D3P0's Debt Free - Update & Advice Needed

D3P0

Hi all,

Been head down trying my best to hammer my debt down. I'm down to just under £30,000.00 from just over £40,000.00. Finally seeing the light. Thanks to MSE and StepChange for all the non judgemental help!

Advice needed...

1 - All but 2 of my debts are shown as 'up to date'. I realise that a default will show for 6 years on my account. I am likely to get a bonus from work, maybe 2 / 3k. What would be best? Target a small debt say 5k and settle it or target the default?

2 - My long term plan is in 6 years time we'll buy a house again. I'll have been debt free for 3 years by then and hopefully have some stability. Stupid question but no-one's going to look at lending to me at the moment are they? We can well afford a mortgage repayment as we pay a mortgage back in rent.

3 - Finally, what can I do to improve my credit rating? Aside from keep my nose clean and stay up to date with information / payments etc...

Thanks again and best wishes to all who are either undergoing debt management or are considering it. It's hard work but finally pleased to say i can see progress...

D3P0

dancingfairy

1) I'd pay off the one that you think is going to cause you the most hassle. Missing 1 payment is not the end of the world, admittedly it doesn't look good but if you continue to make repayments it will show as a blip. Which debt is likely to start charging interest or adding charges on? Who have been the most hassle to deal with? Normally you would start with the highest interest debt but presumably with a fairly small amount there is only a few you could pick off?
2) I presume you don't have a deposit at the moment? You owe 30k and have a default(s) and are on payment plans, so yes I'd say you are correct you are unlikely to get a mortgage.
3) Keep up the payment plans, pay off debts where you can make settlements, don't move house unless you have to (lots of moving around in rented accommodation doesn't look great), register on the electoral role, close/formally cancel cards you are not using, check the data on your files to make sure it is uptodate and accurate. When the time comes it may be worth keeping one credit card open or getting one for people with poor credit scores and using it regularly and paying it off regularly to build up a positive payment history. Oh and regularly paying a mobile bill can help as well.
Good Luck
df

D3P0

Thanks a lot for the advice. I'm quite lucky that all the companies I owe have been accommodating to date.

I'll keep my head down, keep my info up to date and bide my time.

Thanks again