Debt repayment

jhl1987

I was wondering if someone could help me please.

I have just taken out a loan for my partner to hopefully pay off his debts and start again. He wants to have a 'fresh' credit rating so any suggestions could you please explain how this would look on his credit file, thank you.

He has around £2700 to pay off to payplan, he hasn't made in a repayment in at least 3 months, could he offer a reduced settlement figure that doesn't affect the rating or leave this as an unsettled debt?

He owes around £1000 for an old mobile contract which probably has charges on now, he has not been contacted about this since moving to a new address.

Any help would be appreciated, thank you

toothfairybuttkicker

HI

Sorry to be blunt but if he cant afford to pay his payment plan to payplan how is he going to afford to pay the loan that is in your name and that you alone are responsible for?

However as far as his credit rating is concerned I ws always under the impression that if you are on a payment plan then it is shot until the debt is cleared and then for a few years after that till the defaults drop off!! i most defiantly bow down to others greater wisdom on this.

Good luck x

McKneff

His credit is already shot.

And it will be for 6 years.....

I can only agree with everything that toothfairyetc. says.

Try offering full and final settlements but get it all in writing before sending any money.

[Deleted User]

I would strongly advise against taking a loan to repay someone else's debt: if you split up, you are still solely responsible for the loan.

nicp60

jhl1987 wrote: »

He wants to have a 'fresh' credit rating so any suggestions could you please explain how this would look on his credit file, thank you.

A fresh credit rating - wouldn't we all?! I'm sorry, but these debts will follow him for at least 6 years. It isn't as easy as paying it off and then starting again a few months later.
The best thing to do would be to get copies of his statutory credit reports from Experian, equifax and noddle (£2 each and noddle is free). He's probably got some defaults already - these will remain on his file for 6 years from the default date no matter what. A settled default does look slightly better on his report than an unsettled one though. Check that the creditors have actually defaulted him and haven't just been marking him as paying late every month.

jhl1987 wrote: »

He has around £2700 to pay off to payplan, he hasn't made in a repayment in at least 3 months, could he offer a reduced settlement figure that doesn't affect the rating or leave this as an unsettled debt?

He could offer full and final settlements to his creditors, but the damage to his credit report (as others have said) is done I'm afraid.

jhl1987

Thank you for your responses, I understand the decision I have made.

Is there any way to get defaults removed?

What is full and final settlement and how do you go about it? Would this look like a settled default on his credit report?

Thanks again

Moneymash

Oh my goodness, did I read right, yes I did....you took out a loan on behalf of your partner!

I really hope this rescue mission works out for you.

As you can see from my signature I struggle with my own debt, let alone taking someone else's on.

owen_money

The only way to get the defaults removed is wait 6 years. Why would they remove the defaults? He defaulted, end of

nicp60

jhl1987 wrote: »

Is there any way to get defaults removed?

Absolutely not. How would that be fair?! The credit report must be an accurate representation of how the accounts were run.

jhl1987 wrote: »

What is full and final settlement and how do you go about it? Would this look like a settled default on his credit report?

A f&f settlement is basically paying off a % of the debt in return for the creditors writing it off. Normally after you have defaulted creditors would be open to accepting a lower payment. You would normally write to them and offer 50% of the debt to have it settled and negotiate from there.
It would appear on the credit report as either a settled default, or a partially settled default. It makes very little difference which, as the default itself will cause the issues.

fatbelly

Factsheet | Full & Final Settlement offers

jhl1987

That's great thank you,

my next question was for a template letter which was on that link.

Thanks again for all your help