At the beginning of last year,

after my wife lost some disabilty benefits,

we ended up getting into debt,

mostly small but included a credit card just over £3k.

My wife has since managed to get back on top with all but two, and I will shortly be in a position to clear most of mine, apart from the credit card.

If I was to clear some of these debts by offering a settlement of (say) 50% and (say) offer a grand as settlement of the credit card would this be a detriment on my credit rating?

We will be moving to private rented accommodation in September and want our credit rating to be as healthy as possible.

Yes it would be detrimental, if part settlement was accepted. Means you get into debt, which you then seek to not repay in full. Frightens future creditors.

Quite honestly, you are best to always contact creditors and ask for their help. They do have some responsibility to assist their customers manage their accounts. Perhaps if gave them full details of income/expenses, they might freeze interest/charges for a period to allow you a chance to get back on top of repayments due.

You don't give any info about debts and whether your course of action that you are following is best way. If you want people to comment on that, provide more details. Or phone Stepchange or other free confidential helplines who will ask you about the debts and you can discuss it.

what are the defaulted dates on these debts?

that's the killer..

doesn't matter if you pay them off

the default remains for 6rs.

don't waste your money

go have a holiday with it..

dx

Never cosider any form of F&F if the debt is owned by a DCA. Doyour homework and check if its actually enforceable first, or its a total waste of money.

Yes it would be detrimental, if part settlement was accepted. Means you get into debt, which you then seek to not repay in full. Frightens future creditors.

 

Quite honestly, you are best to always contact creditors and ask for their help. They do have some responsibility to assist their customers manage their accounts. Perhaps if gave them full details of income/expenses, they might freeze interest/charges for a period to allow you a chance to get back on top of repayments due.

 

You don't give any info about debts and whether your course of action that you are following is best way. If you want people to comment on that, provide more details. Or phone Stepchange or other free confidential helplines who will ask you about the debts and you can discuss it.

I made arrangements with the £3k credit card to clear £15 a month and another credit card around £600 at £2 a month.

There are about 5 other debts (largest £350) that I didn't make arrangements for but are showing on my credit file.

I am not paying any interest at the moment.

All my wife's debts are now being repaid at the normal interest rates bar two,

which are on temporary no interest minimum arrangements.

One of those ends this month so we'll go back to paying normal interest on that one.

We can afford those repayments now where we couldn't before, It's takens us about 18 months to get back into this position.

Are you paying the Original creditor direct, or is another company going as an inbetween?

Thanks dx100k.

The defaults are all around June to August last year.

I was under the impression that having a debt showing satisfied (if paid off completely) or whatever they call it if you make a reduced offer of settlement that they agree to, would look more favourable than simply showing a debt in default.

The biggest credit card debt is now with Lowell and the other one is with Frederiksons (Defaults Aug and June last year) On credit file they're showing as Lowell and Cap One.

All I'm looking at is making my credit file look better when we move, but I accept that the history is there for 6 years.

STOP PAYING. The debts are with two of the biggest fleecers out there. CCA them now and do not pay a single penny until you recieve a compliant response. Stop considering paying them ANYTHING.

Are you paying the Original creditor direct, or is another company going as an inbetween?

Lowell for the biggest credit card (3k) so I assume the Aqua have sold the debt. Fredicksons is likely a DCA so my approach (should I make one) would be to Cap One

On my wifes' Creation, which will revert to standard terms next month, was paying them £8 a month, and dealt with them direct all the way through. Argos being dealt with by Moorcroft, and we're paying a minimal amount with no interest at the moment.

Fredrickson is Lowells own DCA next table

moorcroft do not own debt they are only collectors for owners,on commissions most of what you pay, ignore them I do the last 4 years they go away

cash cowed...

nope paying it or paid it

wont help your score at all.

once defaulted

that kills you for 6yrs till the whole account then drops off your file.

so freds are chasing on behalf of their client who is cap1?

the other debt has been sold to lowells?

dx

Perhaps it might help,

if more details were advised on each debt.

Original creditor name,

type of account, date taken out,

date of last payment,

who owns the debt now,

basis of any payment arrangement.

If the OP is moving and wants to avoid a CCJ at any point,

perhaps more info needed,

before they stopped making repayments.

cash cowed...

 

so freds are chasing on behalf of their client who is cap1?

 

the other debt has been sold to lowells?

 

 

dx

As far as I know, yes, although I haven't received a deed of assignment (not that it makes any difference)

I understand (and accept) that paying any of this debt off will still damage my credit rating until 6 years has passed. Is it fair to say though that if I show the letting agent that I have satisfied most of the debt they will look more favourably on letting me a property, because that is the crux of the matter.

A quick question where I'm paying reduced payments does the debt come off my credit rating 6 years after default or still show because I am making repayments?

In answer to Uncle Bulgaria

Moneyway (Car Loan) £1043 £85 a month never in arrears

Aqua (with Lowell) £3100 £15 a month defaulted

Cap One (with Frederickson) £585 £2 a month defaulted

Pounds to Pocket £343 no arrangement defaulted

Ratesetter £159 No arrangement says up to date even though no payments for at least a year

Secure Trust Bank £211 up to date but fell behind with payments for 3 months last year which they transferred to the end of the debt.

EE Ltd £19 no arrangement Default (stupid on my part head was a shed last year should have just cleared it off)

Cashplus £127 overdrawn shows late payment.

(All defaults were between June and August last year.)

Wifes

Argos £1500 (with Moorcroft) £5 a month

Creation £1200 (Direct) £8 a month but switching back to interest next month

Littlewoods £1100 never in arrears

Very £1200 never in arrears

Ace £250 fell behind last year and restored interest when we were in a position to make normal monthly payments.

Moneyway (Car Loan) £1043 £85 a month never in arrears have you still the car?

Aqua (with Lowell) £3100 £15 a month defaulted - send a CCA request

Cap One (with Frederickson) £585 £2 a month defaulted - send a CCA request

Pounds to Pocket £343 no arrangement defaulted start a thread in the PDL forum

Ratesetter £159 No arrangement says up to date even though no payments for at least a year - start a thread in the PDL forum

Secure Trust Bank £211 up to date but fell behind with payments for 3 months last year which they transferred to the end of the debt. - whats this a secured Loan?

EE Ltd £19 no arrangement Default (stupid on my part head was a shed last year should have just cleared it off) ignore

Cashplus £127 overdrawn shows late payment. start a thread in the PDL forum

(All defaults were between June and August last year.)

Wifes

Argos £1500 (with Moorcroft) £5 a month send a CCA request

Creation £1200 (Direct) £8 a month but switching back to interest next month send a CCA request

Littlewoods £1100 never in arrears send a CCA request

Very £1200 never in arrears send a CCA request

Ace £250 fell behind last year and restored interest when we were in a position to make normal monthly payments whats this ace cards?

IMHO save your money for a deposit

Yes, I still have the car.

Secure Trust was a fridge freezer from AO

Ratesetter was a mobile phone from giff gaff.

I'm confused as to why I need a CCA request,

especially for those that have never fallen into arrears or have reverted back to interest terms.

well ultimately you don't want to attract any more defaults

so the ones that are happy

undefaulted

and still with the original creditors p'haps not

but the others i cant see why not

ok you cant CCA bank accounts nor mobile debts

but most certainly any that are with or have been sold to DCA's CCA

paying or not

paid or not

the defaults are there for 6yrs

then that account will drop off your credit file

and cant return

no matter what you do or don't.

so be careful on wasting money, me thinks you might have already

it wont improve your score or worthiness whatsoever if its defaulted

Thanks DX, no I haven't parted with any money.

well careful decisions ahead.

ive lost count of the number of people that I've seen blindly pay debts off and find their money has in all effect been a total waste.

they might as well have burnt it for all it did to improve their credit worthiness and their financial well being given time.

don't get me wrong

we're not against doing so.....

but neither do we advocate debt avoidance [though not in your case ofcourse]

but its a minefield

and sometimes its better to scratch every box of the scratchcard before you decide your a winner by doing F&F's.

getting every scrap of info is the best way

then make an informed decision upon each debt.