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Pay extra on defaults or save?
Dannyboy3028
Posts: 1 Newbie
Good afternoon,
Unfortunately a few years ago I got myself into a lot of trouble with credit card debt and loan debt, resulting in 4 defaults that are now just under 3 years old. I have successfully paid off and closed 2 of the accounts but currently have £17k left to pay. I am in the lucky position to be able to pay money towards these as well as extra each month. I would hope to buy a house with my partner, obviously my credit score is poor but slowly improving. I was just wondering whether it would be more beneficial to save money towards the deposit or pay off these defaults with the extra I’d save?
Unfortunately a few years ago I got myself into a lot of trouble with credit card debt and loan debt, resulting in 4 defaults that are now just under 3 years old. I have successfully paid off and closed 2 of the accounts but currently have £17k left to pay. I am in the lucky position to be able to pay money towards these as well as extra each month. I would hope to buy a house with my partner, obviously my credit score is poor but slowly improving. I was just wondering whether it would be more beneficial to save money towards the deposit or pay off these defaults with the extra I’d save?
Many thanks.
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Comments
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You need to decide what you think enforcement action is going to be to recover the money. If you've already set up a payment plan and no additional entries are being added to your credit record then continue with the agreement. 4 defaults just short of 3 years old are likely to see you struggle to get a mortgage for at least another year without being heavily penalised if you can find one.
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