Nationwide loans confused

sim2335

I am confused hopefully you can help.

I am on a payment holiday with nationwide for 2 personal loans , ending this month.

I called them to clear the arrears I had before the payment hoilday, they said they can’t see this at the momment (there’s no defaults or payment plans)

They said arrears will stay on my credit file for 6 years, and once payment hoidlay ends they can rewrite the loan

So is there any point clearing the arrears?, once payment hoidlays finsihes, or when they rewrite the loan will that automatically clear the arrears?

I want to do what’s best for my credit file, if clearing arrears doesn’t make a difference then no point, could use that money to other debts.

Thanks

jonesMUFCforever

Yes clear the arrears - it will save you loads in interest.
Covid 19 rules regarding repayment holidays have been 'bolted' onto computer systems in a rush - it could be that the person you spoke to could not see another part of the system.

Agreed payment holidays until October 2020 will not show on your credit files as arrears - anything agreed afterwards will.

sim2335

My arrears were before the payment hoilday 

there offering to rewrite the loan and make it longer so me paying off old arrears won’t make any diffence at all will it?

jonesMUFCforever

In that case they may well have been reported to the CRA's - have you checked?
It is still in your interest to make up the arrears - it will make your credit report look better going forward - but up to you.

macman

sim2335 said:

My arrears were before the payment hoilday 

there offering to rewrite the loan and make it longer so me paying off old arrears won’t make any diffence at all will it?

Of course they are, that way they earn more interest and the total cost of your loan goes up.