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New guy needs loads of help

Bane84
Bane84 Posts: 52 Forumite
Seventh Anniversary 10 Posts Name Dropper
in Debt-free wannabe
A few years ago I was in a decent job and had various credit out, i was paying them back and my credit score was excellent. Forward 4 years and i find myself in a terrible predicament. I lost my job, and fell behind on my payments, not being in this situation before ever i ignored them and the calls and the letters. I fell futher into debt when i took a credit card out to pay off debts and was even tempted by PDL. Now, the good news. I found a new job after a real struggle, a better job, with more security I hope.

I have currently the following debts

£880 Halifax card ( sold to debt collectors)
£1000 OD ( sold as above)
and about 400 in vaious others.

They have all stopped chasing me and letters have stopped, after a look at my credit report i have about 3 or 4 defaults against me.

Now, I am in no way insinuating i shouldn't pay. But I am also scared of losing money and giving it back when they are not asking for it.

I have currently saved up, 4k in three months after serious savings,
I am currently looking at saving up for a home, im hoping to get between 10 -13k before year is out.

What do you guys suggest is the best way of doing this?

I am completly useless when it comes to finance, money, investing ect. any help would be greatly appreciated. I know if i started to budget i could save more but just don't know where from!

Ta.
“Oh, so you think darkness is your ally? But you merely adopted the dark. I was born in it, molded by it. I didn’t see the light until I was already a man, by then to me it was only blinding. The shadows betray you because they belong to me.”
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Comments

  • tallyhoh
    tallyhoh Posts: 2,318 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    pay your debts off ASAP as you have the money. I believe they will be marked as such on your credit reports which will help when you apply for a mortgage.
    Tallyhoh! Stopped Smoking October 2000. Saved £29382.50 so far!
  • Bane84
    Bane84 Posts: 52 Forumite
    Seventh Anniversary 10 Posts Name Dropper
    I have been doing some reading on here and many people have suggested that there is no point in paying if they arn't chasing you as the defaults will continue to remain regardless of payment...excuse my ignorance.
    “Oh, so you think darkness is your ally? But you merely adopted the dark. I was born in it, molded by it. I didn’t see the light until I was already a man, by then to me it was only blinding. The shadows betray you because they belong to me.”
  • determined_new_ms
    determined_new_ms Posts: 7,883 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    the thing is you won't be able to get a mortgage because of these defaults and they are for relatively small amounts. When were the defaults registered? If it was only recently might be more in your interest to offer a much reduced full & final and have them settled on your file
    DF as at 30/12/16
    Wombling 2026: £25.70
    Grocery spend challenge Feb £285.11/£250
    GC annual £389.25/£2700
    Eating out budget: £ 48.87/£300
    Extra cash earned 2026: £185
  • Bane84
    Bane84 Posts: 52 Forumite
    Seventh Anniversary 10 Posts Name Dropper
    the defaults were registered a while ago. I don't mind paying in full as i am currently in a position to do so... albeit reluctantly lol. But i would much rather start on a fresh sheet. I could also do with some help on where i could start to save more money and cut back. Where can i find a statement of affairs?
    “Oh, so you think darkness is your ally? But you merely adopted the dark. I was born in it, molded by it. I didn’t see the light until I was already a man, by then to me it was only blinding. The shadows betray you because they belong to me.”
  • tallyhoh
    tallyhoh Posts: 2,318 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    the defaults may remain but marked as "satisfied" which goes a long way
    Tallyhoh! Stopped Smoking October 2000. Saved £29382.50 so far!
  • lindsloo
    lindsloo Posts: 252 Forumite
    Default is a default, it is offensive whether settled or not. You would need a serious deposit and be prepared to get stung on interest rates if you tried to get a mortgage with any defaults.

    You could avoid them or just get rid. Some of them will quieten down but every now and then they will rear their ugly head again (talking from experience). If you are really serious about paying and getting a mortgage, leave the ones who are quiet and clear off the ones who are chasing and then review your position when they are clear as to what you want to do with sleeping ones.

    Once all debts are gone squirrel away as much as you can for a deposit until last default slips off then buy. My last one falls off in June next year (10 years after going on a dmp) when I will start house hunting as sick of renting.

    You could also review the dates of the default to make sure they were applied as per OFT guidelines, maybe use this as a settlement tool but someone else should be able to advise better.
  • Bane84
    Bane84 Posts: 52 Forumite
    Seventh Anniversary 10 Posts Name Dropper
    but if i can't get a Mortgage in say 18 moths time would it not make more sense if i partially settled and saved some money?
    “Oh, so you think darkness is your ally? But you merely adopted the dark. I was born in it, molded by it. I didn’t see the light until I was already a man, by then to me it was only blinding. The shadows betray you because they belong to me.”
  • lindsloo
    lindsloo Posts: 252 Forumite
    Yes definitely, make sure you get it agreed in writing with dc that they will report on file as settled in full (not partially).

    How long ago has it been since you've paid anything?
  • lindsloo
    lindsloo Posts: 252 Forumite
    Dcs have also been known to sell on remaining balance so always make sure you get these agreements in writing.
  • Bane84
    Bane84 Posts: 52 Forumite
    Seventh Anniversary 10 Posts Name Dropper
    So confused, I would need to take another look at Experian. See what the crack is.
    “Oh, so you think darkness is your ally? But you merely adopted the dark. I was born in it, molded by it. I didn’t see the light until I was already a man, by then to me it was only blinding. The shadows betray you because they belong to me.”
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