Getting

Kinrao

Thread Title Should Have Been "Getting Sorted" Oop




Hi guys,


Hoping to get some help.


After a life of reckless spending I was diagnosed a couple of months ago with adult ADD. The medication has helped enormously and I'm now in control of where I need to be.


Over credit cards and overdraft I owe 40K but my credit file is pretty shot due to me being up to the hilt on my available credit and two cards being defaulted at 6 months.


My aim would be to repair the credit file and then remortgage but I am faced with an immediate decision.


My credit cards are looking for me to pay what would be a really tough amount over four months to reduce the arrears or go onto a repayment plan. If I went onto the latter;


a) Would a repayment plan kill my credit rating over the period I was repaying it?


b) Is it better to just bite the bullet and try to get back on track with the cards to try and secure the remortgage?


Over the years I've admired the discipline of people on this forum to transform their lives, now I feel I have the tools to do the same.


Any advice is very much appreciated.

downhillfast

Kinrao wrote: »

Thread Title Should Have Been "Getting Sorted" Oop




Hi guys,


Hoping to get some help.


After a life of reckless spending I was diagnosed a couple of months ago with adult ADD. The medication has helped enormously and I'm now in control of where I need to be.


Over credit cards and overdraft I owe 40K but my credit file is pretty shot due to me being up to the hilt on my available credit and two cards being defaulted at 6 months.


My aim would be to repair the credit file and then remortgage but I am faced with an immediate decision.


My credit cards are looking for me to pay what would be a really tough amount over four months to reduce the arrears or go onto a repayment plan. If I went onto the latter;


a) Would a repayment plan kill my credit rating over the period I was repaying it?


b) Is it better to just bite the bullet and try to get back on track with the cards to try and secure the remortgage?


Over the years I've admired the discipline of people on this forum to transform their lives, now I feel I have the tools to do the same.


Any advice is very much appreciated.

If you have 2 defaults on your credit file then until 6 years from the default date your credit file will be a bit shot. Your priority here should be to reduce and eliminate your debt rather than to repair your credit 'rating'... this in turn will actually do the biggest thing to improve your credit worthiness anyway! You are probably going to have to accept that a remortgage may not be possible for a little while...

If you fill in an SOA and post it here then I'm sure you will receive a lot of help in how to best manage your situation... :beer:

asparagus1968

http://www.stoozing.com/calculator/soa.php


here is the link to the SOA for you.


could you rent out a room in your home?tax free up to a set amount

andyfromotley

Hi,

a remortgage is pretty unlikely with recent defaults on your credit history, particularly if you are after extra borrowing. if you are just after a better rate then you can product switch with most lenders without a credit check. Some lenders will lend with defaults after a certain period but iirc its about 3 years old abd the deals arent great.

A repayment plan will indeed wreck your credit history, as have the current defaults.

You may find it veru useful to talk to Stepchange, national debtline or christiians against poverty all of whom give great FREE advice. (never pay for debt advice)