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    • kirstyw1988
    • By kirstyw1988 15th Sep 17, 2:21 PM
    • 5Posts
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    kirstyw1988
    Debt Relief & Credit Rating
    • #1
    • 15th Sep 17, 2:21 PM
    Debt Relief & Credit Rating 15th Sep 17 at 2:21 PM
    I have been in touch with the National Debt Relief who have proposed a monthly plan for me which means I will be debt free in 4.5 years. I am very happy with the re-payments and the amount of time it will take, but the only thing worrying me before I accept is how it will affect my credit rating.

    Does anybody have any experience of this and know the extent of the credit rating damage? We would probably want to build an extension on our house in about 2-3 years and would need to borrow more money on our mortgage for that, but my concern is that I won't be able to if my credit has been affected?

    Ideally I would have just wanted to get a secure loan and pay the credit cards off, but my applications have been declined because of the amount I need to borrow in order to do that.

    Thanks in advance.
Page 1
    • zx81
    • By zx81 15th Sep 17, 2:24 PM
    • 13,144 Posts
    • 13,442 Thanks
    zx81
    • #2
    • 15th Sep 17, 2:24 PM
    • #2
    • 15th Sep 17, 2:24 PM
    You don't have a credit rating - just credit files that lenders view and make decisions on.

    What is the current state of you file? What do you owe, have you defaulted, any missed payments and so on?

    Essentially, any defaults, arrangements to pay, DMPs etc will be viewed negatively by any mainstream lender.
    • kirstyw1988
    • By kirstyw1988 15th Sep 17, 2:30 PM
    • 5 Posts
    • 0 Thanks
    kirstyw1988
    • #3
    • 15th Sep 17, 2:30 PM
    • #3
    • 15th Sep 17, 2:30 PM
    Thanks. My current rating on clearscore is like 350 which is about average. The debts I have are 2 credit cards and a Very account. I don't miss payments but am just struggling with the cost as the interest is going up and I only pay the minimum each month so feel like I'm never getting anywhere!
    • zx81
    • By zx81 15th Sep 17, 2:34 PM
    • 13,144 Posts
    • 13,442 Thanks
    zx81
    • #4
    • 15th Sep 17, 2:34 PM
    • #4
    • 15th Sep 17, 2:34 PM
    . My current rating on clearscore is like 350 which is about average.
    Originally posted by kirstyw1988
    As I mentioned, you don't have a rating. Clearscore don't lend money or make decisions for lenders.

    If you are maintaining payments, I'd strongly encourage you to keep doing so.

    Visit the DFW boards for advice on how to cut costs and throw more at your debts. Make sure you target the highest rate debt.
    • kirstyw1988
    • By kirstyw1988 15th Sep 17, 2:38 PM
    • 5 Posts
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    kirstyw1988
    • #5
    • 15th Sep 17, 2:38 PM
    • #5
    • 15th Sep 17, 2:38 PM
    Although I am manging payments, it is really killing me to do so and means I have been in my overdraft the past few months, plus if I carry on as I am just making the minimum payments it is never going to clear as interest just gets added and so you end up not really having paid any offf (if that makes sense!).

    Thanks.
    • zx81
    • By zx81 15th Sep 17, 2:42 PM
    • 13,144 Posts
    • 13,442 Thanks
    zx81
    • #6
    • 15th Sep 17, 2:42 PM
    • #6
    • 15th Sep 17, 2:42 PM
    If you do choose to default on them, forget about any further borrowing for a few years.
    • kirstyw1988
    • By kirstyw1988 15th Sep 17, 2:46 PM
    • 5 Posts
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    kirstyw1988
    • #7
    • 15th Sep 17, 2:46 PM
    • #7
    • 15th Sep 17, 2:46 PM
    Thanks. That's basically what I am trying to find out - whether it will be impossible to get the extra money to extend our house etc and for how long it wouold be impossible for.
    • zx81
    • By zx81 15th Sep 17, 2:50 PM
    • 13,144 Posts
    • 13,442 Thanks
    zx81
    • #8
    • 15th Sep 17, 2:50 PM
    • #8
    • 15th Sep 17, 2:50 PM
    There's no single answer. Each lender will view you differently - but it will be on a sliding scale from 'no lending', to 'maybe but at a high rate', to 'may lend at a decent rate'.

    If you're going to go to a full blown DMP, I'd suggest you won't get anything decent until it's fallen off your files in 6 years.
    • kirstyw1988
    • By kirstyw1988 15th Sep 17, 2:56 PM
    • 5 Posts
    • 0 Thanks
    kirstyw1988
    • #9
    • 15th Sep 17, 2:56 PM
    • #9
    • 15th Sep 17, 2:56 PM
    Thanks. Definately helping me to make my decision!
    • sourcrates
    • By sourcrates 15th Sep 17, 3:13 PM
    • 11,885 Posts
    • 11,392 Thanks
    sourcrates
    I have been in touch with the National Debt Relief who have proposed a monthly plan for me which means I will be debt free in 4.5 years. I am very happy with the re-payments and the amount of time it will take,
    Originally posted by kirstyw1988
    Hi,

    Just one moment here.......

    Who are National Debt Relief ?

    Are they charging you a fee for this service ?

    If so STOP !!!

    There are free to use debt charities such as Stepchange, who will arrange a DMP for free with no fee`s whatsoever :

    https://www.stepchange.org/Howwecanhelpyou/dmpdebtmanagementplan.aspx?WT.srch=1&WT.mc_id=2700 49&WT.seg_1=stepchange&gclid=CLK1z7mxp9YCFae37Qodt 6QIKA

    Edit :

    They are a debt mangement company :

    "Debt Management Plan Fees

    We do not charge a set up fee for your debt management plan, which means your payments will start going towards to your debts/creditors straight away.
    For managing your plan we will deduct a monthly management fee from your payment. Our monthly management fee is charged at £25 per month plus £2 per creditor (but not exceeding £60 per month)."


    DONT DO IT PLEASE !!!!!!

    This money could be going to your creditors instead !!!
    Last edited by sourcrates; 16-09-2017 at 3:28 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • fatbelly
    • By fatbelly 15th Sep 17, 6:48 PM
    • 11,218 Posts
    • 8,386 Thanks
    fatbelly
    I assumed it was National Debtline but you are right - there is a northern Ireland based company of that name, who charge £25 plus £2 per creditor per month, to a maximum of £50.

    What a waste of money.
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