Advice please!

scoops82

Hi


My partner has got debt from before we met but she isn't exactly what type or what she should do for the best.


She currently has debt of about £4.5k - I am not sure how long she has had this or what debt was at its peak.


She pays welcome finance £50 pm, im not sure how long this agreement has been in place. Apparently there is no interest being added to the loan.


She has a salary of about £12k a year so can only afford £50 pm at the moment but it will take until December 2021 before its cleared


1 - Do you know hat type of agreement this is?
2 - If its a IVA is there a timeframe on when the payments should stop?
3 - How bad does this affect her credit rating?
4 -Do these companies offer early settlement figures, if so, how badly would that effect your credit rating?
5 - She has no assets so what is her best course of action?


I ask as im hoping to clear her debtors for her but at the moment I cannot afford £4.5k


Thanks for your time.
S

fatbelly

scoops82 wrote: »

My partner has got debt from before we met but she isn't exactly what type or what she should do for the best.


She currently has debt of about £4.5k - I am not sure how long she has had this or what debt was at its peak.


She pays welcome finance £50 pm, im not sure how long this agreement has been in place. Apparently there is no interest being added to the loan.


She has a salary of about £12k a year so can only afford £50 pm at the moment but it will take until December 2021 before its cleared


1 - Do you know hat type of agreement this is?
2 - If its a IVA is there a timeframe on when the payments should stop?
3 - How bad does this affect her credit rating?
4 -Do these companies offer early settlement figures, if so, how badly would that effect your credit rating?
5 - She has no assets so what is her best course of action?

Hi Scoops

So she has one debt of 4500 and pays 50 pm to it. So 7.5 years to clear on my maths, which makes it mid-2022.

I assume it's just a payment arrangement. She would know if she had an IVA and would have more debt and more surplus income going into one.

It may not be affecting her credit file at all - she can check for £2 to see if it's mentioned. If there is a default registered, then it will drop off 6 years after the default date.

Best option? Up to her:

1. Continue with the 7.5 year plan
2. Try to get a lump sum, say £1500 and try a full & final settlement
3. If she has less than 50 surplus per month, debts under 15k, not a homeowner, car under 1k (if she has one) and is in England/Wales then she qualifies for a Debt Relief Order which costs £90, and will write the debt off, but this will cause a fresh entry on the credit file and it stays there for 6 years.


Whatever she chooses to do, she should check her credit file and request a copy of the original agreement from welcome by a cca request