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General Debt Questions

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Hi, I'm a newbie so please don't give me a hard time :-)

I've been on a debt management plan with CCCS for what feels like forever! Debt currently stands at about £10k and original balance was £20k so half way there! Have been having babies recently and need to crack on with paying it off. My questions are:

1. When are debts removed from credit file? Is it 6 years from when last payment is made or is it 6 years from when finance was taken out? Credit file is dire but I do have a mobile phone contract that has carried on and kept something well paid on file
2. Is it unlikely that I'll ever get a mortgage? After my original experiences of debt, I don't want to go down that route again although a mortgage is something I'm really keen to get in future
3. Can I request creditors reduce balance when on debt management plan? Or am I better off just carrying on paying it as normal?

Thanks for your help!

Comments

  • moohound
    moohound Posts: 1,209 Forumite
    Debt-free and Proud!
    Welcome to the forum, you seem to be a long hauler at paying off your debts already :D

    There are lots of people here with good advice so feel free to ask anything.

    1) Defaults fall off after 6 years

    2a) You might get a mortgage based on your income(s), Mainstream high-street lenders are unlikely to consider you with defaults, but a broker might help find an alternative lender.

    2b)You will need a hefty deposit these days, so you will need to save for one. (no you can't get a loan for the deposit, just incase you thought you could)

    3) Not sure what you mean by this, do you mean offer a full and final reduced settlement?

    xx Moo
    ISA £1675 :DMiniMoohound savings £3685.86 :T Plus £3800 CTF :)
    'MrMoneyMuststache' my new hero, Martin Lewis my long time hero
    Poacher turned Gamekeeper
    Roadkill rebel No 52 Aug £1.34p Sept 24p Oct 5p Nov 5p Sealed pot Challenge No 403 £176.66(2014) :staradmin NOV NST No 20
  • Thanks that's really helpful. Was thinking more about mortgage after debts are gone. It's such a long, hard slog. Cannot wait to be debt free. I earn £31k and so should be putting more money into clearing debts but being stung by huge childcare costs at moment! Yes, just wondering about final settlements! Debt is evil. It's really changed my attitude to money so just petrified about being punished forever by mortgage lenders.
  • happy_bunny_2
    happy_bunny_2 Posts: 4,488 Forumite
    Sammy1983 wrote: »
    1. When are debts removed from credit file? Is it 6 years from when last payment is made or is it 6 years from when finance was taken out?

    6 years from the default date or when the account is settled (last payment made) for non defaulted accounts.

    Are your accounts all defaulted? Are the dates reasonably accurate.

    Sounds like you are doing great at clearing these :)
    :beer:
  • moohound
    moohound Posts: 1,209 Forumite
    Debt-free and Proud!
    I recently paid £36000 worth of debt with £24000 in full and final settlements, my defaults were less than 10 months old, for older debts you can sometimes do better, even as low as 25%.

    There is a full and final help thread, so have a read through that (not all of it, its really loooooooong:)) for pointers, you must word your offers so they can't sell the remainder on, or chase you for it in the future. Partial settlements will be visible on your credit file.

    I don't know exactly how this would affect your chances of getting a mortgage as it did not apply to me (I only have 8 and a half years left on my mortgage and won't be moving house) you need one of the smart people to reply for that.
    ISA £1675 :DMiniMoohound savings £3685.86 :T Plus £3800 CTF :)
    'MrMoneyMuststache' my new hero, Martin Lewis my long time hero
    Poacher turned Gamekeeper
    Roadkill rebel No 52 Aug £1.34p Sept 24p Oct 5p Nov 5p Sealed pot Challenge No 403 £176.66(2014) :staradmin NOV NST No 20
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