I’m so depressed. Please help me understand my credit file

[Muffins34]

Please no judgement as I’m struggling a lot with my mental health.

In November 2018, I defaulted on 2 cards. Both eventually passed on to debt collection agencies. I ignored all correspondence from collectors for the first one until October 2020, when I offered a settlement which they accepted. It was then marked as “Partially Satisfied” (PS) you can see from my credit file below.

The second one, I’ve ignored to this day, and is showing on my credit file as a D for each month for until the month of May of this year. However I will pay a settlement fee next week, as I did with the first one. It has been arranged with the collection agency.

I’m very confused, as I’m told that the Default, whether paid or not, will “fall off” after 6 years of the date of the original default. In my case, November 2018.

However as I’ve buried my head in the sand like an idiot, and ignored the agencies, wouldn’t it still show that I’ve had Ds marked against my file for up until Oct 2020 for the first one, and June 2024 for the second? In which case, wouldn’t these still show as defaults for up to 6 years of the months marked as Ds on my credit report? See my report for the 1st credit card which was settled back in Oct 2020 below.

Thank you.

as I’ve buried my head in the sand like an idiot, and ignored the agencies, wouldn’t it still show that I’ve had Ds marked against my file for up until Oct 2020 for the first one, and June 2024 for the second?

No.

The entire account will disappear from your credit files six years after the initial Default date.

It doesn't matter how long you took to arrange a settlement or whether the debt is paid or not. If the Default dates were November 2018 then when you check your credit file in December 2024 all trace of the accounts (all payment history, everything) will have just vanished.

Just round the corner op, it's a very positive thing to look forward to x

Thank you, so me waiting 5 years to pay off this second one only next week won’t make a difference, as the non payment activity from 2018 to now, won’t exist in theory next year? x

I wouldn’t contact them or pay anything if I only had 6 months to wait til it completely dropped off my file, not sure what’s to gain by paying at this point.

Yes I understand your point, part of me agrees and initially I thought the same. The other part of me worries about the collections agency putting me on a fast track to a court judgement now I’m approaching the 6 year mark which they won’t be able to pursue past this point.
A CCJ would ruin my future financially.

But then you could settle if there were any indication of this happening, you’d be notified and you bc old pay before it goes to court.

But then you could settle if there were any indication of this happening, you’d be notified and you bc old pay before it goes to court

Once it gets to the point of a CCJ pathway being followed the op would have found it much more difficult to come to a settlement offer. A CCJ gives them the oomph to pursue more vigorously. Plus it would have remained a worry that action might be pursued in future. The op had been wise in arranging a settlement whilst the debt is 'only' defaulted as this will ensure there's no risk of future CCJ action and she can therefore forget about it entirely once she's paid the agreed settlement.

so me waiting 5 years to pay off this second one only next week won’t make a difference, as the non payment activity from 2018 to now, won’t exist in theory next year?

@Muffins34 yes that's exactly right, no difference at all. The whole account, every single trace of it will disappear from your credit file at the end of this year. It does wonders for your credit rating, instantly ime.