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default problems

Hi would anyone be able to advise, i got into financial problems with debts of £10,000 i was unable to meet the monthly payment, thefore i went for help to a company caleed PayPlan,they made arrangment with my creditors and i was put on a payment plan which i could afford. Now the poblem is i have applied for a morgage and was turned down as there are a number of defaults on my credit report,i would have thought as long as i was paying something to my creditors it wouldnt show as a default. I am now worried sick even more than i was before i went on a the payment plan, should i try to get one of those high interest loans (if i can) pay off my debts and come of the payment plan. Please someone help me.

Comments

  • Firstly regardless of the fact that if the debts were paid off you have been issued a default notice as you were unable to honour the original contract and repayment schedule with the creditors ( before Payplan got involved) the creditors would of issued default notice to show that your broke your original agreement to pay them back.

    These defaults will stay on your credit file for a period of 6 years from the date of default, the only thing that will change on them if you were to pay off what you owed would be the fact that they would be marked as “satisfied” , however they will still shows as defaulted accounts.

    With regards to obtaining more credit this is the last thing you want to do, carry on paying what you can afford via Payplan, you credit rating will be damaged now regardless of payments or settlements you make to the original creditors
    :rolleyes: It’s hard enough remembering my opinions - without remembering my reasons for them :rolleyes:
  • bluezone
    bluezone Posts: 772 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Hello there,

    Why dont you log on to equifax and get your credit rating and score, that way you may be able to figure out why you were turned down.
    One of the codes against my hubbies report said VA or was it PA - anywa they mean voluntary arraangement or payment arangement.

    Just a thought - I hope it helps
    😁
  • Xbigman
    Xbigman Posts: 3,922 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    To echo the first reply, you won't get a mortgage whilst on any debt repayment plan. If you can't meet you're current commitments why would anybody give you a mortgage? And how are you going to pay the deposit, legal fees and moving costs? Sorry but you need to give up the mortgage idea until your debts are cleared.
    Regards




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