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Advice on Improving Credit File - I'm clueless!
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BusyBee1983
Posts: 7 Forumite
Hello All
This is my first post, so forgive me if my etiquette is a little off!
Long story short, I have a lot of debt and I'm on a DMP. I have a house with an interest only mortgage £176k, recent valuation at £250k
My DMP is circa £40k and I'm currently paying £340 a month, In about 8-9 months I can increase this hugely to around £900 a month as my husband will be contributing to clear my debt (he's currently clearing his own car loan).
With my creditors, I have defaults registered in early 2013 that I believe will 'drop off' early 2019 (correct me if wrong) and a couple of defaults registered (annoyingly) in 2015 and 2 creditors that show as me late paying constantly.
My questions are thus:
I would like to clear and clean up my credit file so that we can look to potentially move in 4 years. I know this is ambitious but I'd like to know if it is realistic.
How do I best clean my credit file? Should I look to concentrate on clearing the debts that have me as 'late paying' first, followed by the 2015 defaults next so that these accounts become settled and closed? If so, do they still get viewed by credit reference agencies?
Do I look to see if I can release equity to clear the debt as a whole and potentially offer settlements around 60% upwards? I'm unsure about this as I know that I would then be paying interest on the released capital - but it would clear my debt and start my file repair, wouldn't it?
I'm lucky that my DMP with stepchange has ensured that all interest has been stopped.
Any advice is appreciated.
This is my first post, so forgive me if my etiquette is a little off!
Long story short, I have a lot of debt and I'm on a DMP. I have a house with an interest only mortgage £176k, recent valuation at £250k
My DMP is circa £40k and I'm currently paying £340 a month, In about 8-9 months I can increase this hugely to around £900 a month as my husband will be contributing to clear my debt (he's currently clearing his own car loan).
With my creditors, I have defaults registered in early 2013 that I believe will 'drop off' early 2019 (correct me if wrong) and a couple of defaults registered (annoyingly) in 2015 and 2 creditors that show as me late paying constantly.
My questions are thus:
I would like to clear and clean up my credit file so that we can look to potentially move in 4 years. I know this is ambitious but I'd like to know if it is realistic.
How do I best clean my credit file? Should I look to concentrate on clearing the debts that have me as 'late paying' first, followed by the 2015 defaults next so that these accounts become settled and closed? If so, do they still get viewed by credit reference agencies?
Do I look to see if I can release equity to clear the debt as a whole and potentially offer settlements around 60% upwards? I'm unsure about this as I know that I would then be paying interest on the released capital - but it would clear my debt and start my file repair, wouldn't it?
I'm lucky that my DMP with stepchange has ensured that all interest has been stopped.
Any advice is appreciated.
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