Am i missing something here?

princepilot

Hi,

I am in debt to the tune of about £12k , various things like credit cards , door to door loan , mobile phone contracts etc

I have read on here about someone having similar debts and paying them off only to find out they are STILL refused for anything they apply for.

My brother has debts of about £35k and had a spell of about 12 months of not paying them , therefore getting defaults etc.

He is paying them all religiously every month and cannot get anything either.

I read on here of a person who paid all his debts off and couldnt get anything. The person who replied to him said "you will be hard pressed to get anything for 6 years".

SO IN REALITY, WHETHER I PAY ALL MY DEBTS OF IN FULL, OR AT A REDUCED PRICE , OR GO THE IVA ROUTE , OR DONT PAY THEM AT ALL , I WILL STILL BE !!!!!!ED FOR 6 YEARS.

THIS SURELY CANT BE RIGHT?? , THAT IS NO INCENTIVE FOR PEOPLE TO PAY THEIR DEBTS OFF!

If anyone can shed any light on this i would be very grateful

Matt

postingalwaysposting

princepilot wrote: »

THIS SURELY CANT BE RIGHT?? , THAT IS NO INCENTIVE FOR PEOPLE TO PAY THEIR DEBTS OFF!

Matt

The incentive for most people to pay there debts off are that they havent got the weight on thier shoulders, and thus debt free. This then means all the money that enters there bank account is thier own. Becoming debt free is a feeling that you love a cherish. I dont know about others but most of us will never get credit again anyway as here has taught us how to budget/save. Of course there are 'good debts' ie mortgage etc. But being part of this forum i hope people wont go back out and get credit cards at 29.9%~39.9% interest rate. And 6 years isnt very long in the relation to debt anyway

princepilot

I agree with you and i wont have any debts in the future (after ive done an iva or paid them off) , but what i was asking is there will be no difference to my credit file if i pay them in full or i pay a reduced amount through an iva will there? as both will hamper my credit file for 6 years

Matt

Uniscots97

I didn't think there was a six year 'black period' if you paid it without an IVA? I could be wrong though. I thought it was six months once things were paid off

princepilot

Thats what i thought , but reading posts on here , and my brothers experience i think it is just the same whether you pay all or pay little thorugh an iva.

Im selling my house and stand to make £18k from it , i know one thing, if it is the case that i will still be stung for 6 years , im gonna do an iva and just hide the 18k in a safe!

jo1972

Hope you don't mind me asking a question related to this on your thread Matt, but can someone explain something to me.

I know that even when a debt is paid up it still stays on your credit file for 6 years but when it's taken off after that period does your credit score increase or does it increase after the debt is satisfied i.e. before the 6 years are up?

I've got a couple debts left on there now which I am paying off regularly, also have 2 CCJs and really want to get a mortgage soon but don't think it's ever going to happen, I can't even get approved for a mobile phone contract so I'm sure no one's gonna lend me £200k! Is there any way to improve your credit score??

princepilot

Hi ,

Its actually easier to get a mortgage than to get a mobile phone contract!!

Mobile phone uses credit scoring mainly , and if you have a past debt with them to determine whether they will accept you. Mortgage is a total look at you and your finances!

The best way is to have credit available (credit card) , and dont actually use it

matt

Uniscots97

So if you don't have an IVA and have just paid off your debt on your own, would you for instance be able to get a car loan after everythings paid off? How long would you have to wait?

princepilot

Hi,

No this is the point of this thread. I found out that whether you pay it off or not , you are stuffed for 6 years!!,

Companies just look at the problems you have had and say "**** you"

pinkshoes

I have read on here about someone having similar debts and paying them off only to find out they are STILL refused for anything they apply for.

Surely this is a good thing, because once you've finally paid off all your debts, why on earth would you want to appy for more?!?!

6 years of living off your own money sounds like a good idea to me, and you can begin to enjoy being debt free. Even after 6 years, money lenders will still see you as a high risk, so either won't lend, or offer you loans with VERY high interest rates, which they do to put you off.

Uniscots97

SO are you barred from getting credit like a car loan for 6 years after paying debt off (non-IVA) or not? I'm confused. It'd be about the only credit I'd be looking to get after paying off my debt (maybe switching my mortgage).