is it better to have a payment arrangement?

lookingforthelight

Hi,

Please don't bite my head off....

I have 3 settled defaults and 2 current/outstanding defaulted accounts for approx £1200 each. I am currently paying nothing towards them. No interest or charges are accruing.

I plan to pay them off in next March, 2016 but am currently paying nothing at all.

Will it improve my credit rating, even by a small margin, if I have a payment arrangement set up. Does it look slightly better with an 'AP' in place?

Or shall I just forget it until Im ready to settle next March?

Thanks

sourcrates

Hi,
It's really irrelevant unless you intend to apply for more credit, are you been chased for these debts ?
If you intend to settle in approx 1 years time, you do run the risk of further action by the creditor, keep a close eye on the postbox.

Why next March out of interest ?

immoral_angeluk

lookingforthelight wrote: »

Hi,

Please don't bite my head off....

I have 3 settled defaults and 2 current/outstanding defaulted accounts for approx £1200 each. I am currently paying nothing towards them. No interest or charges are accruing.

I plan to pay them off in next March, 2016 but am currently paying nothing at all.

Will it improve my credit rating, even by a small margin, if I have a payment arrangement set up. Does it look slightly better with an 'AP' in place?

Or shall I just forget it until Im ready to settle next March?

Thanks

Your credit file is screwed. Defaults whether settled or not look bad. Payment arrangements show willingness to pay but are still bad. HOW bad depends on their creditor and their own personal lending policies, so it's impossible to say. If it were me and the creditors aren't hassling you, I'd wait and settle. You can negotiate full and final settlements and potentially end up paying less anyway. With a payment arrangement they may start adding charges. Creditors are sneaky like that once they think you have money.

lookingforthelight

Thanks.

March is bonus time.
Not being hassled currently.

Think i'll wait till march unless they start 'turning the heat up'.