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Paying it off

4 replies 421 views
estrellagestrellag Forumite
1 posts
MoneySaving Newbie
Hi everyone! 
This is my first post! I have been able to attain a loan to pay off my credit card debt finally..
I would love to know if it is best to pay off all $12,000 as soon as possible and if it will lower my credit score. It is already in the poor range unfortunately.

Thanks for the comments in advance!

Replies

  • edited 24 February at 7:50AM
    Willing2LearnWilling2Learn Forumite
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    Seventh Anniversary 1,000 Posts Name Dropper Photogenic
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    edited 24 February at 7:50AM
    Hi,
    I just wanted to say you have to be very careful with your consolidation loan.  Many people fall into the trap of doubling their debt with a consolidation loan.  This happens because they have cleared their credit card debt, then start spending on the card again as it feels like new credit.  It just leads to more trouble down the road!!

    As far as your score is concerned.  This is a UK-based site.   The way you use your credit score works differently over on the USA.  :)
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • SPENNER_2SPENNER_2 Forumite
    1 posts
    First Post
    MoneySaving Newbie
    I wonder if anyone has any advice please . I got into trouble with my credit cards as I was unable to pay for a short time. My debts were sold to link financial and pra group - can you tell me the best way to deal with these companies ? My finances have improved massively recently and I will have two lump sums to pay a lot of the money back in a couple of months but need some advice on dealing with them now please ? Thanks in advance
  • edited 24 February at 12:23PM
    Willing2LearnWilling2Learn Forumite
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    Seventh Anniversary 1,000 Posts Name Dropper Photogenic
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    edited 24 February at 12:23PM
    SPENNER_2 said:
    I wonder if anyone has any advice please . I got into trouble with my credit cards as I was unable to pay for a short time. My debts were sold to link financial and pra group - can you tell me the best way to deal with these companies ? My finances have improved massively recently and I will have two lump sums to pay a lot of the money back in a couple of months but need some advice on dealing with them now please ? Thanks in advance
    If it is a definite two months before you receive your lumpsums, and assuming that you acknowledge the accounts are yours, then if it was me, I'd just send holding letters to both Link and PRA, asking them to freeze action whilst you 'seek advice'.  If the accounts are particularly old, then I would submit CCA requests instead, to check whether Link and PRA are in possession of compliant paperwork.  :)
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • sourcratessourcrates Forumite, Board Guide
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    You don`t need to deal with them now, wait until you have the money, then make them an offer.

    Link and PRA will just run through their standard range of letters with you anyway, ask for CCA`s if you wish, that will waste a few months of their time.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
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