What a mess!!!

Creditcrunched_2

Hi All,
This is my first post so i hope im posting in the correct place. I just need some advice on how i can get out of the financial mess ive managed to get myself into.

A few years ago i started borrowing, loans, credit cards, overdraft etc. at the time i was living with a friend in rented accomodation and when he moved out i couldnt afford to keep up all my repayments, stupidly i ignored them!

For a long time i burried my head in the sand before starting a DMP through the CCCS, but by that time many accounts had already defaulted!

My situation at present is;
Robinson Way (ex Capital One Card) £224 Defaulted 08/12/05
Black Horse (Car Loan) £9421 In arrears
Blair Oliver (Halifax Loan) £1880 Defaulted 06/03/07
Blair Oliver (Halifax Card) £1135 Defaulted 19/09/08
Barclaycard £141 In arrears
Barclays Bank (bank account) £1134 Bank Default
Aktiv Kapital (HFC Loan) £113 Defaulted 31/03/05

About £14'000 in total!

All interest is frozen and im making payments through the CCCS but i need some advice;

1. Ive heard the defaults will come off my credit file after 6 years but what happens if i still owe money on them? how will this show on my credit report?
2. Ive heard its possible to reclaim charges but have no idea what charges ive accumulated or if i can claim back?

I just want to get my credit file in order as im now with a wonderful and very understanding new partner and want us to build a future together.

Any advice would be gratefully accepted!

RAS

The defaults will "fall off" your credit record after 6 years whether you have paid up or are still owing.

If there is PPI on any of the loans, it is probably mi-sold and you can claim it back, That will reduce your debts. You can try to reeclaim credit card charges but are unlielly to get bank charges back given the OFT caved in.

Tixy

Hi and welcome

After 6years the debt won't show on your credit report anymore - you will of course still owe the money but it won't appear on your report.

The credit cards it is certainly possible to claim back some charges, the bank accounts are more complicated - take a look over here for more info
Reclaim Bank & Credit Card Charges

Creditcrunched_2

Wow, thankyou for the quick replies!
do you think it is worth paying off the smaller amounts first (those under £1000) and then increase the monthly payment to the other creditors on my DMP? or just leave the DMP to run as it is considering the defaults will fall off my credit file anyway?

When you say that the debt wont show on my credit file after 6years, do you mean the default wont show or that my credit file wont even show the debt?

I really appreciate all your replies!

Tixy

According to this http://www.experian.co.uk/consumer/faq/CA1.html#q629 it would imply that the account disappears altogether 6years from the default.
I cannot say for certain this is what happens as I don't have any personal experience of it.

Hannah_10

Creditcrunched wrote: »

do you think it is worth paying off the smaller amounts first (those under £1000) and then increase the monthly payment to the other creditors on my DMP?

I think that is a very good idea, because lets say you have one £1000 debt that was going to take another 18 months to clear at your current rate of paying it back. Well that will fall off your file in 7&1/2 years then (18 months to clear it plus the statutory 6 years). Clear it now and it's gone. In 6 years and a few weeks from now you'll be glad you did.

The other thing about paying them off is you can go for a Full & Final offer. What this means is you offer them a percentage of your debt to clear it in one go. How likely they are to accept it when you're on a DMP and they're getting thier money is question I can't answer, but hey it can't hurt to try it. Might you be interested in that?

Marisco

Hi folks, so it only falls off your file 6 years after the last payment has been paid, or is it 6 years after you've come to an DMP agreement with them?

Tixy

Marisco wrote: »

Hi folks, so it only falls off your file 6 years after the last payment has been paid, or is it 6 years after you've come to an DMP agreement with them?

An credit agreement falls off 6years from the date the account is settled
or
if there has been a default 6years from the date of the default entry whether settled or not.

Hannah_10

Basically as I understand it, it's any information over 6 years years old that falls off.

So if I took out a loan in 2000, and I paid it back till 2007, then because 2004 was 6 years ago none of the records about payments on the loan, defaults or amounts will still show, just the three years after 2004.

I might be wrong though, not you come to ask I'm not totally confident.

Creditcrunched_2

Hi eveyone,
Well its about one year on and im slowly coming to terms with my debts. Im making payments on the DMP and ive managed to clear some of the smaller amounts.

I just have a couple of questions;

1, regarding the 'Black Horse finance' ive checked my credit report and this is still showing as 6mnths in arrears, but im sure i have recieved a letter some years ago stating that the account eas in default. Does anyone have any idea why it would not be showing as a default on my credit report?

2, would it be worth going down the route of trying to reclaim some of the charges on these debts and if so does anyone know how to go about this? is it worth talking to one of the many companies claiming to specialise in this type of thing?

3, this ones a long shot; what chances do i have of obtaining a mortgage? my partner already owns the property we live in and has some equity so we would would need to borrow around 75%

any further advice would be gratefully accepted