What to do with my accounts

mb1981

I’m looking for advice, I have 3 defaults that are recent and I have set up a monthly payment with who they sold my accounts too, my question is I also have another credit card which I have been paying off which isn’t behind and up to date. My credit score is 429 is it worth continuing paying ones not in default to boost my score and get my credit sorted or let it all go to default the thing is I’m worried about the future if I needed my car repaired or something in an emergency? Also I think the credit card company put a default on then also the company they sold it too can they do this? If I set up a monthly payment with the debt company? 

sourcrates

Your credit score is not a a real thing, and is only seen by you.

Lenders use their own scoring system to decide whether to lend to you or not.

Your credit history won`t improve whilst you have defaults, so your priority should be getting rid of the debt, and not worry too much about your fictitious credit score.

Emergencies should be budgeted for on a monthly basis, save as much as you can so you have a fund to use in response to such things, instead of a reliance on credit.

Accounts only default once, and when a debt is sold its common for there to be two entries on your file for the same debt, one from the original creditor, one from the new owner, as long as the default date is the same on both, all is well, and both will drop off your file on the 6th anniversary.

mb1981

Am I best continuing to pay what I can to the marks and spenders credit card as paying around £200 a month to keep it from having issues or because of the other defaults let that go too? 

sourcrates

You are best off applying a strategy to all of your debts, and sticking with that strategy until completion.

Keeping open one line of credit may just be the catalyst that leads you back into debt again, and £200 a month is a fair old lot of money to be giving them.

EssexHebridean

I would urge you to start by working out a viable budget which includes saving for an emergency fund. Remember why the cards have defaulted - because the debts on them were too high for you to afford to continue to pay, yes? If so, actively planning to need to use more credit in the future is really an ideal mindset - outside of “good debt” like a mortgage, or a loan for education which will lead to a higher salary for example. You need to budget for car repairs, for replacement white goods as and when needed, and indeed for a replacement car when the time comes. 

Sit down and complete your SOA if you haven’t already (statement of affairs - the link to one of the calculators we recommend is in my signature below), then stop using the remaining card, set aside the money you are currently paying to it towards fast-building an EF until such time as it defaults, then treat all debts the same, and actually break the credit-cycle once and for all.