329 credit score + £20,000 debt but just inherited a lot of money. Help please!

CraigMoley

Hello all, apologies if there's a similar forum posted however just wanted to get some advice about what to do financially with some inheritance coming next week?

I'm 26, excellent career prospects (still in training at the minute though), share a rented house with mates so only pay 350 all in, clued up upstairs however terrible with money. My credit score is 329 and on paper I owe £20,000 to creditors. If I'm totally honest, from working since 16 I have never been good with money at all and have always had debt. I went a few years living far beyond my means and spending money that I didn't have, hence the debt. I very rarely make a payment when it's due, if at all to be honest. I've borrowed money and not returned it to all kind of payday loans and have really got myself in a heck of a lot off debt.

Next week, i am about to inherit over 80,000 after tax and if possible I would appreciate some advice on what to do and maybe some answers to these questions.

First of all, I have good intentions with this money but due to the score or lack of should I say on my credit file, I feel I won't be able invest the money into a mortgage.

I am going to pay off all debt, but was wondering if I could haggle with the creditors I owe money too as I can pay the loans all off in one? For example.... Company X lent me 1000 4 years ago, haven't paid a penny back, now with debt company and is around 3000 now.... Would it be possible to haggle them down, and what would you think would be a good haggle price? Most of my debts are pretty much all like that so any saving would be a bonus.

If I couldn't I'll still pay and would have £60,000 left... Would should I do with this money.... Surely I can't get a mortgage right? Or can I? Average housing prices around my area are 180,000. I earn £19,000 as still training. One more year and pay goes up considerably.

Also... When I pay the creditors off, can I ask that they take away the defaults on my credit report?

I need to improve my credit score pronto as would really like to invest in property or something as I'm a little worried I may blow it way.

Any advice would be highly appreciated.

Craig

knack92

The 329 score is pretty meaningless as you do not have a universal score/rating. Each lender has their own criteria for assessing you.

CraigMoley

Still a very low score

forgotmyname

No its not. Because its meaningless. My FREE score is more accurate....


I score you 2 custard cream biscuits.

See thats a good score..

-taff

Post on the Debt Free board for more help with Full and Final settlements and defaults etc.
Post on the savings/investments board for what to do with what's left over

haras_nosirrah

When you say property is 180k what property is that? A 1 bed flat or a 3 bed house?

From what you have said the defaults are very recent. This probably means no mortgage for the considerable future maybe even 6 years. All actions have consequences and by taking their money and not paying it back on time if at all this is the consequence.

If I were you I would get the debts settled as cheaply as possible and put the money in a 5 year bond so you can't get at it. As long as you change your behaviour and stop borrowing money you could well be able to then get a mortgage. It will also give you time to get qualified and learn to live within your means. If you do get any more credit set up a direct debit so that they get their money back on time.

Gaz83

CraigMoley wrote: »

I have good intentions with this money

CraigMoley wrote: »

I am going to pay off all debt, but was wondering if I could haggle with the creditors I owe money too as I can pay the loans all off in one? For example.... Company X lent me 1000 4 years ago, haven't paid a penny back, now with debt company and is around 3000 now.... Would it be possible to haggle them down, and what would you think would be a good haggle price? Most of my debts are pretty much all like that so any saving would be a bonus.

*Has good intentions with inherited money*

*Is looking for ways to get out of paying debts rightfully owed*

CraigMoley wrote: »

Any advice would be highly appreciated.

Pay what you owe.

d70cw6

Pay your debts and don't fritter away the inheritance. (Please dont buy a brand new sports car! Believe me you dont want to find yourself having wasted that nest egg in 5 years time with nothing to show for it.)

somethingcorporate

forgotmyname wrote: »

No its not. Because its meaningless. My FREE score is more accurate....


I score you 2 custard cream biscuits.

See thats a good score..

That's very poor on my bourbon scale. He only scores half an apple and a couple of crisps.

Back to the drawingboard OP!

Agree with the above, rightfully pay what you owe and then do some real planning.

thebritishbloke

I agree that you should pay what you rightfully owe.

However, to answer your question, if it's with debt collection agencies then yes, you will be able to haggle it down. E.g. If you owe £1,000, you could probably offer them £300 and they'll come back and say £600 or something. It only takes a phone call, but if you're going to do this, don't mention to them about your inheritance.

You will not be getting a mortgage any time soon with defaults on your file, and the companies will not remove the defaults just because you settled your debt.

Thrugelmir

CraigMoley wrote: »

I am going to pay off all debt, but was wondering if I could haggle with the creditors I owe money too as I can pay the loans all off in one? For example.... Company X lent me 1000 4 years ago, haven't paid a penny back, now with debt company and is around 3000 now.... Would it be possible to haggle them down, and what would you think would be a good haggle price? Most of my debts are pretty much all like that so any saving would be a bonus.

You can cross the lenders off your Xmas card list if you make F&F settlements. Which may make future plans more difficult to achieve. Lenders like elephants don't forget.