Best Way to clear my debt

graham2335

Below is what I have been paying for the past 3 months, I now work part time.
Should I save and pay 70% in a lump sum, how long would it take to remove of my credit file I have had the debt for about 5 years and only recently started paying because I had to to keep my job.

Jobseekers Allowance: £260
Total Income £260

Outgoings
Rent: £100
Travelling Expenses £60
Food: £30
Clothing: £5
Phone: £15
Health £10

Total Outgoings: £220
Money for Creditors £40

Creditor
Student Loan (smith and Lawson) £339, £1.77 monthly

scott call (Vodafone) £427.47, £2.24 monthly

Legal Recrovies £2254, £11.79 monthly

Lloyds tsb (ruth bridge) £1739.92, £9 monthly

sandtender £800, £4.18 monthly

HSBC (robinson way ) £2088, £10.92 monthly

graham2335

whys no one replied, anything i can change or you dont understand?

mandz1

hi graham,

from what i understand debts stay on your account 6 years from default date.

You say you are now working parttime, how much are you getting paid now? If your debts arent having interest added and your creditors are ok to keep receiving the amounts set out above, you could save the money for full and finals, or you could overpay at the end of each month.

hope this helps a little bit

graham2335

if i am paying every month would they even accepted full and final, also does full and final clear all your debt. or is it different to when you actually pay all the money.

6 years on your file from your last contact with them?

it depends one week i could get £120 anther week £230

Mach4

Graham if you want a better reply tell us a bit more about your situation. how you got the debt what the job is, is it likely to continue, what future plans are etc.

If you are going to be on JSA forever and your soa is going to stay the same I would advise you to not pay anything until they give up, sevral years down the line. If you dont acknowledge a debt for 6 years it is statute barred.

On JSA you have no money to pay back your debts so unless you are going to get off it then don't pay them and don't acknowledge them. You dont even have enough money to go bankrupt so if you are on JSA for the forseeable then just ignore them you dont need credit anyway as the state/society is going to be looking after you.

If your job is going to continue/ you are going to move forward with earning money give us an indication of your plan so we can advise you better.

graham2335

Well I got into debt because I dropped out of university twice and started borrowing money as I had no job and spent my student loan.

I hate being on JSA, so I always want to work my future plans are hopefully move to London and have a well-paying job, don’t know what it though.

It also looks like my current job will contuie, the reason I have not told the debt people I have a job is cos they will need more money but I need that for thing they thing are not important like driving lessons very expensive 2 1 hours a week, going out occasionally. Saving to move to London.

graham2335

I want a good credit rating so i can get a mortgage's eventually if i want one.
I can get jobs in banks if i want them.

DeltaWing

Personally I'd get your debts sorted out first, before considering a move to London. London is not a cheap place to live - you'll probably end up even more in debt very quickly. If you are lucky enough to get a job, it won't be a well-paying one.

Get your debt sorted, get that weight off your shoulders, and go from there.

Mach4

Graham,

Thanks for the extra info.
If you want to make a success of yourself which it sounds like you do then you need to sort the debt.

Extra cash should not be going to going out or driving lessons.

Fund for moving to london is ok if you think that will earn you money long term.

Cars are horribly expensive to run (my biggest expense) if you dont need one now to get to work then you shouldnt be spending cash to get one. If you move to london you wont need a car they are almost useless centrally.

Mach4

graham2335 wrote: »

I want a good credit rating so i can get a mortgage's eventually if i want one.
I can get jobs in banks if i want them.

Sorry to be bearer of bad news. I doubt you will ever work in a bank with your debt history.

You will be able to get a mortgage but only in 6 years once this is off your credit rating (presuming you get on top of it now)

graham2335

In terms of car, I think it’s a good future investment as I know if I don’t get it done now I never will and I never know if or when I may need one.
I use to think that when I was 19,20 had bad instructors found it hard and could learn in the future. But I really wish I learnt then.

What about other finical jobs do they check, can I not get a job there either.