Credit card advice please - I've been stupid

[MyOldPastHasComeBackToHauntMe]

I'm a regular but have name changed for this one. Sorry, this might be a long post but I would really appreciate your advice. I've posted in Chat but thought you might be able to advise too, sorry for cross posting.

At uni ten years ago I was stupid enough to run up £600 of debt on a credit card - and then ignore it. I managed to get away with ignoring it / explaining it away on my mortgage application / not being totally honest with myself and others that this was my debt. Anyway, it kind of went away, I moved several times, it didn't follow me.

And I grew up a bit. So when I then got into a situation with my ExP who left me in a lot of financial crap, I took on the responsibility and it has taken 4 years to sort it all out.

I'm finally on the home straight and was going to be in a position to clear my final card by Easter, having paid off everything else and still managing to have kept my home and (largely) my dignity.

This morning I open a letter from a debt management agency about the £600. It says that the amount is outstanding and is my annual statement.

I have never heard of this company and thought this debt had gone away a long time ago and it would be wiped off my credit record after 7 years. I'm guessing the bank sold it on.

So, what would you do?

Pay it, by a payment plan

Ignore it

Fess up to new DP - although this is my problem, not his, I feel I should be honest

Ring them up and tell them they can swing for it, it's too old and they'll never get it?

Please help, I'm really stressing about this. I thought the days of debt collectors and serious money stress were behind me

I wouldn't ignore it because, as you've discovered, debts don't just 'go away' and you could get collection fees and other nasties added on top if you're unlucky. I would tell your partner... you wouldn't be the first or the last person to run up a CC debt at uni and £600 is a relatively modest amount. Then contact the agency and come to some arrangement. £50/month for 12 months and you'd be genuinely all clear.

Thanks Chil.

As it's been so long, do you think they might accept an offer of say £400? If I rang them and did the 'fine, youve got me, pull the other one' routine?

It has been a long time but it sounds that it's because you moved house and the bills couldn't find you rather than any idea that the debt 'lapsed'. If it was some bank looking for you to say you had £600 in a dormant savings account, you wouldn't be saying no thanks, it's past its sell-by date. I've no idea what a debt collection agency would or wouldn't accept but you'll find out the full story once you contact them. I don't think you'd have to pay the whole thing at once, put it that way.

Thanks Chil, I've spoken to them and I'm going to pay it back at £60 a month.

Is it still only £600? I'd be surprised if it was, if they've been looking/chasing for 10 years then it will have been sold on more than once and had all sorts of charges added to it, related to looking for you/ potential CCJ.

Have you had credit in this past 10 years, becasue this old card would still be linked on your credit file all this time and therefore, the old lender could have found you?

If you have had credit and stuff since meeting your new partner then one that you had forgot about from 10 years ago shouldn't be an issue. Is he likely to go mad?

Plus, be careful about the statute barred stuff becasue once you contact them and 'acknowledge' the debt as yours then the 6 year cycle starts again IYSWIM.

If you do want to pay it off then you could as for a full and final settlement which usually results in a lowered payment amount in exchange for it being cleared off.

The Money Saving Expert Debt Forum has lots of good advice.

Oh. Whoops too late