General Advice on Current Situation

[BPJD]

Hi all, not posted here for years!

 

So I've been working away an being young have neglected my credit as I've always been disinterested.

 

Now I'm home and settling down I have decided to pull my Experian Credit Report.

 

It is DIRE!

 

My score is 141 which translates as VERY Poor!

 

I have a total current debt of £4315.00

 

Individually

 

 

• American Express: 2475.00
  
• EE trading as T-Mobille: 1074.00
  
• Royal Bank of Scotland: 500.00
  
• Wonga: 266.00
  

The RBS is being paid at £50 a month at the moment. But

 

I'm currently tracking down details to contact the other companies or the agencies handling the debts.

 

I want these clearing ASAP so I can get my credit back on track.

 

I thought a good way of doing this would be with a debt consolidation loan.

 

Tesco have refused me already however a company called Aspire has 'Accepted Me'

I am to wait for a phone call.

 

What are the odds of this coming through? And how would you suggest I manage these debts to get my report better?

 

I am working at the moment, I just jumped into a shift job with a family member, Making anything between £800 - £1500 a month depending on shifts.

 

Any help would be appreciated greatly!

 

I am supporting my Girlfriend and could do with a credit boost here and there,

so far the only people who have given me a chance are Vanquis and I am managing the card very well.

[dx100uk]

wont matter if you pay the debts off

it wont improve your score at all.

 

if the debts a re defaulted

then the defaults will kill you for 6yrs from birth

then the whole debt will disappear...

 

doesn't mean its not still owed mind.

 

dx

[BPJD]

Thanks for the reply...

 

So is there a benefit to me paying these debts off. Or will I just be in the same place in 6 years either way?

[Bazooka Boo]

Like DX says, if you have defaults marked on your credit file, then they stay there for 6 years regardless of whether you pay them off or not.

 

Obtaining further debt in an attempt to get yourself out of debt, is not the answer IMO especially these clowns!

Representative 58.5% APR (variable)

Borrow £5000 and pay £297.34 a month for 36 months. The Total Interest Payable is £5,704.24. The Total Amount Payable is £10,704.24.

 

https://www.aspiremoney.co.uk/

 

When did you take out the CC with Amex?

 

What is the RBS debt? Loan O/D current account?

 

Have you reclaimed any fees/charges/PPI on any of these accounts?

[Cazz2269]

Not sure if this is any help but

I was in a similar position about 6 years ago and was advised to go for a Debt Management Plan

(I found them through the Citizens Advise Bureau website).

 

I went through a company that contacted all my debtors (for a fee) and agreed to pay a set amount each month to clear the debt

- this stopped any additional interest being added to the amount and also stopped the letters from Debt Collectors pouring through my letterbox.

 

Although at the time this worked for me, in hindsight I wouldn't have taken this route

as one Mortgage company refused me a mortgage based on the fact that I had entered into a debt repayment plan

- and would only consider my application once I had left the plan for 12 months or more

- although this is not the case for everyone.

 

Although the defaults stay on your account, by making regular payments (regardless of how big or small)

it will go in your favour that you are seen to be clearing the amount.

 

It will also show on your credit report once the amount has been settled or satisfied -

even though the default remains on your account for 6 years so creditors can see that you have in fact paid the money owed on the defaults.

 

Some companies may be willing to negotiate and reduce the amount that is due if you agree to pay a lump sum.

(I was paying an agree amount to my debtors for a couple of years and once I was in a better financial position,

I negotiated to pay a reduce amount to clear the debt).

 

As already advised, defaults stay registered against your name for 6 years, regardless if you clear the amount in full.

 

Your best bet is to contact all the companies asap and come to an agreement to start clearing the debt

- this will also freeze the amount so no additional charges or interest will be added.

 

Hope this helps.

[dx100uk]

we do not recommend using any fee paying DMC's.

 

you can do it all yourself for FREE

or

contact NDL, they will sort things a refer you to one of the FREE charities if necessary.

 

the bottom line is until the debt default reach 6yrs and the accounts vanish

the default will kill any major applications for credit like a mortgage

 

making small payments now, will make some difference, but ofcourse will also vanish when the above happens.

 

ok the debts will be smaller and p'haps easier to manage

but ploughing a lot of money

esp if this attracts extra interest, is rather a silly way to clear a debt.

[Cazz2269]

I totally agree with dx100uk - that you can do a DCM by yourself. For personal reasons, I found the whole situation very stressful so it was helpful to have someone take the load and do it for me. But if you are unable to do by yourself then definiately go for a FREE charity.

[BPJD]

So is it worth my while paying off the defaults.

 

 

I worked out I can clear them all in 3 years affordably contributing equally to each.

 

 

It is that or just let them fall off my file.

 

 

Either way am I correct in understanding my credit will not change for 6 years from the defaults?

[dx100uk]

it will make no diff to your credit worthiness no

 

 

dx