New to all this..... Sorry for all these questions!!

kjglen24

Hey everyone

I have finally got my credit report on it's way.... It took a while as they couldn't "find me" and I need to prove who I was which was difficult as I live in a house share and have no bills in my name....

I have a few questions though so if anyone could provide any help I will be so grateful....

1. How do I go about paying the debts off? I don't have letters or anything as I moved so many times they don't know where I live

2. The bigger debts, what happens with these... I would never be able to pay them off in one lump sum?

3. Once they have paid, do they go off my credit report?

4. How long does it take for my credit report to improve (even slightly)?

5. I'm not on voting list, should I be?

6. My partners credit report is excellent, will me being on the list bring it down? (hope not)

7. Anything I can do to try and improve it....?

I understand I sound so naive and probably pathetic... which I would say is a sound judgement... I have been a stupid student, and I want to put it all right now....

I am now 25, hopefully I will enjoy the rest of my life debt free and even have a mortgage one day (even if it is 15 years away)

Thanks so much for the help in advance

moohound

Hello and welcome to the forum, most of us start off pretty clueless as well, I know I did:D

Defaults and late payment markers will stay on for 6 years.

Paid debts show as settled or satisfied, I can't remember which, don't know much about credit reports I never look at mine, I dont like the Horror genre;)

Do you know who all your creditors are? And how much you owe?

You will need to be on the electoral roll if you want to apply for a mortgage in the future.

What do you mean by "will me being on the list?"

Old debts that you are not paying may have ben passed on to debt collection agencies, rather than being with the original lenders.

DCAs MIGHT take a reduced settlement figure to clear the debt, as MIGHT original lenders depending on the circumstances.

Any debts not acknowledged or paid for 6 years become Statute Barred, where the creditors cannot pursue the debts through the courts. This is to prevent decades old 'Zombie Debts' going through the legal system.

Answering questions with more questions I know, but the clearer the picture is the more we can help you.

Are you working now or are you still studying?

Try posting an SOA as well.

vics199

Hi, well getting a copy of your credit report is a good start. Next thing you need to do is write down all your creditors and what you owe to who. Are you paying off any of them at the moment or have you left them all unpaid?

Once you have a list then you will have a clearer idea of what you owe and can start thinking about what you can manage to pay off each month and which debts are more important to pay first (eg ones that may take you to court etc). I'm afraid I'm not an expert in this area as I have never not paid my minimum payments but I'm sure somebody will come along who knows how to go about starting to pay things off.

As for the electoral roll - Yes you do need to register and no I don't think it would affect your partners credit rating. I think their credit rating would only be affected if you are financially linked eg joint accounts, credit cards, mortgage etc.

Once you have paid a debt in full then it will show as 'settled' on your credit record. If you don't pay a debt off in full and agree to pay them back a smaller amount instead then I believe this shows as 'satisfied'.

Things stay on your credit card for 5 or 6 years, I can't remember which it is. Although the longer its been since missed payments etc then the better it will start to look. For example, I had a couple of late payments about 18 months ago but it is long enough now that I have managed to get an interest free credit card this month, so it all depends on what you are applying for etc.

harrys_dad

Welcome, and everyone has to start somewhere. I cannot answer all your questions, but can have a stab at one or two.

Defaulted debts stay on your credit report for six years from the date the default is registered.

Now you have been "found" for your credit report the people you owe money to may "find" you as well.

Everyone should be on the electoral roll so they can vote, let alone for credit rating reasons.

Once you know the size of your debts you need to work out what you have coming in, and what you have going out. The difference is what you have left to service your debts (start paying them off). Post a statement of affairs here and people will come up with advice.

Unless you have debts in joint names your poor credit rating will not affect your partner's rating ( at least I don't think so).

You have taken the first step to being debt free, but the key to that is always making sure your expenditure is less then than your income!

DreamerHelen

kjglen24 wrote: »

1. How do I go about paying the debts off? I don't have letters or anything as I moved so many times they don't know where I live

Your Credit Report should tell you who you owe Debts to - And then you can find their Addresses online and write to them offering them however much you can afford per month or per week or however often you get paid. I would also ask them if they have frozen the Interest because it's always useful to know.

kjglen24 wrote: »

2. The bigger debts, what happens with these... I would never be able to pay them off in one lump sum?

You offer to pay whatever you can afford. If it's £10 per month then that's what it is, if it's more than that then great. Slowly the Debts should come down, especially if they have frozen the Interest as all the payments will then come off the full amount of the Debt.

kjglen24 wrote: »

3. Once they have paid, do they go off my credit report?

I think, if I'm right, it takes 6 years to drop off your Credit Report....but if you settle the Debt I think they put "Settled" against the Debt which might help for future Credit but I'm not sure on that one.

kjglen24 wrote: »

4. How long does it take for my credit report to improve (even slightly)?

Again, I think it takes 6 years for things to drop off your Account, so all the Defaults will be there for 6 years which will hinder your chance to get Credit.

kjglen24 wrote: »

5. I'm not on voting list, should I be?

I believe it CAN help - But someone else might be able to shed more light on this one for you.

kjglen24 wrote: »

6. My partners credit report is excellent, will me being on the list bring it down? (hope not)

If you live together then you will be linked but it shouldn't affect your Partner's chance of getting Credit. I'm not sure what the situation is if you get married - Again, someone else will be along to advise you on that one.

kjglen24 wrote: »

7. Anything I can do to try and improve it....?

I think all you can do is pay everything on time, don't get anymore defaults on your Credit Report and slowly things will drop off your Credit Report and things should improve.

I hope that I've helped a little....I'm certainly no expert in this....but I'm on a self-managed Debt Management Plan and I pay everything Weekly as that's how often I get paid....and it seems to be Working slowly....everything is going down....

Stick with it...and do come back on here and let us know how you're getting on....