Credit scoring issues

Vikipollard

Very true Matttye, just thinking out loud that's all

Experian_company_representative

This MSE article shows you which utility companies are currently sharing full repayment data with the credit reference agencies.

James Jones

matttye

Vikipollard wrote: »

Very true Matttye, just thinking out loud that's all

Despite what I said above, this MSE article makes a lot of sense: http://www.moneysavingexpert.com/savings/pay-off-debts

Surely it's worth having an emergency fund?

Emotionally, many will find what I'm about to say difficult to deal with. The idea of having some cash in a savings pot feels safe, especially as traditional budgeting logic berates us to always have an ‘emergency cash fund'.

I disagree. It's a must-do aim for the debt-free, but for anyone with expensive debts – particularly on credit cards – it's silly.

The right thing to do is still pay off your debts with savings, including your emergency fund. Yet don't cut up your credit cards, it's important to keep the credit available in case of a substantial emergency (and substantial means just that, your roof falls in or you can't feed the kids; not a new plasma TV).

In other words, if a credit facility is still available for emergencies (i.e. not in default), it does make sense to pay off debts with savings.

If no credit is available then I stand by what I said above!