Debt repayment/settlement advice needed

3catsink

Hi,

I am new here and I would really appreciate some advice on the best way to pay off my debts which I defaulted on in 2015. My debts are as follows:

- £8k with Restons Solicitors which I am currently paying off a monthly amount according to a CCJ and repayment schedule. They obtained a Charging Order on my property.
- £9k with Cabots which I currently pay off a token amount off each month. Cabot has written to me offering me a settlement. Unfortunately I cannot take up the offer yet but I should be in a position in the new year.
- £10k with Nationwide. Nationwide obtained a CCJ and a Charging Order. I'm not currently paying this off.
- £12k with Barclaycard. I'm not currently paying this off.

My aim is to be debt free within 3 years time so that I can secure a new mortgage and move house.

My current plan is to follow the snowball method; to negotiate a settlement with Cabot in the new year to clear their debt. Then to increase my payment to Restons to the maximum I can afford to clear it within 12 months. Then to pay off Nationwide in the following 12 months. After which, the Barclaycard debt will become Statue Barred so maybe I can avoid paying this all together or negotiating a settlement too.

My questions are:
- Does this sound like a logical plan or is there a better way?
- Is it likely that I could also negotiate a settlement with Restons, Nationwide and/or Barclaycard?
- When the debts are paid off or a settlement is reached, do I need to get the companies to do anything to remove the CCjs/Charging Orders/clean up my credit file?

Your help is much appreciated!

sourcrates

3catsink wrote: »

- When the debts are paid off or a settlement is reached, do I need to get the companies to do anything to remove the CCjs/Charging Orders/clean up my credit file?

Snow ball method is a proven path to take.


However you cannot remove a CCJ unless you :

(A) Pay the debt within 30 days of judgment
or
(B) obtain a successfull set aside

otherwise you are stuck with it for 6 years, the CO`s will be removed when the debt is repaid in full, the accounts with judgements may accept an offer to settle, but why should they when they have a court order ?


Barclaycard may do a deal, but better to wait until its gone to a debt collector first, as they have much more discretion.

Karonher

Are you willing to risk a CCJ from Barclaycard just as you think you can apply for a new mortgage?

3catsink

Thank you for taking the time to reply.

You are right, the CCJs will be on my record, but at least once paid I can ask for them to me marked as settled which should hopefully improve my credit score. The nationwide one will drop off prior to moving.

I assumed that those with a CCJ wont negotiate a settlement but wondered whether I was right or whether anyone has any success here.

Keen to avoid the Barclaycard turning into a CCJ. Would they write to me prior to that happening so I can arrange a repayment plan? If they do transfer it to a debt collector and they start hounding me I'd also arrange a repayment plan and try to settle at a later date.

Cheers!

Willing2Learn

3catsink wrote: »

You are right, the CCJs will be on my record, but at least once paid I can ask for them to me marked as settled which should hopefully improve my credit score. The nationwide one will drop off prior to moving.

A satisfied CCJ still represents an account where the credit agreement was broken, and the relation between creditor and debtor has also irretrievably broken down. I don't think a satisfied CCJ is looked upon in a more positive light by a prospective lender. It may change your imaginary 'credit score' but a CCJ on your file, is negative data and quite simply severely impacts negatively on your available credit options.

3catsink wrote: »

I assumed that those with a CCJ wont negotiate a settlement but wondered whether I was right or whether anyone has any success here.

The problem with your plan is that the CCJs trash your credit file. If they are partially settled with an negotiated settlement figure, then the CCJ will not be recorded as satisfied.

3catsink wrote: »

Keen to avoid the Barclaycard turning into a CCJ. Would they write to me prior to that happening so I can arrange a repayment plan? If they do transfer it to a debt collector and they start hounding me I'd also arrange a repayment plan and try to settle at a later date.

Why not offer to make token payments so that it does not get to a CCJ?

3catsink

Thanks for the input. So if I understand correctly, the CCJ is going to severely impact my ability to secure a mortgage even after its settled. That's disappointing but I get it. Are there specialist brokers / lenders who may still lend, albeit due to the added risk, at higher interest rate? If they look at affordability/LTV criteria i should look favourably. Plus I've never missed a mortgage payment in 13 years which must count for something.

Is there a better approach to my situation or does what I outlined make sense?

Barclaycard have only been in contact with me once in the last 1.5 years and that was in a letter to tell that some charges/interest had been wrongly applied to my account and were bring credited. Should I wait for them to re-engage or wait for them to pass over to a debt collection firm (where I maybe able to settle) or should I proactively make contact and arrange token payments?

Thank you.

worried_jim

Do anything you can to avoid getting a CCJ, it will be the kiss of death.

Karonher

It seems you are clearly interested in sorting a good mortgage deal so I cant see why you are even risking it by avoiding paying Barclaycard.

3catsink

So you would recommend engaging Barclays and making token payments rather than risk them escalating?

Willing2Learn

Yes, set up scheduled token payments. They may still escalate while you are making token payments, but it reduces the risk.