New member debt advice

[nightwatch]

My priority is to get my credit rating to a good enough point as soon as possible to enable us to get a mortgage or at least start to save for one.

My DMP started March 2020 which I decided to take out as although I was scraping by with payments it simply wasn't leaving me much leftover to have a reasonable quality life for our children. It was so stressful.

Thank you for clarifying regarding the defaults. I'm just wondering if I continue to get monthly defaults as I am at the moment with a few of my creditors, will it be 5/6 years from the date of the last default when my credit will be cleaner (assuming the debts are paid off by then, which they should be?)

you say you are getting Defaults every month?

The company sending a default, is it by letter? if so this is different to a FORMAL default.

A formal default is one that the original lender registerers with the credit referance agency's, you can only be defaulted formaly on that debt once, it will stay on your credit file for 6 years, 5 in Scotland and then will drop off, even if the debt has not been repaid. it will say on each account on your credit report*Date of Default*

If there is no Default date but a D in the payment row this is just a mark to say the account is delinquint , A for Arrangement to pay,
if this is the case with you then it will continue untill you settle the account.

The owner of the account can send as many default letters as they like BUT. ONLY ONE can be formaly placed on your credit file

[dannilcrook]

you say you are getting Defaults every month?

The company sending a default, is it by letter? if so this is different to a FORMAL default.

A formal default is one that the original lender registerers with the credit referance agency's, you can only be defaulted formaly on that debt once, it will stay on your credit file for 6 years, 5 in Scotland and then will drop off, even if the debt has not been repaid. it will say on each account on your credit report*Date of Default*

If there is no Default date but a D in the payment row this is just a mark to say the account is delinquint , A for Arrangement to pay,
if this is the case with you then it will continue untill you settle the account.

The owner of the account can send as many default letters as they like BUT. ONLY ONE can be formaly placed on your credit file

Ahhhh, this makes sense now and I can see the date on the file - I will update my original post with the proper dates now.

[dannilcrook]

trouble with mortgages people in similar circumstances rush into mortgages too early they cannot get mainstream ones only expensive ones, later down line tends to get so expensive that things fail? happens all too often.

even main stream lenders in some cases get away with increasing fro 1.0% to 4.2% and the government do nothing about it as in our case, eventually downsized and paid off and bought outright a smaller (Needs) property. (I too had a heart attack in later years = wages cut by £200+ per weeks hours from 48+hrs to 16 hours through employer not listening to doctors who stated get back to normal.

I won't be in a rush to get a mortgage if it's a bad deal (especially based on the mess I've gotten myself into with credit now). Just fed up of renting and not be able to do anything with it - we have 4 children 12 and under too and could do with a 4 bed property but in the area we live in, they're at least £1500 per month. We can't really move to a cheaper area either as we co-parent and schools/ex's are nearby.

[dannilcrook]

CRA record details for companies to see for 5 years (Scotland) 6 years england/wales. usually will reappraise lending towards the end of that time (if no further adverse entries.

I've just updated with the accurate default dates - so my latest one is September 12th 2021, so that means they won't have dropped off until 6 years from that date? If the debts are satisfied before then (which they should be), will the defaults still have a big impact?

[nightwatch]

I've just updated with the accurate default dates - so my latest one is September 12th 2021, so that means they won't have dropped off until 6 years from that date? If the debts are satisfied before then (which they should be), will the defaults still have a big impact?

depends, it will show as satisfied/closed on whatever date it is paid off.

you may have to use a Mortgage adviser to see what they can find you at a competative rate, but you may need a large deposit.

NW

[nightwatch]

Looking at the default dates and amounts owed, you may be better off, trying to clear the smaller amounts, if you can, then up payment's to the bigger ones, because you are in a payment plan with SC doesn't mean that you can't try and put a couple of squid to one side if poss, then pay the lender your self. telling SC after you have done it, they will then allocate the ammount you pay them to the remaining debts just an idea, you don't have to do it. NW