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    • superstud
    • By superstud 11th Mar 18, 8:08 PM
    • 73Posts
    • 6Thanks
    superstud
    effect on future AP vs Default
    • #1
    • 11th Mar 18, 8:08 PM
    effect on future AP vs Default 11th Mar 18 at 8:08 PM
    My partner is in a arrangement to pay for her 4k overdraft she is struggling only paying 20 a month as we both do not work now.

    She has an arrangment to pay marker despite the bank removing the over draft she couldnt afford the 4,500 to pay them in one go.

    She's wondering if she lets them issue a default rather than having an AP marker for 20 years. whether that will effectively wipe off the debt after six years and what the bank could do e.g. ccj or
    anything?

    Or option B if she carrys on with the arrangement how it may be viewed by lenders in future i.e credit cards as everythings up to date on credit cards.

    All advice welcome.
Page 1
    • StokieBecks
    • By StokieBecks 11th Mar 18, 8:18 PM
    • 4,526 Posts
    • 27,263 Thanks
    StokieBecks
    • #2
    • 11th Mar 18, 8:18 PM
    • #2
    • 11th Mar 18, 8:18 PM
    It doesn't wipe the debt out after six years it is still owed just does not appear on a credit file six years after the default date, whereas an arrangement to pay will stay on for six years after the final payment is made.
    • StokieBecks
    • By StokieBecks 11th Mar 18, 8:24 PM
    • 4,526 Posts
    • 27,263 Thanks
    StokieBecks
    • #3
    • 11th Mar 18, 8:24 PM
    • #3
    • 11th Mar 18, 8:24 PM
    Ideally she needs to post a statement of affairs of incomings and outgoings and then the posters on here will be able to see where there is room for manoveure with payments. Also get her to keep a spending diary of everything she spends to see where money is going. The default would be better but it will then take those six years before you can consider it not affecting applications for credit. Although she shouldn't be looking to take out any more credit until this is under control
    • superstud
    • By superstud 11th Mar 18, 8:24 PM
    • 73 Posts
    • 6 Thanks
    superstud
    • #4
    • 11th Mar 18, 8:24 PM
    • #4
    • 11th Mar 18, 8:24 PM
    It doesn't wipe the debt out after six years it is still owed just does not appear on a credit file six years after the default date, whereas an arrangement to pay will stay on for six years after the final payment is made.
    Originally posted by StokieBecks
    We are aware of that.

    In reality after 6 years from default lenders would not see it. We need advice as to whether she would be best defaulting and riding the 6 yrs out or having an AP on her file for over 10years.
    • superstud
    • By superstud 11th Mar 18, 8:27 PM
    • 73 Posts
    • 6 Thanks
    superstud
    • #5
    • 11th Mar 18, 8:27 PM
    • #5
    • 11th Mar 18, 8:27 PM
    Ideally she needs to post a statement of affairs of incomings and outgoings and then the posters on here will be able to see where there is room for manoveure with payments. Also get her to keep a spending diary of everything she spends to see where money is going. The default would be better but it will then take those six years before you can consider it not affecting applications for credit. Although she shouldn't be looking to take out any more credit until this is under control
    Originally posted by StokieBecks
    yes had heated talks on that shes not taking anything else out just keeping within limits we have already.
    could her bank take it further e.g. CCJ or bankrucy thats what she cant get a straight answer to so i wanted to ask on here
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