What do i do??

immortalbeast

Hi,

I have quite a bit of debt that i have stupidly run up in the last 4 years. I have a house that will be sold very soon and stand to make £20k

I have worked out that this would be just enough to pay all my debts off at a reduced 40%. I have seen on here and spoken to a few people in the know and it seems companies would most probably take 40% as a full and final settlement.

My questions are :

1. Will it look any better on my credit file if i pay the debts off in full (will take much longer) rather than paying them at the reduced 40% (as that will say reduced settlement on my credit file so i have been told)?
2. Am i likely to be able to get a mortgage approximately 12 months after paying all this off at the reduced amount (i wouldnt take any more credit on or go into debt again)? And if so what sort of APR approximately would i be looking at paying for a normal repayment mortgage?
3. Will my credit rating be shot no matter what i do?
4. Is there any way i could get a class A credit rating again , and if so how?

Many Thanks in advance for anybody that replies.

Matt

chevalier

1) not sure if they will take a settlement figure if you are not currently in difficulties paying them back
2) don't know,
3)If you default on your agreements then yes it will affect your credit rating. Not sure if full and final settlements do
4) Do you know what your rating is now? Have a look for free by getting your experien credit file online, by going via quidco.com. (Just have to remember to cancel the direct debit before the end of the month)

chev

immortalbeast

chevalier wrote: »

1) not sure if they will take a settlement figure if you are not currently in difficulties paying them back
2) don't know,
3)If you default on your agreements then yes it will affect your credit rating. Not sure if full and final settlements do
4) Do you know what your rating is now? Have a look for free by getting your experien credit file online, by going via quidco.com. (Just have to remember to cancel the direct debit before the end of the month)

chev

Hi i have been in difficulty with payments for the last 2 years. Just buried my head in the sand and now need to sort it out. My credit rating is absolutely shot. My credit score is rock bottom as is my rating.

Matt

immortalbeast

Anyone ????

Bunnyinthelights

Sorry I can't answer your questions but have you called the CAB, they may be able to help.

taxi73

I would imagine that your credit rating will be shot for at least 6 years..and mortgage lenders are clamping down on taking a risk on people that have had problems paying debt...as for partial settlement i don't know the answer but a phonecall to cab may answer your questions.

immortalbeast

If paying the debts in full and paying them partially gives me the same crap credit rating then i would be a fool to pay it off in full. i would be beter just paying the least i can and then moving on with my life without relying on credit.

Matt