Advice Needed on Payment Plan

Sinhanada

Hi there

I ran into problems a few years ago with Payday loans and have since made an arrangement to pay these off thanks to Stepchange. They have been fantastic in helping me through a very difficult period.

In the meantime I have married my wife and she owns her own house and has a good credit file. She wants to extend her mortgage and add me onto it (As I do earn a good wage this would boost our spending power). Obviously with me being on a payment plan this would go against us, but I was wondering if paying off the oustanding debts (about 2 years worth at £4k) on her credit card and waiting a few months would help? She would still be under 50% of her available credit with this done and I'm sure I could negotiate settlement payments with the various companies. On the plus side it would also mean no more debt from mine.

Any advice greatly received.

Many thanks

G

Tixy

Hi

What actually shows on your credit reports at the moment?

Even once your debts are paid off if you still have defaults/arrangements to pay showing on your file and become financially associated with your wife then these negatives will still likey impact on your wife's ability to get credit or at what rate she can get credit.

Sinhanada

Actually that is something I haven't looked at in a while and I know it will be worth a look.

I currently have seven defaults \ arrangements to pay and have been paying these religiously for the past three years.

How long would they continue to affect our ability to get credit? The house has 50k in equity and I do not want to adversely affect her which is why I'm seeking advice before I take that plunge.

Tixy

While ever they appear on your file they could have a negative impact on her.

Defaults drop off 6years from the date of the original default shown on your credit file (whether fully paid or not at that time). Ideally you would want to wait until they had all dropped off before becoming financially associated/trying to put you on the mortgage etc.

Sinhanada

Thank you Tixy, I think that gives me the clearest indication of what to do and when. At least she has the clear credit file (And is fantastic with money - so much so she manages mine now).