Outstanding loan

scoops82

Hi


My partner has and old debt with Welcome Finance, I am not entirely sure how old this debt is but its at least 5 + years an maybe 10. The amount owing is about £3,500.


There is no longer nay interest charged to the account and she pays back what she can afford each month, between £10-50. It will take some time for the debt to be repaid.


How long does a outstanding debt stay on your file for? Will it only be removed once the debt has been settled?


I imagine her credit score to be pretty poor but she has recently managed to secure a credit card from Vanquest which she uses to buy petrol and then repays it every month in the hope this will improve her credit rating.


Just curious as one day I would like to add her to the mortgage but getting a joint one currently would be at a very high interest rate.


Any thought/advice is welcome.


Thanks
S

DCFC79

2 points

1 the debt will go either once its been paid off or your wife stops paying (you run the risk of debt collectors contacting you) the £10-50 and 6 years from that date the debt is statue barred.

2 forget what the credit score/rating is, its a figure given to you by the reference agencies on how they perceive your credit file to be, lenders don't see the rating just you.

scoops82

As expected thanks - do you know the name of an agreement that she has. She isn't sure. Is it a DMP, IVO or something else?
Basically she is just no longer paying interest and there is no definite agreement in place, they just task for an up to date I&E analysis every 6-12 months.

DCFC79

scoops82 wrote: »

As expected thanks - do you know the name of an agreement that she has. She isn't sure. Is it a DMP, IVO or something else?
Basically she is just no longer paying interest and there is no definite agreement in place, they just task for an up to date I&E analysis every 6-12 months.

Could be either to be honest but Im not as knowledgeable as others on here, you mean an IVA.

jellie

Is the debt still with Welcome? If so, it won't be on her credit file as they stopped reporting some years ago.

If it is still with Welcome, are you able to offer an amount to settle? This would be better than having it sold on.