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

I was in your position OP, my husband and I both made redundant with a baby and were living on credit cards. Nothing extravagant was bought it was literally food, nappies and paying bills with them.

It got to the point where we weren't sleeping with worry so approached stepchange in 2008. They're a charity that set up a payment plan with what you can afford, don't charge a fee and get any interest frozen on your debt.

Over the years we've been offered IVA's, bankruptcy etc and have turned them down every single time. The reason is that regardless of the situation we ended up in we had borrowed that money so why should we take the easy option and not pay it back? I can't believe you are seriously considering just stopping paying 😳. Do you think it's just free money that no-one will miss? Do you have no self respect to shirk responsibility because the outcome isn't suiting you? Your post really hasn't made you come across well and you really aren't setting a great example for your kids.

You borrowed the money so pay it back ,it really is that simple.

I would contact one of the charities eg Stepchange. They should be able to contact the owners of the debt and freeze interest. I'd expect after 20 years if you've not paid a large proportion of your actual original borrowing off, the problem will be the compounded interest added at typically 20-25% per annum

I worked in the debt industry for a while. There are two kinds of debt collection agencies.

#1 Those who legitimately collect debts for clients such as businesses for a % of the total. Arguably they are performing a public service as businesses do not always have the time or resources to pursue debts.

#2 Those who buy and sell debts and are often operating upon the fringes of the law. These slimy parasites buy up old debts for literally pence in the pound and then slap their own charges on top. They then write threatening letters which suggest powers that they do not possess. There is something sleazy and Dickensian about the buying and selling or debts.

The Consumer Protection from Unfair Trading Act 2008 brought in changes which invalidated many of the contracts of old debts such that they cannot be enforced in court if the DCA does not have the original paperwork. Very few of them have because they tend to buy them in bulk with just a list of names and addresses. Therefore even though you have been paying this debt it is worthwhile challenging it.

I suggest OP visit the debt section of the Consumer Action Group Forum where there are people with very considerable expertise who can advise you. The debts may not be able to be "written off" but they may well be in such as position that the contracts cannot be legally enforced.

Remember that these types of DCAs are slimy parasites. You dont "owe" them anything. A friend of mine got about £15000 of debts declared unenforceable by following advice she received on the CAG.

You borrowed the money so pay it back ,it really is that simple.

If OP has been paying for 20 years then it's possible she's already paid back the debt many times over.

If you can afford to pay you should want to pay to clear yourself of debt. Just pay it off. You ran up the debt so your responsibility to pay it off.

@mowglika is correct but you need to look carefully into the procedure with advice from members on CAG.

@LettyLoman

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

Probably not very much. She probably paid the actual debt off years ago and the rest is accumulated interest.

God, the sanctimonious people on this thread.

This debt is almost certainly unenforceable. Take advice from CAB about the best way to stop paying it.

I think CAB and other charities should be able to help with organising an IVA.

Good luck.

Its not really that simple that if they spent it they should pay it back. Obviously we would need to see the paperwork to judge but even it was £50 a month over such a long term OP would have paid £12000 towards the debt. Again only guess work but I'd imagine the debt was a lot smaller than that and monthly amount higher.

I've seen products missold when I was a banking adviser. And I've been sold a store card myself as an 18 year old, £1500 credit limit on a monthly salary of £120. Eye wateringly high APR and I had no idea what the product was and what I was taking on. And look at this new Klarna which is gaining attention for all the wrong reasons.

You need some advice from someone who can look at the paperwork in detail and workout how much you have paid over the years and if it is fair that you have and whether you were missold the product. Thankfully financial services are highly regulated and ombudsman tend to fall in the favour of the customer. There are some great resources already linked. Is the bank you took the cards out from still trading?

I think it fully depends on the amount of the original debt, how much you have paid, how much interest has been added and how much the debt collection agencies are taking the piss. If you have been regularly paying and you have more than paid your debt and interest then I’d weigh up whether it’s worth stopping paying and taking your chances on whether they will take you to couture or not. If your credit rating is already damaged then it might be worth the risk. If debt collection agencies have taken over it’s because they are making money off it.

OP I’m a debt adviser for one of the charities mentioned up thread. I would recommend you contact them for an appointment, they will look at your finances to see if you can maximise your income and then talk you through all the available debt options. Do not just stop paying as you could end up being taken to court. Good luck!

Credit was being thrown at people 20 yrs ago, it was madness - and lenders would target existing customers with debt because they knew they would make money from them. Yes you have to sign up but it was irresponsible of them to offer the amount of credit they did - hence they were curtailed by new laws. I did a debt related job about 15 yrs ago and it wasn’t uncommon to see people with tiny incomes with 2 £25k loans and 7 credit cards.

Anyway - memberofthewedding gave you good advice. Also you should visit money saving expert forums for advice re getting a copy of the original agreements.

Ignore any advice about pursuing bankruptcy or IVA a- totally inappropriate for your situation (and I have expertise in that area!). They are nuclear options with long reaching consequences and only should be used if you’re absolute dire straits - they’ve been made out here to be easy quick options. There will be much better ways to sort out your very old debts.

@slashlover

You borrowed the money so pay it back ,it really is that simple.

If OP has been paying for 20 years then it's possible she's already paid back the debt many times over.

^^ This. OP, you need proper advice based on your full circumstances (income, assets, type of debt, original amount borrowed, how much remains, what you've paid back).

Without the above no-one can advise, but what you don't want to do is nothing, because in that case, the debt could last forever.

Google Christians against Poverty. They are a fantastic debt charity (no judgement, no charge, just good honest caring advice).

While posters may mean well, most of this advice is incorrect- please use a reputable charity (cab or similar) or use a self help website such as national debt line to get advice on these debts.

Credit rating is complex and while things only stay on there for 6 years (picture a ladder...things fall off the bottom after 6 years) - each new debt collection agency is probably recording on your credit report therefore credit rating has not improved.

I was in major trouble with my credit card, which had £150 of interest per month on top of the balance. Each month the debt became bigger and then I lost my job.
I spoke to StepChange, a free debt advice charity, who sent me an income and expenditure sheet which I filled out and sent to them. They told me the only option I really had was to go bankrupt, which was absolute nonsense. So I rang up Barclaycard directly and declared that I was unable to pay the full amount each month, and asked them to come to some arrangement with me as of course I realise I have to pay the money somehow. They were brilliant. They froze the interest, and I pay a set monthly amount by standing order, with no interest which was the absolute killer.
Now the debt is manageable and will be paid off in two years, thank God. Obviously I can't use the card anymore, not that I would want to ever again.

@Hopdathelf

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?

Mortgages work differently

Take all legal ways to reduce your payments. If your loan is with a loan shark then do all that other have advised to move it.

However, all the people blythely calling others 'sanctimonius' - remember there are employees who have gone unpaid, been laid off, been sacked, because of other people's debt. When companies do not get paid, it's not the rich who suffer. It's the poor. It sucks all over.

No you owe it you pay it. If you stop they will add interest and charges then a cc will be added to your credit rating. Contact stepchange they will talk through your options

If you hadn't bothered paying them off at all they would have become unenforceable 14 years ago...

Your best way forward maybe a Debit relief order. Go to CAB they will be able to talk to you about it.

@Cailleachian

God, the sanctimonious people on this thread.

This debt is almost certainly unenforceable. Take advice from CAB about the best way to stop paying it.

It absolutely is. What a ludicrous comment,

Op you need help. Call one of that charities mentioned. You need to know how much you owe, what interests you’re paying and if you can consolidate, I’m shocked you could be so ill informed you’d think as it was more than six years you didn’t have to pay it any more,

Not paying will result in them coming after you for the debt. And that could result in you owing all the expenses of them doing so,inc legal costs, bailiffs etc, it’s written off six years after the last payment but they would use that time to come after you hard.

You need to get some proper advice and not listen to posters like the one I quoted saying it’s unenforceable. These people could get you into a very bad situation.

Pay your debt. I don’t want to pay it for you. Why would you even ask that??? Would you only pay a bit of your car or rent then stop cos you thought you’d paid enough? Are you actually serious??

Call them up and say you can only afford to pay £1 a month. DH did this for an old debt and, whilst he can now afford more, we’ve just ignored letters when they ask to discuss if we can pay more. The account is in credit and we’re paying the agreed amount, what can they do? We had it for another debt on £1 a month but eventually agreed to go to £10 a month as the debt was larger. Just be insistent that you can’t afford more and once the token amount is sorted, pay it every month and forget about it.