I have recently moved to China to study and ultimately teach English. I have no income and have large unsecured debt in the UK. I have been paying reduced affordable payments to all of my creditors for 3 years (all interest on accounts has stopped and in many cases I believe the debts have been sold). My debts are as follows :
Original Debtor Collection Company Value of Debt Account opened Default Date
Egg Credit card CapQuest £3.2k May 03 Nov 06
HFC CapQuest £960 Aug 05 Feb 07
Egg Loan CapQuest £11.5k Mar 06 Dec 06
Virgin credit card Marlin/Arrow £3.5k Nov 02 Aug 07
Capital One None £732 Feb 04 Sep 08
Cahoot Loan Santander £4.2k Jun 03 Jun 07
Alliance Leicester Santander £6k Nov 03 Feb 07
IF IF Halifax £3.5k Oct 05 Mar 08
I also had 2 other debts which I settled last year at 60% and 50% however they also originally defaulted. I have the letter confirmation that both were payment for full and final settlement but I am a little worried about how it is reflected on my credit files (Experian and Equifax). Status on both is still "Default" with the balance still showing, minus the amount I paid. The history stops at the date I paid the settlement. Is this correct?
Anyway back to the main reason for the thread. Now that I have little to no income and now living in China, how should I approach my outstanding debts (total £35k). My father has offered to lend me money to try and achieve a pro rata type settlement agreement with all my creditors.
What would be reasonable considering my circumstances? Any suggestions on how to approach this would be greatly appreciated.
All of the debts are unsecured and I have no assets in the UK.
I am still very embarrassed by allowing my finances to get so out of control, however I have been in control since 2007, once I had negotiated payment plans for all my debts.
I have read a number of threads on this site, following successful stories where people have proven agreements are unenforceable, reclaimed interest and significantly reduced the amount they need to pay. I do however feel I have a morale obligation to pay....
Any help or advise would be greatly appreciated.