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  • FIRST POST
    • Louannaxxx
    • By Louannaxxx 13th Feb 18, 3:33 PM
    • 6Posts
    • 0Thanks
    Louannaxxx
    How will a payment plan affect my credit file?
    • #1
    • 13th Feb 18, 3:33 PM
    How will a payment plan affect my credit file? 13th Feb 18 at 3:33 PM
    Hi,

    I have a Very account which I have been keeping up payments with each month. I had a limit of 2,500 but that's now down to 1,700.

    When I first opened the account the interest was steep but nothing compared to what it is now at 59.9%! I have other debts, all of which I'm paying off slowly but the interest on the Very account is something else.

    So I have spoken to Very and they have agreed to a payment plan for the next three months of 60 per month and they have also frozen the interest on the account for 3 months. To be honest I really just wanted the interest frozen so I can pay off more on the account.

    The person I spoke to told me that this will impact my credit score but when I asked in what way they said they didn't know. I'm wondering if any of you might know how this will show on my credit file?

    If I pay the normal monthly payment rather than the 60 they have set up which she said I can pay more if I'm able to, then will this stop any negative effect on my credit such as a default?

    Many thanks for any help and advice you can offer. I can't wait to pay off this account and close it down, what a mistake it was and a hard lesson learnt.
Page 1
    • zx81
    • By zx81 13th Feb 18, 3:35 PM
    • 16,429 Posts
    • 17,486 Thanks
    zx81
    • #2
    • 13th Feb 18, 3:35 PM
    • #2
    • 13th Feb 18, 3:35 PM
    If they report it as an arrangement, it shows other lenders that you cannot keep up with contractual payments.

    Paying more won't change that.
    • Louannaxxx
    • By Louannaxxx 13th Feb 18, 3:41 PM
    • 6 Posts
    • 0 Thanks
    Louannaxxx
    • #3
    • 13th Feb 18, 3:41 PM
    • #3
    • 13th Feb 18, 3:41 PM
    Thank you for the quick reply.

    If that's the case I guess it is what it is. I don't need any more credit! That's the last thing I need.

    I'm hoping the 3 months will let me pay off a big chunk at the end of the three-month interest free period so I can at least bring the interest down a lot.

    I'm planning to sell unwanted items and cutting down on all spending/seeing what providers I can get cheaper etc so I can raise as much money as possible in the three months to pay off as much as I can.

    I was being hit with around 60 interest each month resulting in hardly a dent in the overall amount.

    Will the negative impact be on my credit file for 6 years? And once it has been paid and my account closed will this help my credit file any?
    • john1002
    • By john1002 13th Feb 18, 3:47 PM
    • 903 Posts
    • 378 Thanks
    john1002
    • #4
    • 13th Feb 18, 3:47 PM
    • #4
    • 13th Feb 18, 3:47 PM
    The arrangement to pay. Will show on your file 6 years from the account closure so if you pay it off in a year then the 6 years will start from that point, obviously the longer in time the less impact it will have and the impact will vary with the lender. You say you don!!!8217;t want any more credit but 6 years plus is a long time.

    Good luck in your very debt reduction plan. Do as much as you can in these 3 months to clear the debt.

    John
    • Louannaxxx
    • By Louannaxxx 13th Feb 18, 3:55 PM
    • 6 Posts
    • 0 Thanks
    Louannaxxx
    • #5
    • 13th Feb 18, 3:55 PM
    • #5
    • 13th Feb 18, 3:55 PM
    Thank you for your reply.

    Yes, you're right 6 years is a long time. I'm beginning to wonder if I have done the right thing or not.

    I just didn't see a way of paying if off quickly with such a high interest rate and as my credit isn't great anyway I'm not eligible for any 0% cards.
    • DCFC79
    • By DCFC79 13th Feb 18, 4:11 PM
    • 31,455 Posts
    • 19,862 Thanks
    DCFC79
    • #6
    • 13th Feb 18, 4:11 PM
    • #6
    • 13th Feb 18, 4:11 PM
    You did the right thing, as time goes on it may have less of an impact.
    Last edited by DCFC79; 13-02-2018 at 4:13 PM.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • Louannaxxx
    • By Louannaxxx 13th Feb 18, 5:36 PM
    • 6 Posts
    • 0 Thanks
    Louannaxxx
    • #7
    • 13th Feb 18, 5:36 PM
    • #7
    • 13th Feb 18, 5:36 PM
    Thank you DCFC, I really hope so.

    I'm aiming to pay off 1k in the 3 months it will be a tall order but I'm determined to pay off as much as I can.

    The only thing is I will then be hit with interest from the 4th month. They said they could do another 3 months after the initial 3 but if I pay off a lot I think they'll be saying I'm no longer struggling to pay so they wont do it.
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