Debt advice please

[Ccjadviceneeded]

Hi, I really need some advice please. I have a CCJ that was registered 3 years ago for debt that originally defaulted in 2019. Please no judgement, it was a really difficult situation as I didn't even know about the debt as I fled a very abusive marriage. By the time I found out it was too late to contest it and honestly I was in no fit state mentally to deal with it.

My life has improved a lot since 2019, I moved to the other end of the country and got a good job, met a new partner and last year had a beautiful baby. Unfortunately I'm now facing redundancy, it's a genuine redundancy situation and there's nothing I can do about it.

I've been making monthly payments to the CCJ without fail but have £700 left to pay. I could just about clear this with my redundancy pay but I've only been at the company just under three years so that wouldn't leave me with any kind of cushion until I find a new job. I'm also worried that could take a while as my current job is very flexible with hours, I'm going to struggle with childcare. I've applied to increase my baby's nursery hours but there's a waitlist. It's looking likely she can't get any extra days until December.

In the grand scheme of things, is it really worth using every penny I have to clear this CCJ? Or should I just reduce the payments until I'm back in work (which i will be, ASAP, I've never been unemployed for more than 4 weeks in my life)? I am stuck with the CCJ on my credit file for another three years anyway, will it make much of a difference if it's paid or not?

Thanks for reading.

As far as I know, a CCJ comes off of your record whether paid or not in 6 or 7 years.

Thanks, yeah it will come off after 6 years. So another 3 years to go. Just not sure if it's worth struggling to pay it off in full now, or just reduce the payments until I'm working again then try again to clear it.

Does it incur interest? If not I would lower payments until things get a bit better

I would reduce the ccj payment and keep any redundancy money as a back up. However if you are going to claim benefits would they consider that as income??? 🥺🫤

I would just reduce the payments until you get a new job. If you get the new job and don’t go through all of your redundancy pay just put it all in the CCJ

Let them know your circumstances and ask for a payment holiday or breathing space until you have some income coming in.

Just call the company collecting the payments, tell them your situation and ask for Breathing Space or a token monthly payment until you're back in employment.

It will make no difference to your credit file - a CCJ being fully paid vs balance still outstanding actually makes little difference.

Thanks everyone. They have said I can reduce the payments and I won't incur any extra charges, it's a fixed amount so no interest being added etc. I just thought as I will technically have the £700 when I get made redundant I should pay it? It's the only thing left from a horrible time in my life so I think part of me just wants it gone.

But I could really do with keeping the £700 for emergencies. Hoping I won't need to claim benefits but I will if I can't find something, and as I said I may struggle as my hours were so flexible. But if I do my redundancy payment is low enough that it shouldn't affect it.

Appreciate the advice!

This is exactly what I was trying to find out, thanks so much. If it isn't going to have a huge impact on my credit file either way I think I would be best to just lower the payments temporarily. Thank you