Arrangement To Pay Advice Please

[Mejjo203]

Hi there everyone,

 

I'm on an arrangement to pay with Aqua Credit Card.

I have been reading lots of things last night and its now come to my attention how negative an arrangement to pay actually is.

I have had the arrangement in place since September 2013 and still have a balance of £700 paying £12.52 per month on the arrangement.

 

Am i right in thinking that it might best i intentionally default the account so it registers as a default instead of having the arrangement to pay marker on their every month, As once the account is cleared the Arrangement to pay marks will stay for a further 6 years.

Instead if i default it for example next month it will stay as a default and then i can still make the payments but the default will then come off after 6 years. I'm trying to get the best possible advice on this before these AP markers keep being added on.

 

I would like to think i could have the option to get credit in the future, I've managed to sort a few debts out and things are slowly getting there, but if these AP markers are going to stay on for 6 years once the account is settled then i really am unsure what to do.

 

I hope someone could possibly share / give some advice.

Thank you.

[silverfox1961]

Hi and welcome to CAG

 

In my opinion, it is the opposite. Yes a default falls off after 6 years whereas AP doesn't, AP shows future creditors that you have accepted responsibility for the debt and are paying at a rate you can afford.

 

If you were only paying 'token' payments then a default would have been automatically applied.

 

Do you know if charges and interest have been added since you problems started? If so, get those back and reduce the amount you owe.

 

When working out your income and expenditure, did you take into account everything? You are allowed to have a life and if by adding that to your list, it reduced the amount you pay to a token amount then so be it. (auto default)

[Mejjo203]

Hi and welcome to CAG

 

In my opinion, it is the opposite. Yes a default falls off after 6 years whereas AP doesn't, AP shows future creditors that you have accepted responsibility for the debt and are paying at a rate you can afford.

 

If you were only paying 'token' payments then a default would have been automatically applied.

 

Do you know if charges and interest have been added since you problems started? If so, get those back and reduce the amount you owe.

 

When working out your income and expenditure, did you take into account everything? You are allowed to have a life and if by adding that to your list, it reduced the amount you pay to a token amount then so be it. (auto default)

 

 

Hi

Thank you for your reply.

 

So you think an AP is better than having a default?

I did go through and income and outgoings with them, And they said the minimum was £12.52 at the time, They are taking a small amount of interest each month still. All fees have been frozen though.

 

Its tough to decide because if my financial circumstances improve & i can clear the debt a lot quicker then having a default registered probably isn't the best option. However assuming i'm on the arrangement for a long time with all these AP markers showing, that's when i think would it be better if its a default

[webbscatering]

This Arrangement To Pay is playing havoc with my credit file too, my credit file is pristine apart from this "AP" which appears under a loan we took out some 6 years ago and fell into difficulty a couple of years later (2011). We went to court and offered to pay the loan agreement and additional payment towards the arrears, to date we have not missed a payment which obviously shows on my credit file, I believe the arrears was 3.5k now down to £450 why is this adversely effecting my credit file?

[citizenB]

IMHO, this AP marking is very wrong when it affects records for so long.

 

As already advised, had you been defaulted then after 6 years, even if you were making token payments, the reporting would have ceased. Whilst you are in a Debt management arrangement, then this will hang over you for the length of time you take to pay - which in some cases can be up to 10 years or more

 

I am not quite sure if reporting stops once you have made the final payment - if it does, then I would continue as you are mejjo. Especially if you are hoping to increase payments and clear the debt quicker at some point.

[dx100uk]

best you start a thread of your own

 

 

dx

[obiter dictum]

I cannot see an Arrangement to pay being negative to future creditors

 

As stated it is showing that you have had some temporary financial difficulty and that you are talking to your creditors and facing up to the issues. The norm is to stick head in sand and end up with a default.

 

I had an arrangement to pay in 2012 and it had taken me 12 months to clear the arrears.

 

Vanquish Credit card still increase my credit limit every 6 months. Currently £3500.00

 

Two months ago i got a mobile phone contract with 3 mobile and 3 weeks ago a BT Broadband and phone line with no deposit asked.