Will my debt be wiped after 6 years

[kiana2015]

I am up to my eyeballs in debt, granted it's not hundreds of thousands, maybe 5/6 thousand but my credit score is so bad I can't rent a home unless private, can't get a phone contract, can't even use klarna. Is it true that after 6 years it's wiped so I will have a clean credit score ? Or am I better do do an avi ( think that's what it's called)

Think you mean an iva? Have you acknowledged your debt, may be speak to Stepchange about how to address it.

Well I have attempted to set up direct debits to sort them but they fail as I can't really afford
It to be honest so I've kind of left everything to the point now I'm stressing how to get out of it

So it doesn't get written off - you need to pay it back, get an IVA or go bankrupt.

Paying it off is clearly the best option - and your credit score will improve greatly over time if you're keeping up with the payments.

Getting an IVA or going bankrupt will affect your credit score and future borrowing.

It's not a drastically huge amount of debt - there are many things you can do, a debt repayment loan, transfer the balance into 0% cards - Step Change is a great organisation that can find the best solution for you.

But no, it doesn't go away you have to take action and be in control of it.

If you are in debt and still wanting access to use credit and klarna, you haven't learnt your lesson.

You need to sit down and work out a proper budget and stick to it.

I've been in debt and it sucks (but I also paid mine back).

Martin Lewis’ show was all about debt this week, maybe see if you can watch it on catch up and listen to the advice he gives - it was really good I think.

Yes, I second Martin Lewis. Go to moneysavingexpert - there is tonnes of advice to help if you are in debt and the 'debt free wannabe' forums are great.

Stepchange can negotiate payment plans within your budget and ask for interest to be frozen. However you also need to address your spending habits to avoid running into further issues. If you have already set up dd then it won't be written off.

Definitely contact stepchange. They can absolutely help you - its free & you will feel a huge weight has been lifted once they start helping you. Good luck

Not true. You need to get your current spending under control, cut up credit cards and no more klarna etc. they you need to sit with a debt counsellor and get agreements or be declared bankrupt. They do not magically disappear.

Please please do stage one first, work out your finances, only then can a clean slate help you

The 6 years you are talking about is 6 years after a company defaults you - rather than 6 years after taking out the debt. And 6 years without you acknowledging the debt.

The company has 6 years to chase the debt/take you to court etc. If you acknowledge the debt during the time (which includes making a payment) the clock is reset.

If you are taken to court/get a CCJ that will also make it difficult to rent or get a mortgage.

https://www.citizensadvice.org.uk/debt-and-money/help-with-debt/dealing-with-your-debts/check-if-you-have-to-pay-a-debt/

To pay back 5 or 6 k would a second job be possible?

No you've confused a few different concept. I agree wholeheartedly with advice to speak to an agency like Stepchange who can look at your individual circumstances and offer tailored support.

The 6 years you are referring to relates to:

• defaults (missed payments) show on your credit history for 6 years then start to drop off, so if you last defaulted on a payment 6 years ago then it would be dropping off around now.
• unacknowledged debts - if you have incurred debt and then failed to pay it, the debt company have failed to take action against you and you have made no acknowledgement that you agree you owe that debt, then after 6 years of the debt being incurred they can no longer chase you for it.

IVA is an agreement that you enter in to which consolidates all of your debts potentially reduces or wipes out some of them and defines repayments that have been calculated to meet your affordability, it has consequences on your credit score and ability to enter in to future credit agreements for a period of time, but can be a good solution for some people,

@iamnotalemon
If you are in debt and still wanting access to use credit and klarna, you haven't learnt your lesson.
is that really necessary? maybe just tried to check her credit rating.
Learned her lesson? you have no idea why OP finds herself in this position.

Please contact National Debtline.org stepchange or citizens advice for proper debt advice. There are a number of different solutions depending on your circumstances. Do not pay for debt advice these organisations will help for free. The foundation of all good debt advice is to build a sustainable budget and then pay off the debt with what is left. You can start now by working out exactly where your money goes and looking at maximising your income as well. Whatever solution you adopt you will need to stop borrowing any more money but please get some proper free advice.

Kind of. You can read about it here https://nationaldebtline.org/get-information/guides/statute-barred-debts-ew/

Do you know exactly how much debt you are in and with what companies or bills?

You need to speak to StepChange, it's a free service and they'll advise you the best way to go.

As others have said you need to contact Stepchange or CAB to get the best tailored advice for your specific situation. Nobody seems to have mentioned DRO, you can find out about those on GOV.UK but you still need to get advice because the way you deal with this can affect your future for years.

You absolutely need independent and free debt advice from one of the big debt advice charities- national debtline, stepchange or citizens advice.

How many hours are you working each week?

OP, why can't you pay it back? Have you suffered a significant change of circumstance? No, if you ignore it, it won't just be cancelled out.

If you cut out all discretionary spending, can you pay off more than the minimum interest each month, and still pay your bills and buy food? If you can take a second job in the evenings/weekends, or sell unnecessary stuff to clear as much of it as possible, that is obviously the best way,

Talk to StepChange and see what they advise.

Thankyou everyone I will get in contact with stepchanfe and hopefully sort something out. I'm really worried about the future

Definitely get in contact with stepchange - it will be such a weight off your shoulders. They deal with this day in day out - they will know the best thing for your specific circumstances and will contact your creditors for you

If you're renting, you might be a candidate for a debt relief order but no-one can advise without a full picture of your circumstances.

Moneysavingexpert.com can help you review your budget and signpost you to help

www.moneysavingexpert.com/loans/debt-help-plan/

When a debt becomes "statute barred" it does not mean that it goes away. It still exists in principle and they can still ask you to repay it. But it cannot be enforced in court. It should drop off your credit file after 6 years.

If your debt is 5/6 thousand pounds then you won’t be able to get a IVA, it needs to be a lot more than that!
my friends was over 40k before she got one