How does Payplan etc effect my credit rating?
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vixvic
Posts: 22 Forumite
Hi
New to all this and got a few questions for anyone who can help, please!
Thinking about applying to someone like payplan as my debts seem to be going no where.
Bad credit rating so can't balance transfer anything.
So questions are:
How will payplan effect my credit rating?
Have 2 defaults on my file already so can I make it any worse?!
How long do defaults stay on your file?
Vic
New to all this and got a few questions for anyone who can help, please!
Thinking about applying to someone like payplan as my debts seem to be going no where.
Bad credit rating so can't balance transfer anything.
So questions are:
How will payplan effect my credit rating?
Have 2 defaults on my file already so can I make it any worse?!
How long do defaults stay on your file?
Vic
0
Comments
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Hello vixvic
Welcome to DFW. Defaults stay on your file for 6 years.
Someone more experience will be here to advise you soon but I was wondering why you are concerned about your credit rating? Are you thinking of general credit or mortgage?
If you have defaults already, getting credit will be pretty difficult anyway.Leason learnt :beer:0 -
OK I'm not sure I am the expert in this but I will give you my opinion some of which is based on my experience:
I think that making arrangements to reduce your payments is listed on you rcredit files in some way and so will affect your credit worthiness (although if you make an arrangement to pay less why would you need to get more credit?)
2 defaults are probably what have given you the bad rating and will stay on your file (and so affect your ability to get credit) for 6 years.
Perhaps if you post what you rdebts are and their interest rates, current payments and othe outgoings and income (SOA) you may get some good advice on how to reorganise things to start to pay off wht you owe.0 -
Thanks
Will post SOA soon.
I know my credit rating cant get much worse but just thinking in the future +5 yrs when I finally out of this mess then maybe buying house.
The defaults are definately the problem 4 my bad credit, 1 is coz I returned a car on finance after paying half (didn't realise it would effect my credit). The other is from an ex, joint loan that they decided to stop paying without my knowing. Have paid back a settlement figure they accepted but still have the default.0 -
hi, ive been with payplan for a year now and part of the agreement with them is that you dont take any further credit with anyone.
to be honest, when you finally get the weight lifted off your shoulders, the last thing you want to more credit!!!Helen
xx
Mother of Twins - Please excuse my "double" baby brain!0 -
we have just gone with payplan and been told the same re more credit
defaults stay for 6 years but im not sure if they are removed from file or if they do just sit thereDFW nerd club number 039 'Proud To Be Dealing With My Debts' :money: i will be debt free aug 2010
2008 live on 4k +cb £6,247.98/£6282.80 :T
sealed pot 2670g
2009 target £4k + cb £643.89:eek: /£6412.800 -
Wouldn't want more credit at this stage anyway but a thought 4 the future.
Main problem is I have taken on 2 much credit with no option of balance transferring struggling each month and therefore just adding to the prob by spending on my c/card.
Never have the cash to throw at my debts and so end up paying the minimum amount each month and with interest be lucky 2 clear it in 10years time!0 -
hi, i was exactly the same, by the time youve paid the minimum payments and theyve added the interest on, i was past the limit, and then faced even more high charges!!
I had two credit cards and numerous catalogues, plus a huge hsbc loan and they all accepted the offer that payplan put to them.
The great thing is, is that they only recieve something like 50p per month each, and after 5 years, the debt is written off!!
When i worked it out, after the five years i will have only paid back 50% of my total debt. but the other 50% just disappears!!
I wont be able to get any credit for five years, but thats a blessing in disguise really, i just got one of those mastercard prepaid credit cards, and theyre great coz you control how much you spendHelen
xx
Mother of Twins - Please excuse my "double" baby brain!0 -
partysis81 wrote:hi, i was exactly the same, by the time youve paid the minimum payments and theyve added the interest on, i was past the limit, and then faced even more high charges!!
I had two credit cards and numerous catalogues, plus a huge hsbc loan and they all accepted the offer that payplan put to them.
The great thing is, is that they only recieve something like 50p per month each, and after 5 years, the debt is written off!!
When i worked it out, after the five years i will have only paid back 50% of my total debt. but the other 50% just disappears!!
I wont be able to get any credit for five years, but thats a blessing in disguise really, i just got one of those mastercard prepaid credit cards, and theyre great coz you control how much you spend
I also have a huge loan with HSBC and have been with Payplan for a year. Just curious (and hopeful!)--where did you hear that after 5 years they will write the rest off?
Thanks.Debt-free in May 2015 with the help of Payplan and MSELightbulb Moment: November 22, 2004 :idea:0 -
????snap with payplan too.....not been told anything either......mine gonna take 18years if i dont manage to increase payments0
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DMPs take as long as it takes
IVAs usually take 5 years
the condtions are different however.0
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