fed up! clearing all debts - going backwards not forwards..??

srichards

Hey all.

I havent posted in ages, but I read almost daily!!

I got my credit report in May and it was pretty shocking, I thought right sod this I want out of debt and want to be able to get a mortgage. I had toyed with the idea of going bankrupt - would have been cheaper lol

I had also just got a new job where I am on 35k. We have just under 2k a month come in (with CTC and CB)

So Ive been paying off as much as possible each month to settle debts.

Ive been able to pay off about £2500, as well as keep up to date on council tax (£120/pcm), TV license up to date, all phone bills are paid every month (lots of green there). My bank is never overdrawn. 2 credit cards (so far) have been settled in full one off payments. I have also brought my utility bills right up to date, I was £1k in arrears

I got my credit report again this evening, and the figure has dropped from fair/poor to very bloody low, lower than a rattle snakes whatsits! 132 !

So firstly !!!!!! is that all about??

And secondly what else can I do to up my credit score??

But also, having a discussion with my parents today, my mum has offered to get a loan to help me clear everything completely and I just pay the repayments to her every month. about 7k will cover everything.

Is this a good idea?

If everything is paid off, how will that increase my credit worthiness to be able in a year or so to get a mortgage?

I feel as if Im doing my best and getting no where, in fact I feel as if I am going backwards in terms of credit worthiness.

What do you think guys?

Thanks SR x

chevalier

Are you on the electoral register? Have you paid off debts AND CLOSED DOWN THE ACCOUNT. Some credit score will score negatively is you have potential access to large amounts of credit even if the cards you have access to have zero balances on them.

Ref you mums kind offer. I guess the thing to ask yourself is whether you have learned the lessons from these debts, and will not get into this position again? If the answer is yes, then taking your mums money is ok. If, in your heart of hearts that you know that you are going to be tempted to, I don't know buy shoes with it, and not pay off the loans then maybe not.
chev

srichards

Hi chev

thanks

Yes I am on the electoral register.

The debts on the cards I have paid off have also had the accounts closed.

Re my mum.

It started from a bad divorce, working for the NHS and being off sick for a year. Rather than shoes etc. So definately lessons have been learnt there. I ended up losing my NHS job last Sept (when I say lost, it was unfair dismissal)


This cannot go on and now that Ive taken my scientific background and moved into the sales side of things we are incredibly better off and at some point I'd like to buy a house for us.

The last few months I have taken my head out of the sand and started to get everything sorted.

My one fear is a CCJ from last xmas for the sum of £158. This will be paid end of this month (as well as other things).

thanks

chevalier

Are you persuing the unfair dismissal as there is a time limit.....

srichards

oh yes for sure, I lodged it in good time and its all going through a solicitor at present. Its been going on since Sept 07

srichards

Mornign all


So how would if affect my credit worthiness if all was paid off settled & satisfied?

Is this the best way to go/

Thanks SR

angelflower_2

I am not sure really but as your goal is to purchase a house....do you have any set plans for starting to put aside a deposit alongside paying off your debts. Its extremely difficult to get a 100% mortgage at the moment, especially in the subprime market which you are likely to be included in as you have had a ccj in the last 6 years whether this is paid or not. It would def be better to have things paid off but not sure if this means your credit rating would be better. I read something in Martins email recentl (i think) about improving your credit rating using a prepaid credit card and something else....will go see if i can find the link

srichards

Thanks angelflower, crikey it seems as if its all going to be for nothing then really. Pay everything off and still be the bottom of the creditworthiness barrel. Maybe I should have just gone bankrupt instead.

*sigh*

tyllwyd

srichards wrote: »

But also, having a discussion with my parents today, my mum has offered to get a loan to help me clear everything completely and I just pay the repayments to her every month. about 7k will cover everything.

Is this a good idea?

What is your mum's situation? What would happen, in the worst case scenario (perhaps if you got ill tomorrow and could never work again) - could she afford to lose this money? What would happen if her circumstances changed drastically and she asked for the money back asap? If she can't afford to write the debt off if need be, I'd say no, don't do it - at least with your other creditors, it's a commercial transaction, but with your parents there is a lot of other emotional responsibility if things go wrong.