lowell solicitors - advise please..
p.kane1981
Posts: 77 Forumite
Good Morning,
I've made some mistakes and a debt I had has been taken to court via Lowell solicitors, the debt is £1500 and the court has agreed to a £50 a month payment..
when I called Lowell this morning the guy on the phone advised if I paid the debt in full it would be wiped off my credit file and be better for my search history in the future and I would just be left with the original default from back in 2013. Is this correct ?
I have a option to pay the debt off with a credit card I have with a APR of 5.9%. I really want to do what's best for my credit file.
I understand putting the debt on a credit card is not the best but I would be paying around £70/£100 per month off it to get the debt paid and gone..
Any advise would be brilliant.. thank you in advance..
I've made some mistakes and a debt I had has been taken to court via Lowell solicitors, the debt is £1500 and the court has agreed to a £50 a month payment..
when I called Lowell this morning the guy on the phone advised if I paid the debt in full it would be wiped off my credit file and be better for my search history in the future and I would just be left with the original default from back in 2013. Is this correct ?
I have a option to pay the debt off with a credit card I have with a APR of 5.9%. I really want to do what's best for my credit file.
I understand putting the debt on a credit card is not the best but I would be paying around £70/£100 per month off it to get the debt paid and gone..
Any advise would be brilliant.. thank you in advance..
0
Comments
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Hi,
The CCJ will be removed from your credit file if it is paid in full within 28 days of judgement.
Your credit file will certainly be more healthy without the CCJ.
The credit card payment would be more than the court judgement, but as long as its affordable, then in the end its up to you how you proceed.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Hi p.kane1981,
Sourcrates is right that if a CCJ is paid in full within 1 month of the judgement date, it would be removed from your credit file and this would, in general, be better for your overall credit history. Unfortunately, it is not 100% clear if the 1 month deadline is 28 days or 1 calendar month. If you act within 28 days you would be on the safe side of things.
Using credit to pay credit can be an issue. It will mean you repay more overall because the CCJ will include interest and charges from the original debt, and if you use a credit card to pay that off you will pay interest on top of interest. If you have other debts that are outstanding and could escalate to court action then this may not improve your credit rating as much as you hope.
A key issue here is affordability. If you can afford to clear the CCJ, then that is less of a concern. But if you have been ordered to pay £50 per month through a judgement, that implies that is the money you can spare. And if the minimum payments on the card would be £70 - £100, then something doesn't seem to be adding up here. Do a full SOA to check what you can afford first. Good luck,
Laura
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0
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