Defaults

mb1981

I have recently had a default put on my credit report from marbles and possibly have another from hsbc next month, I called vanquish to today to try stop another default as my score has dropped from 900 to 233 with only one default so far so it’s wiped out everything I built up which isn’t great. What’s the best thing for me to do please I understand this will take 6 years to come off and won’t have access to credit till then probably but as I will have at least 2 on my report what’s the best thing to do financially please 

Rob5342

Could you explain a bit more about your situation, why have you missed the payments that resulted in the defaults? If you are struggling to repay them then defaults can be a good thing in the context of a debt management plan.

fatbelly

I agree with Rob. Trying to build your 'score' while not paying your debts seems doomed to fail.

With multiple defaults the way forward is to let everything default and use a debt strategy like a debt management plan, DRO, or whatever is suited to your circumstances, to get debt-free

mb1981

So I missed the payments on marbles to let it default ( not realising how much it effected my credit). then hsbc minimum payments are £400 a month missed payments on that and default next month going on credit report, after they are defaulted am I best getting them paid in full quickly or let it run its course? I am doing my own DMP and have arranged payments with other creditors it’s just these 2 what’s the best going forward to get back on track

sourcrates

Defaults should be expected if you are not paying the contractual payments, try are concentrate your mind on paying off the debts affordably, and let time heal your credit file.

RAS

mb1981 said:

So I missed the payments on marbles to let it default ( not realising how much it effected my credit). then hsbc minimum payments are £400 a month missed payments on that and default next month going on credit report, after they are defaulted am I best getting them paid in full quickly or let it run its course? I am doing my own DMP and have arranged payments with other creditors it’s just these 2 what’s the best going forward to get back on track

You need to check all 3 credit records. How are the other creditors with who you've arranged payments reporting the situation on your credit records? AP markers are nearly as bad as defaults.

Looking at the future, these defaults will "fall off" your credit record in 6 years even if you still owe money.
The AP markers will continue to damage your credit record for 6 years after the debt is paid off.

Have you used the time since you started your debt journey to set up an emergency fund with a good cushion given you won't have access to credit for a while? And do you have an element in your SOA for a continuing contribution to your emergency fund?

Rob5342

mb1981 said:

So I missed the payments on marbles to let it default ( not realising how much it effected my credit). then hsbc minimum payments are £400 a month missed payments on that and default next month going on credit report, after they are defaulted am I best getting them paid in full quickly or let it run its course? I am doing my own DMP and have arranged payments with other creditors it’s just these 2 what’s the best going forward to get back on track

Once defaulted there is no interest and the default will drop off after 6 yesrs. You should pay them off at a rate you can afford that leaves you enough money to cover everything else. 

summerb64

If you’ve decided to start your own managed debt management plan, why on earth are you worried about your credit score? It’s obviously going to be hammered for 6 years. 

RAS

Let's hope the OP now understands how to limit the damage to 6 years and can build a good emergency fund whilst getting the rest to default.