Clearing debts

Madhouse1912

I'm now debt free but my husband still has debts of around 5k and is in a debt management plan. We currently rent but would love to buy in the future. What would be the best way of clearing his debts quickly so that we can start repairing his credit file, currently has defaults. Would it be silly for me to take out a loan to pay it off? Any advice would be much appreciated.

DCFC79

Madhouse1912 wrote: »

I'm now debt free but my husband still has debts of around 5k and is in a debt management plan. We currently rent but would love to buy in the future. What would be the best way of clearing his debts quickly so that we can start repairing his credit file, currently has defaults. Would it be silly for me to take out a loan to pay it off? Any advice would be much appreciated.

Why take out a loan for his debts, surely his debts so his problem.

He could contact each 1 and make an offer to settle.

Uhtred_Ragnarsson

Madhouse1912 wrote: »

I'm now debt free but my husband still has debts of around 5k and is in a debt management plan. We currently rent but would love to buy in the future. What would be the best way of clearing his debts quickly so that we can start repairing his credit file, currently has defaults. Would it be silly for me to take out a loan to pay it off? Any advice would be much appreciated.

To be blunt (Vikings are a little bit like that ), yes, it would be really silly to take a loan to pay off your husband's debts. It may seem the easy way out but you actually aren't paying the debt off, just transferring it to yourself.

You say you are now debt free which strongly suggests you must have had your own debt issues at one stage. Do you really want to start on the slippery slope of debt again?

I don't have the knowledge of some on here but in terms of defaults, I'm reasonably sure they come off your record 6 years after the default is issued. So, depending on when that happened, taking a loan to pay your husband's debt wouldn't clear his credit record up any faster. Happy to be corrected on this naturally.

Good luck.

sourcrates

Uhtred_Ragnarsson wrote: »

I don't have the knowledge of some on here but in terms of defaults, I'm reasonably sure they come off your record 6 years after the default is issued. So, depending on when that happened, taking a loan to pay your husband's debt wouldn't clear his credit record up any faster. Happy to be corrected on this naturally.

Good luck.

That is correct !!

Does not matter if you pay the debts off, partially settle them, or ignore them completely, the defaults will still show for 6 years whatever you do.

Taking out more debt to repay existing debt is only beneficial to the banks your borrowing from, certainly not for you.

You will never pay off any recurring credit agreement by just making min payments, you either need to seriously up your income, or enter some kind of debt management, where interest is stopped.