Rent/Default + Equity

[Strepsi]

Re: Rent/Default + Equity

It's a difficult decision for you, but one you must both sit down and agree on or there could be 'discussions on ' later on! We can help discuss ideas, but can't make any decisions. Post here if and when you want to bounce ideas as a different perspective can help. Does your wife know that you are posting here and if so could her reading on AAD help her?

You often find posts at 1 or 2 am when people can't sleep.

I have told a little about enforceability and unenforceable.

I am starting to get myself in a knot!

So for arguments sake we sell our house, we have enough equity in the house to settle debts via f and f. Am I right in thinking that the defaults would still remain on our files, which would be for a further four years.

If this was the case? There probably wouldn't be any benefit to using all our equity to pay off debts.

I am very mixed up. I might be posting something else later.

[PlanB]

Re: Rent/Default + Equity

So for arguments sake we sell our house, we have enough equity in the house to settle debts via f and f. Am I right in thinking that the defaults would still remain on our files, which would be for a further four years.

If this was the case? There probably wouldn't be any benefit to using all our equity to pay off debts.

The defaults will remain on your credit file for six years from the day they went on your credit file regardless of whether you pay off the debt.

Defaults are a negative blemish until they expire.

If you only want to pay off your creditors in order to clean up your credit file then you may want to rethink your strategy.

Some creditors may agree to remove the default as part of a F & F deal, but it's rare. They prefer to mark your file "part settled or part satisfied" which is a little help to your overall financial image, but not much.

Plan B x

[Strepsi]

Re: Rent/Default + Equity

The defaults will remain on your credit file for six years from the day they went on your credit file regardless of whether you pay off the debt.

Defaults are a negative blemish until they expire.

If you only want to pay off your creditors in order to clean up your credit file then you may want to rethink your strategy.

Some creditors may agree to remove the default as part of a F & F deal, but it's rare. They prefer to mark your file "part settled or part satisfied" which is a little help to your overall financial image, but not much.

Plan B x

Thanks for the reply, you have reinforced what I was thinking.

My wife thinks I don't want to pay the debt off.

But I want to do what is right for us. I don't want pay £30,000 to CC companies to not see any benefit.
We could save that money to invest and then when the defaults have dropped off, we could use that as deposit for mortgage.

Told you getting myself in a knot. If we haven't paid all our debts off when our defaults go, do we get defaulted again or is this is the 'statute barred'?

Don't really want the initially thread to turn into another topic but I think it is all relevant.
Cheers

[PlanB]

Re: Rent/Default + Equity

If we haven't paid all our debts off when our defaults go, do we get defaulted again or is this is the 'statute barred'?

Don't really want the initially thread to turn into another topic but I think it is all relevant.

You're taking a holistic view which is the best way to tackle debt issues since they're only part of your life not all of your life

Gather the available information first so you and your wife can make an informed decision. We never give advice we only toss out ideas based on our personal experiences.

Once you learn about the dark side of the money lenders and debt purchasers you may lose your appetite for paying them any money which you're not obliged to pay in law. They've had their money back ten times over with the obscene interest and charges they've added to your account over time. What they've 'lost' on paper they've written off against Corporation Tax so not a real loss in actual terms.

An account can only be defaulted once. After it drops off that's the end of your file on the CRAs.

Statute Barred is different. That's six years from your last payment or acknowledgement. This could be some time after the default if you went into a DMP or made token payments etc.

So a debt entry can vanish from your CRA file but the debt won't necessarily be SB.

Plan B x

[Strepsi]

Re: Rent/Default + Equity

You're taking a holistic view which is the best way to tackle debt issues since they're only part of your life not all of your life

Gather the available information first so you and your wife can make an informed decision. We never give advice we only toss out ideas based on our personal experiences.

Once you learn about the dark side of the money lenders and debt purchasers you may lose your appetite for paying them any money which you're not obliged to pay in law. They've had their money back ten times over with the obscene interest and charges they've added to your account over time. What they've 'lost' on paper they've written off against Corporation Tax so not a real loss in actual terms.

An account can only be defaulted once. After it drops off that's the end of your file on the CRAs.

Statute Barred is different. That's six years from your last payment or acknowledgement. This could be some time after the default if you went into a DMP or made token payments etc.

So a debt entry can vanish from your CRA file but the debt won't necessarily be SB.

Plan B x

Here I am again!

Just really an idea. If we were to rent both our houses out and we saved the rent at 6% savings account we could have saved £30000 over 48 months. If we were then to sell the house depending on the market we may have between 20 - 30k in equity. So approx 50 or 60k? I appreciate we were going to pay rental for that period anyway.

Perhaps when it comes to our default period which ends in approx 4 years, we could settle our debts via f & f offers. That way all debts go and we are in the clear? (Is that correct?).

If that is the case would we not be better saving, making token payments of £1.00 and not paying anything to uneforceable debts.

I hope that makes sense... just going around my head!