Mortgage limbo

Touchdown49

Hi

I wonder of somebody could give me advice please ? I have around 25k balance across three credit cards, but have recently sold my house so have the money to pay off the balance. Before I paid them off I heard about a company that pledged to cancel or reduce my credit card balances (sounded too good to be true) so I signed up and paid them a fee to do so. That was 6 months ago and I am still in limbo. I am paying the interest every month which is eating into my deposit, plus I can’t apply for a mortgage until the cards are paid off. I read on this site that any dealings with companies such as these would write off any chance I had of getting a mortgage as it would go on my credit rating. I phoned Experian and they said that it would just go on my rating as paid off / satisfactory, but I am still worried.

Do I i) pay off the credit cards and apply for my mortgage with only 10% deposit which is what I have. ii) wait until I hear if my claims are successful which means I would have more deposit but have to pay interest every month until I do, plus I run the risk of there being a black mark on the credit record.

HELP !

Joe_Bloggs

If you borrowed the money then pay it back. This type of conduct is appreciated by present and future lenders. You may have to spend less or get more for your money. It may also be worth considering saving money with the financial institutions that you may wish to deal with for your mortgage.

I am paying the interest every month which is eating into my deposit, plus I can’t apply for a mortgage until the cards are paid off. I read on this site that any dealings with companies such as these would write off any chance I had of getting a mortgage as it would go on my credit rating.

Pay off the cards and save. It makes financial sense if the interest on the cards is more than the taxed interest on your savings.
J_B.

Touchdown49

Thanks for the advice, I know it makes sense and it is wrong to try and wriggle out of what I owe, but human nature says that if there is a possibility of writing it off then its worth a try. I just wish I had never started and paid so much needless interest. Too greedy.