Help please if possible many thanks

helppleasethankyou1000

Hi all - I am new to this site and would like some advice if possible. I will try to set to provide the headline and my question:

Due to a gambling addiction that has recently been acted on I have unsecured credit card debt. 

I want to pay it all back but need the interest frozen to enable to do so. Min payments have been met so far. 

My issue is I can’t have my credit file impacted for 6 years due to my job.

I have spoken to some of my creditors and one has said they can freeze interest and it won’t impact my credit file .

Now my question is , can you share your experiences of a direct creditor payment agreement such as this where you credit file is not impacted in a major way? The internet has different views and so do the creditors. 

Struggling to understand the facts of what a direct arrangement like this wouls Mean to my credit file / rating . Many thanks 

Brie

As far as I'm aware the only way your credit report won't be effected is by continuing to pay the minimum on everything and continue to have interest charged.  If interest is stopped then those debts will be noted as having payment agreement.  You might ask for a temporary stop of interest which would be a blip on the report but possibly not enough of one to affect your employment.  And the blip will retreat with time.

Perhaps finding more money to keep things ticking along would be the best answer.  And that would be by either increasing your income (part time job on weekends) or decreasing your expenditure.  Selling excess stuff is also a good way to get more to pay towards everything. 

If you fill out the statement of accounts (SOA) and post it back here people will be able to help spot ways to cut your expenses and help you clear the backlog of debt.   

helppleasethankyou1000

Thank you Brie - do you know how an arrangement will impact the file, is this the 6 year type impact or different? 

Does showing an arrangement have a listing impact or a mortgage impact for example? Trying to understand the different impacts is difficult- thanks 

MattMattMattUK

helppleasethankyou1000 said:

Hi all - I am new to this site and would like some advice if possible. I will try to set to provide the headline and my question:

Due to a gambling addiction that has recently been acted on I have unsecured credit card debt. 

I want to pay it all back but need the interest frozen to enable to do so. Min payments have been met so far. 

My issue is I can’t have my credit file impacted for 6 years due to my job.

I have spoken to some of my creditors and one has said they can freeze interest and it won’t impact my credit file .

Now my question is , can you share your experiences of a direct creditor payment agreement such as this where you credit file is not impacted in a major way? The internet has different views and so do the creditors. 

Struggling to understand the facts of what a direct arrangement like this wouls Mean to my credit file / rating . Many thanks 

What are the actual restrictions based on your job? These can vary wildly from only having issue with bankruptcy, CCJs, some have issues with debt management, sometimes that includes payments plans individually negotiated, other times it only matters if it is a IVA etc. though to at the extreme end employers can have issues with financial distress (struggling with debts) or in the case of security services even unsecured debt above a certain amount can be an issue.

helppleasethankyou1000 said:

Thank you Brie - do you know how an arrangement will impact the file, is this the 6 year type impact or different? 

Does showing an arrangement have a listing impact or a mortgage impact for example? Trying to understand the different impacts is difficult- thanks 

Everything on a credit file is there for six years (in England and Wales), so there should be more specific guidance than just "impact the file", if you can let us know what it actually says then we should be able to advise. 

helppleasethankyou1000 said:

Does showing an arrangement have a listing impact or a mortgage impact for example? Trying to understand the different impacts is difficult- thanks 

Yes it would impact a mortgage, depending on the specifics one might need to go with an adverse credit lender, or one might be refused a new mortgage outright.

Also to add, have you had professional help with your gambling and blocked yourself from all gambling (in the UK).

As you mention credit card debt were you gambling on foreign gambling sites that bypass UK restrictions?

helppleasethankyou1000

Thanks Matt.

My employment contract wording is quite open to all arrangements, though I believe it’s more focused on IVA, CCJ rather than a standard creditor arrangements. But I am not certain at this point.

Had anyone been approved a mortgage where they have entered into an agreement (standard one not an Iva etc). This part is key for me and my decision.

re gambling , yes lots of barriers now in place thank you. I was able to take the cash (into a bank account) and then bet on ‘normal’ sites.

sourcrates

Anything other than contractual payments will see some marker or other added to your credit file.

There is no escaping that, no matter what some call handler may have led you to believe.

Creditor arranged payments, or any other arrangement, will result in AP (arrangement to pay) markers, prolonged arrangements may see defaults added in time.

Bad credit mortgages are still possible, you just need the right broker.

As for your contract of employment, usually its judgements and insolvency that are to be avoided, but you would need to check the exact wording to be certain.

MattMattMattUK

helppleasethankyou1000 said:

Thanks Matt.

My employment contract wording is quite open to all arrangements, though I believe it’s more focused on IVA, CCJ rather than a standard creditor arrangements. But I am not certain at this point.

That may mean that they take issue with "arrangement to pay" as well as more formal choices, but it would really depend on the specifics and HR. 

helppleasethankyou1000 said:

Had anyone been approved a mortgage where they have entered into an agreement (standard one not an Iva etc). This part is key for me and my decision.

Some people will have, some will not. However are you talking a new mortgage, in which case the answer is almost certainly no, or are you talking a remortgage (rate switch) in which case there will be many more yes answer.

helppleasethankyou1000 said:

re gambling , yes lots of barriers now in place thank you. I was able to take the cash (into a bank account) and then bet on ‘normal’ sites.

That is good, give yourself as many safety nets as you possibly can.

Would you be willing to post an SOA to give people a wider picture, and potentially other options if the arrangement to pay and/or IVA etc. are not viable for employment reasons. 
https://www.lemonfool.co.uk/financecalculators/soa.php

RAS

A couple of things.

Is the issue that you want to get a mortgage in the next 6 years? Or that you will need to remortgage?

And you need to
a) know exactly what your employment contract says
b) find out if either your union or professional body are able to make an anonymous enquiry about your situation, or whether your employer provides some third party service.

It's a while ago but after 2008 a lot of people in the banking and finance industries lost their jobs, got demoted, got into financial difficulties etc, and a good number came here for advice. 

Of all those, I recall only one who lost their job. Some entered supervised debt management, some went bankrupt on the advice of their employer's debt advisors. One person going BR ignored the advice to connect with their employer who first found when contacted by their OR, and he was fired over the phone, with immediate effect.

Not sure how the current situation works but you need to explore carefully and you may be OK.

Brie

The number of debts with minimum payments are also likely to affect a mortgage application.  Moreso in my opinion than a 3 month interest break which allows you to get a bit ahead, particularly if the application is then in a couple of years time.  The more these things fade into the past the less of an issue they will be.  Others may have a different view of course.  

enthusiasticsaver

Most arrangements to pay stay on your file long after a default so asking for interest to be stopped would normally result in that.  That could be an issue if you intend applying for a mortgage as would having large amounts of unsecured debt. Most employers are ok with DMPs which is an informal debt arrangement where you default, interest is stopped  and you pay according to affordability until the debt is gone. The defaults however stay on your file 6 years.