When will I see daylight with defaults?

MrSweet1991

Hi All,

it's been a while since I've been on here and it's mainly because I haven't been able to manage my finances properly. However I have made a sharp turn and have made a decision that will benefit me greatly. However even when I think down the road and clearing my debts, the defaults still linger over me and I was wondering is it even possible to see daylight when you have defaults? Say I pay all my debts off, come out of my overdraft and start to gain some on time payments history, won't my defaults always regardless of anything I do just knock me back until after the 6 years when they'll be removed?

Many Thanks,
Dan

Dovah_diva

Are the defaults satisfied? While they will always have an impact, the older they are the less of a hit they'll give, especially if you have other lines of credit you are managing well.

MrSweet1991

Dovah_diva wrote: »

Are the defaults satisfied? While they will always have an impact, the older they are the less of a hit they'll give, especially if you have other lines of credit you are managing well.

Hi,

unfortunately they aren't, well not at the moment anyway. But I plan to have these defaults done within the next few months (I have around 4 - 5 defaults), I remember a while back though someone mentioned that it's not always the best option to pay off the debts in full. The reason being you can set up a payment plan and as long as you pay on time it will help show you are paying on time every month. Would you recommend this for my defaults or would it be more important to get them paid off?

In addition, I've read on this forum that it is possible but not likely accepted to ask politely to the debtor that for a full repayment that they remove the default?

Many Thanks.

BugsyBrowne

MrSweet1991 wrote: »

Hi,

unfortunately they aren't, well not at the moment anyway. But I plan to have these defaults done within the next few months (I have around 4 - 5 defaults), I remember a while back though someone mentioned that it's not always the best option to pay off the debts in full. The reason being you can set up a payment plan and as long as you pay on time it will help show you are paying on time every month. Would you recommend this for my defaults or would it be more important to get them paid off?

In addition, I've read on this forum that it is possible but not likely accepted to ask politely to the debtor that for a full repayment that they remove the default?

Many Thanks.

Have your defaults been bought by debt collection agencies?

MrSweet1991

BugsyBrowne wrote: »

Have your defaults been bought by debt collection agencies?

Hi,

some of them have and some of them haven't, if I remember correctly the majority of them have been bought by collection agencies.

Thanks for your reply.

Thrugelmir

MrSweet1991 wrote: »

Would you recommend this for my defaults or would it be more important to get them paid off?

As far as possible settle them in full. Then you've a clean history going forward.

While an ARP may seem like a way of getting an interest free loan. Lenders will looking for activity such as this and score you accordingly when it comes to a mortgage application.

MrSweet1991

Thrugelmir wrote: »

As far as possible settle them in full. Then you've a clean history going forward.

While an ARP may seem like a way of getting an interest free loan. Lenders will looking for activity such as this and score you accordingly when it comes to a mortgage application.

ok, so when someone runs through my credit file they can distinguish fully settled accounts (made in one lump sum) vs repayment plans (paying off with monthly instalments)? and settling debts in full would be my better option if the funds are available?

Thanks,
Daniel.

BugsyBrowne

MrSweet1991 wrote: »

ok, so when someone runs through my credit file they can distinguish fully settled accounts (made in one lump sum) vs repayment plans (paying off with monthly instalments)? and settling debts in full would be my better option if the funds are available?

Thanks,
Daniel.

At the end of the day however way you look at it 'those defaults on your credit file don't look good whether they're settled or not.

Old defaults are better then new defaults but a default is a default and lenders will be hesitant to give someone with not just 1 default but 5 of them any form of a decent rate on a credit product if any.

Once your 6 years are up is when lenders will start taking you more seriously but in the mean time keep paying credit products if you've got any on time as when the 6 years is up you'll look a lot better.

MrSweet1991

BugsyBrowne wrote: »

At the end of the day however way you look at it 'those defaults on your credit file don't look good whether they're settled or not.

Old defaults are better then new defaults but a default is a default and lenders will be hesitant to give someone with not just 1 default but 5 of them any form of a decent rate on a credit product if any.

Once your 6 years are up is when lenders will start taking you more seriously but in the mean time keep paying credit products if you've got any on time as when the 6 years is up you'll look a lot better.

Thank you for responding, so just to clarify does it not matter which way I choose to repay the debt (in full or monthly payments) as long as I don't miss any repayments?

I'm planning on paying off all my debts between January to April next year, paying a debt off in full or in instalments will be a matter of personal choice which is why I'm trying to identify if there is a better way.

I also had a default added early this year as the company I owed money to gave me 1 week to pay the full amount which wasn't at the time possible. So that's going to go against me, I don't know if it's possible to give an answer to but.. If all my debts are paid off by April next year (taking in to account I had a default added early this year) and I make on time payments from thereon, how long could I expect to wait until I can get half descent credit offers? I'm not referring to mortgages or anything like that, just a half descent credit card and so forth. I can appreciate there's no way of giving an exact answer, but maybe giving an estimation in years before I could achieve this?

Many Thanks,
Daniel.

BugsyBrowne

You need to get some managed credit card payment history on your files from the likes of high interest credit cards like Vanquis and Cap1 classic these if managed properly is a positive.

As for getting the best deals I wouldn't know but it won't be in the next couple of years

MrSweet1991

BugsyBrowne wrote: »

You need to get some managed credit card payment history on your files from the likes of high interest credit cards like Vanquis and Cap1 classic these if managed properly is a positive.

As for getting the best deals I wouldn't know but it won't be in the next couple of years

Thank you that's what I was hoping to hear, the only credit I will have after I've paid off my debts will be Virgin Media, I've always paid these on time and my contract isn't due to run out until late 2014, will Virgin do me any good or would you recommend looking more specifically at a credit card as you mentioned? This is of course after I've paid all my debts.