20 years later it is still being paid off.

That still doesn't automatically make it irresponsible, though. Many people take years to pay off their debts because they choose to pay the minimum payments and nothing else.

At some point, people need to take responsibility for their actions.

I had a chaotic few years with lots of house moves back when I was young. A letter for an old debt incurred at that time came through years later to my current address. I read up and it seemed that if I acknowledged the debt they could chase me to pay but if I ignored then they couldn't as it was over six years since I had last acknowledged it. I ignored it and got letters from random companies that had purchased the debt now and then for a couple years but then they stopped.

If you have been paying up til now then you can't escape the legal processes they might take to reclaim the money. You could however negotiate payment amounts and interest.

@Moondust001 is correct. It doesn’t matter if they wrote to you or if you knew about the debt, it matters if you’ve legally acknowledged it in the past six years (five for Scotland). You have, by paying it, so your six years would start when you last made a payment, and they’d be able to take you to court and get a CCJ if they wanted to in that time.

Is it worth negotiating the amount that you can afford to pay? I’d second the MSE/CAB advice.

Go and get some proper advice on debt from someone knowledgeable. Citizen's Advice is a brilliant option. Aso Step Change. There is lots of free help.

You'll keep getting judged here by people who haven't walked in your shoes, but you're much better off getting advice that's tailored to your whole situation rather than just the bits you can disclose in an online forum.

Debts are wiped 6 years after they’re finished being paid - not 6 years from incurring them. What sort of ridiculous system would that be??

I am loving the idea!
Solve all the problems around mortgages

You'll have a worse credit rating if you default.

Credit cards and loans are not thrown at people @Lulola. You apply for them!

You do apply for them but they know who to target. They spot desperation! I got in such a mess with mine and then all of a sudden Wonga was contacting me offering to solve all of my problems, I knew it was a bad move but I was terrified so I took it. A couple of months down the line I was in the same position, conveniently then a different another company contacted me with a high interest loan to pay it all off but I would have to pay double back. By this point I was so scared I just took it, every couple of months they would try and convince me to take more with clever marketing. If I hadn’t spoke to a friend who helped me figure it all out I probably would have extended it, they would send marketing around Christmas pointing out the disappointed faces from cheap gifts etc and how extending my loan would be a good thing - knowing full well I had missed a payment the month before.

I once fell behind and they did a financial analysis and then they said I couldn’t make a payment because my outgoings were more than my incomings. The same day they increased my spending limit without prior contact. So yes I did apply, but the companies allowed me to continue when it was very obvious I was spiralling.

Definitely get some advice. You could have had the whole lot sorted by now if you’d got an IVA (or whatever it is now) back at the start or had declared bankruptcy. I went bankrupt in my 20s - had a lot of debt from university (graduate loan to cover overdraft etc) and then developed severe health issues and couldn’t work much and couldn’t keep up the repayments. Now almost 40 and financially stable, with a mortgage and savings. It was difficult for the first year especially and then I could only get specialist credit with high interest rates to start building my credit rating back up (which is now Excellent). Best thing I ever did. Unfortunately life is unpredictable - the graduate loan I took out was more than manageable when I got it, as a graduate with a well paid job but once my health deteriorated I got into a debt spiral.

Take some professional advice and get this sorted :)

crikey I realise how daft I sound asking if debt was wiped after 6 years - good grief

IVA/bankrupty - I would not know where to start - I shall ask the Google

My credit rating has been a problem for the 20 years anyway so maybe that's the way to go.

I do not even know the extent of the debts though it is probably around the 10 grand mark

I was approached in my local supermarket and offered a card from said supermarket and took it immediately as I was behind on council tax and beside myself with worry - goodness knows how I got it if I was already in debt with others? (both banks btw where I was constantly overdrawn)

I recommend signing up to something like ClearScore if you haven’t already, it shows all of your debts in one place. It’s depressing to look at but really helped me get on top of things because I managed to stick to minimum payments on some debts but then clear others and then move the money across. It’s completely free to sign up for!

thanks Lulola - will do that now