Get debt free or save

dobbollah

Ok things have gone well debt wise the last 6 months, I'm currently down to 2 accounts left and i'm paying NO interest on either of them...


So I could continue the monthly payments and 18 months be out of debt and save during that time. My account offers a 6% if I tie money up and save for 12 months.

I know I shouldn't be too lead by credit agencies but having just signed up to 'clearscore' the 2 accounts in question are shown as seriously in arrears (neither defaulted). Both are shown AR - arrangement to pay.

in 2 or 3 years time I might be looking to extend at home and want my credit file to be in good order should I need that option of loan to top up the funds ( i intend to save the majority)

if it takes 18 months to pay it off will i have that negativity of 'serious arrears' for 6 years from the point of completion...well thats not good, or it seems bad to me

sourcrates

Afraid so, AP markers suck in that respect, much better to get defaulted first, but that's bye the bye now.
The only thing that could of worked in your favour, should you of needed to borrow again, is that the further back in time bad information is, the less effect it will have on future decision making, the AP markers may damage your chances in that respect.

dobbollah

so in that respect the sooner they are satisfied the better....?

andyfromotley

yes, the sooner the better.

dobbollah

that answers the question.....thanks as always :-)