Owe 70k, options

Misc11

Hi all,

Long story short, I currently owe about 70k, for various reasons, but to summarise an extremely difficult few years for me. I ended up starting a DMP which StepChange.

Since then, I now earn (recently changed jobs) a lot of money (180k/yr) and I'm trying to get debt free asap so I can get a mortgage.

I complained to the FOS and won all my cases against all my debts - once they are cleared, all adverse data will be removed.

What I currently owe -
Paypal - 750 - Late payments TU/EQ
MBNA CC - 2600 - Default EX/TU/EQ
Virgin CC - 4800 - Late payments EX/TU/EQ
Natwest CC - 10500 - Default EX/TU/EQ
Loan 1 - 16000 - Late payments EX/TU
Loan 2 - 11000 - Default - EX/TU
Loan 3 - 23000 - Default - No CRA data

Experian - EX
TransUnion - TU
Equifax - EQ

I've realised not all creditors are reporting to all credit agencies. For example, Loan 3 isn't reported to any agency since winning my case.

If I were to clear all accounts now reporting to Equifax (Paypal, MBNA CC, Virgin CC, Natwest CC), would I be able to refinance the rest of it by searching through 0% balance transfer/money transfer cards on Equifax eligibility checkers or will I get caught out when they do a hard search? ie do all lenders check all 3 CRAs?

I appreciate this may appear to be a bit 'below the belt' to some, but I am trying to clear my adverse data as quickly as possible to move on with my life. I have some deposit for a house now, which I'd like to keep, refinance bad debt if I can and apply for a mortgage.

Any help much appreciated. 

Sly72

Would be surprised if you can get any 0% balance transfer/money transfer cards. Best let them all default and set up your own DMP, then defaults clear in 6 years time.

Misc11

Thanks however if I clear any debt, that associated debt has all adverse data removed. I do not have to wait 6 years.

sammyjammy

Misc11 said:

Thanks however if I clear any debt, that associated debt has all adverse data removed. I do not have to wait 6 years.

Thats not true, if there is adverse info on an account it will remain until 6 years after the debt is repaid and the account closed, if a default is registered then the account is removed six years after that date whether the debt has been repaid or not.

Misc11

I'm aware of that. However, as I explained in my initial post, I've won cases with the Financial Ombudsman for all debt. Part of the agreement is once an account is settled, all adverse data is removed.

Exodi

Sly72 said:

Would be surprised if you can get any 0% balance transfer/money transfer cards. Best let them all default and set up your own DMP, then defaults clear in 6 years time.

sammyjammy said:

Misc11 said:

Thanks however if I clear any debt, that associated debt has all adverse data removed. I do not have to wait 6 years.

Thats not true, if there is adverse info on an account it will remain until 6 years after the debt is repaid and the account closed, if a default is registered then the account is removed six years after that date whether the debt has been repaid or not.

Did either of you read the OP?

@Misc11 In theory yes, though I'm not sure what you mean by "refinance bad debt if I can and apply for a mortgage".

I'd hope that the intention of 'refinancing' to 0% was to clear the debts quicker and then apply for a mortgage with a clean state, not to think "yes I have a mountain of debt, but it's not a big deal because it's all currently 0% so can I have a mortgage please" - hopefully that's not what you meant?

Misc11

All debt has no interest on it as a result of my FOS case. I'd agree yes 70k is a mountain, however if I pay some of it off, I'd be refinancing about 25-30k. Considering my income, I don't see that as a mountain. It's all relative.

Misc11

To clarify, I'd like to clear all debts reported to equifax, apply for 0% finance via equifax brokers (eligibility checkers) to then clear the remaining defaults and late payment accounts. Those accounts will then have all adverse data removed and I'll have a 'clean slate', albeit with some debt on 0%. 

My main question is, if I have a high eligibility after clearing those equifax accounts,  subsequently apply for a 0% card, will the hard credit check be on all 3 CRAs? If so obviously I'd fail as I'd still have late payments and defaults showing on Experian and TransUnion 

On-the-coast

I don't know the answer to the question you've posed - and TBH i suspect no-one will really be able to see inside the algorithms of the card companies - which are independant of credit rating organisations...
How long do the current debts/FOS cleared (which i don't really understand) stay at 0%?
What are your current outgoings?  if i were you / with your salary, I'd be inclined to live frugally for 6 months or so, pay off all my debts (using salary plus saved deposit), then use the next 6 months to build up a house deposit.

Misc11

On-the-coast said:

I don't know the answer to the question you've posed - and TBH i suspect no-one will really be able to see inside the algorithms of the card companies - which are independant of credit rating organisations...
How long do the current debts/FOS cleared (which i don't really understand) stay at 0%?
What are your current outgoings?  if i were you / with your salary, I'd be inclined to live frugally for 6 months or so, pay off all my debts (using salary plus saved deposit), then use the next 6 months to build up a house deposit.

Thanks, you do speak alot of sense. 

All debt is 0%, forever. I'm clearing debt at 2k/month. After all life out goings I'm saving 1.5k/month.

Brie

If you are saving 1.5k a month you must have a small mountain or at least a reasonable hill of cash stashed away.  Why not use that to clear some of the debt?  Personally I'd start with the littlest and work my way up from there.