Bit of an awkward situation

bigmaz

Hi guys

When checking my Credit Expert rating, it told me I had a default payment every month. So I found out it was a payment that I arranged with a company that I had a loan with. We were going through a sticky patch, and couldnt afford the payments. So we managed to get the payments down to £50/month interest free. So I phoned them to ask how I get this off my record, but the lassie said that the only way I could do this is if I clear the balance which is £10,965, but we dont have that kind of cash. So I would need to get a loan to pay it, but I cannot get credit as I have this default against my name. Anyone got any advice on this? Part of me just thinks I should just keep going with the payments, and just accept I cannot get credit for the next 9 years (if I increase the payment to £100/m).

Thanks in advance my MSE friends

McKneff

Not a lot you could do apart from contacting the company and asking them what they would accept as a full and final settlement. It could be as low as 30%

However, the default will stay on your credit file for 6 years from when it was first registered
whether it is settled or not.

bigmaz

Wow, didnt realise they can offer a reduced settlement figure. Still, dont have that kind of cash though, even if it was 30%.

McKneff

Well, if you ever do, they will start at 70%, you start at 20% and haggle like mad.....till you get to where you can afford.