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Old debt settle or will it affect credit
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Missmember
Posts: 2 Newbie
Hi
just after some advice
7 years ago I lost my job and fell behind on payments this was noted on my account as a default anyway I have been paying back what I can afford.
just after some advice
7 years ago I lost my job and fell behind on payments this was noted on my account as a default anyway I have been paying back what I can afford.
The debt is now down to 6k anyway they have offered me a settlement figure which is 2000 I want to pay this off and have some inheritance due of around 2500 - anyway if I settle the account would it re appear on my credit file as settle as I now have a good rating
I want to get a mortgage shortly so while it’s not showing do I keep paying low amounts or take the offer
I want to get a mortgage shortly so while it’s not showing do I keep paying low amounts or take the offer
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Comments
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It won't reappear on your files, but settling it means you won't have to declare it on your mortgage application.0
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The finance company concerned will never ever forget.0
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What I have learned since joining this forum is that if you have debt and savings (or an inheritance) that would enable you to pay off debts, then it's always best to pay off debts. That's what I'd do in your position. I'd take the offer so I could be debt free.
Thanks to advice from people on this forum (not directly to me but what I've picked up over the last few years) I'm now debt free. I do have some savings now - not a lot but just being able to save regularly feels like a great achievement to me.
Credit scores and ratings are never seen by lenders, btw but lenders are able to check your credit history. Even though it's been 7 years since your default, there must be some indication somewhere on your credit report that you are paying low amounts. Lenders will want to know why that is. Even if there isn't any record, mortgage lenders will ask questions about the debt.
You've got the opportunity to pay it all off. Why would you let things drag on?Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.0 -
a default should only appear on a credit file for 6 years, so depending on dates of falling behind payment it should not be showing on your file if over 6 years.
if they have offered £2000 to settle, be cheeky and say your a bit short of cash but could scrape £1500 together - you never know0
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