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Long story about debt - need advice - old debt from 20 years ago Help!

12 replies

Livingthedreamnot · 15/05/2021 12:07

19 years ago I took out a loan of £30,000, how I ever was allowed to borrow this amount of money because I was only earning £20/21k (from memory) I don't know. Anyway I was paying it back - £500 a month for a couple of years. Then I got made redundant - struggled a bit didn't make repayments but then I went self employed and started doing quite well, for another two years I was probably paying £800 a month off these debts. Then - the crunch point - I got pregnant had my first child in early 2009 - and when I went back to work there was no work. My industry had been decimated by the credit crunch/ financial crisis. I've never quite got back on track. Through the Step Change charity I was advised to pay a minimum amount, it ended up being a £1 (I was convinced I would get my business back on the road again), I paid £1 a month until 2017. Now in the meantime I met my DH got married and his family gave us a lump sum to help buy a house. DH earns good money - but not enough for me to ask him to pay off this debt. In the last few weeks I've finally got my business back on track. Funnily enough I've had a letter from the agency that bought the loan. They are saying they are going to take me to court. This is worrying me because - yes I can afford to make repayments but the debt is not on my credit record. I don't pay anything towards our mortgage - my husband does but I'm a joint owner of our house. If I start paying it back will it appear again on my credit record. I'm so worried about this. Basically I worked out I paid about £25,000 of the £30,000 and the £20,000 they are now saying I owe is probably mostly interest - although they did stop interest on it.

OP posts:
midnightstar66 · 15/05/2021 12:18

When did you last make a payment or have correspondence with them?

MadeForThis · 15/05/2021 12:38

I think the debt is statute barred after 6 years of no payments or no communication.

Livingthedreamnot · 15/05/2021 12:42

I was paying £1 towards it from 2010 till 2017, on the advice of Step Change so not statue barred. Because I'm going to have to take out a loan for my business (not a secured loan) I was thinking of offering the agency a settlement amount. I think that might be my only option. I can see that I could probably eventually all of this back but it would take years.

OP posts:
Livingthedreamnot · 15/05/2021 12:43

I' guessing even a £1 keeps it open?

OP posts:
titchy · 15/05/2021 12:47

Yes even a £1 keeps it open. How much could you give them now as a lump sum? If you have say £5k you could offer that in full and final settlement. Might be enough. They'd rather have something than £1 a month...

Livingthedreamnot · 15/05/2021 12:49

I was going to offer around that - but I need to sort out the loan first. I've been given pre approval.. but hmmm - I'm going to ring the agency on Monday. Work out how much I can afford.

OP posts:
midnightstar66 · 15/05/2021 13:03

Was it just a standard generic letter? I'd leave it a bit. They will probably sell it on a couple more times and someone will offer you a huge reduction- or it will go statute barred during the process.

MadeForThis · 15/05/2021 22:29

It's can't go statute barred if they are communicating with you.

If the debt is still £20k then offering a final settlement is a good idea. Go low. £2/3k for the first offer.

They'll get a lot more that way than £1 per month.

Doorhandleghost · 16/05/2021 13:47

Have you requested a copy of the original agreement from them? If they can’t provide it it’s unenforceable (you still owe it but they can’t pursue you). It’s called a CCA request - if you visit the money saving expert forums there’s lots of help there. Strongly suggest you go these for advice before deciding on a solution.

DixiePeach · 16/05/2021 13:52

Hi I had something similar happen. Have you called the company who bought the loan? I spoke to the company concerned and it was written off and I shouldn’t have been sent the letter. Hopefully it’ll be the same for you.

Livingthedreamnot · 18/05/2021 12:09

I don't think it can be written off. What concerns me is that it's a old loan but that they can still go to court and get a CCJ - does that mean that something I took out (when I much younger and to be honest in that great a mental health space) will somehow be secured on my home?

OP posts:
Lightsabre · 06/06/2021 11:03

There is a Debt Free talk forum on Money Saving Expert website. There are lots of advisers on there who will take you through what to do. Requesting a final settlement seems like the way forward.

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