Advice please

sparkban

Hi Newbie here

I hope I'm posting in the correct forum and apologies if I am not.

My partner and I have been renting now for around 4 years and in honesty I'm fed up of lining someone else's pockets !

It's costing me 1k a month just on rent.

We do have some savings and want to look at buying a place ASAP.

Many people say wait wait as the market is going to crash soon but I'm not so sure.

The problem however that I have is an outstanding default from a credit card.

The debt is not settled and is just over 4 years old.
It's not for a large amount in truth just over 1k.

However I was previously advised that as the debt shows as a default there is no point paying it as either way my credit file is going to be tarnished for 6 years from the default date.

So do I pay it or not as I want to get a mortgage ASAP.

We warn combined CIRCA 85k and just want our own place and not to line someone else's pockets !


Any help or advice is appreciated.

suziqqq

go and see a mortgage broker they can advise you whats best

G_M

An unpaid debt looks worse on your file than a paid off late debt.

A paid off debt will disappear from your file faster than an unpaid debt.

An unpaid debt will cost you more in ongoing interest than a paid off debt.

An unpaid debt is unfair on the creditor.

So my advice is to.......

arbrighton

I don't understand why on earth you wouldn't just pay it off with those combined earnings and having savings (presumably with little to no interest).

sparkban

4 years ago my salary was lower and I wasn't with my partner.

What's the point paying it off now if either way it's going to cause an issue with getting a mortgage I might as well save the money and just let it remove from my credit file in 2 years.

If clearing it now will still have an adverse effect there is no point paying it.

phill99

sparkban wrote: »

4 years ago my salary was lower and I wasn't with my partner.

What's the point paying it off now if either way it's going to cause an issue with getting a mortgage I might as well save the money and just let it remove from my credit file in 2 years.

If clearing it now will still have an adverse effect there is no point paying it.

Evidently you haven't read post #3 by G_M.

With your attitude you will be lucky to ever own your own home.

Pixie5740

Has your creditor ever chased you for this debt? Under the Limitations Act 1980 a creditor has six years (five in Scotland)to chase most unpaid debts. This ‘limitation period’ starts from the time of your last payment, not the total length of time you’ve been making payments. If a court judgment (CCJ) has been registered against you before the limitation period has passed it can be enforced at any point. There is no limitations period for a CCJ.

So it might not just be as simple as the default "falling off" your credit file if a CCJ has been awarded against you. If you do have a CCJ then it's hasta la vista mortgage.

nicegirl

It's your debt, that's the 'point'. Terrible attitude!

oystercatcher

How would you feel if someone owed you that amount of money and just didn't bother to pay it even though they could afford to ?

Terrible attitude.

harrys_dad

sparkban wrote: »

4 years ago my salary was lower and I wasn't with my partner.

What's the point paying it off now if either way it's going to cause an issue with getting a mortgage I might as well save the money and just let it remove from my credit file in 2 years.

If clearing it now will still have an adverse effect there is no point paying it.

Sorry, new poster or not, your attitude stinks. If this is your view on debt why would anyone consider lending you money to buy a house? A mortgage is a debt, albeit one secured on your house.

Go and read the debt fee wannabe board and check out the efforts that responsible people make to pay off their debts, even though most of them earn far less than you.

dotchas

Word fail me:eek:..............well almost!