OMG! Is there an alternative?

CalumsDad

Here's the history. Over the last few years I've built up a significant amount of debt, overdrafts x 2, Energy Bills, Credit cards and payday loans.

At present, the bulk of the debt (about 49k) is on my credit file and I'm not paying anything, nor am I getting chased. Think they're tired of me.

Debt Management or an IVA means my outgoings go up and it takes forever. Plus, as a self employed person, I have no 'regular' income as it peaks and troughs through the year.


A consolidation loan does the same, but at least then I can negotiate with my creditors for settlement figures, clear everything off my credit report and get back to normal. Plus, in 3 years time I can draw down enough funds from an old SIPP to clear the loan.

Trouble is with my credit file, I can't find anyone to give me a loan.

What can I do?

Thanks

RAS

The last thing you should do is take out a consolidation loan.

Six years after the default date, bad credit records fall off your records, take out a loan and you just renew everything.

And if you make not attempt to pay, and they do not chase you, then after 6 years the debt is statute barred.

Alternatively you might be able to put money aside when you have spare and do full and final settlements.

CalumsDad

Now that IS interesting! Then automatically ones rating starts to improve?

:beer:

OneLife_OneShot

It will start to improve when you pay of the debt and the defaults fall off.

CalumsDad

But even as they close... the history stays for yet another 6 years, so if I incur a default today, it'll still be on my report for 12 years?

OneLife_OneShot

No it all goes away after 6 years from the default date. If you got another default issued today then it would stay for 6 years.

gizmo111

CalumsDad wrote: »

But even as they close... the history stays for yet another 6 years, so if I incur a default today, it'll still be on my report for 12 years?

A default drops off after 6 years whether settled or not.

heartbreak_star

Unless you make a payment then default again.

HBS x

gizmo111

heartbreak_star wrote: »

Unless you make a payment then default again.

HBS x

They cannot register a default for the same debt twice.

OffGridLiving

If you start using your pensions (SIPP) to pay down your debts while you're working, how are you going to afford to live when you're a pensioner?

You're 52 now and if you take out an IVA you'll be free of debt in 5 years at age 57, which then gives you 5 to 10 years to build up a bigger nest egg for retirement.

CalumsDad

What confuses me a little, is having looked at the default dates, they seem to be a long time after the debt was incurred and so a debt I incurred in 2008, was only marked as a default in 2012.

This is using data on Noddle if that makes a difference, their scoring seems to be different to experian for example.