In a very sticky situation..

Hi, im fairly new to these forums so go easy on me ! haha.

Over the past few years i have been lending without thinking about it first and only now has it caught up with me. Recently i applied to rent a property with my girlfriend but we were refused because of my credit rating, the agent said i would be a risk and may miss payments. At the time this was quite embarassing, i felt depressed, down and i felt i was usless. After a short chat with my girlfriend we worked things out and i already started feeling alot better. Now i have decided to repair my credit rating and we have set a target of October next year, to get our own place.

I have already starting making sensible changes to my lifestyle. I used to work 30 miles from home, so petrol costs were draining me. 2 months ago i started a new job where i can walk to work and im earning £500 more on my monthly take home. Another thing ive started doing is making my own lunch, i used to be a !!!!!! for buying lunch and spending £5-6 a day. My girlfriend and i have also started sharing the cost of things such as going for a meal or popping to the cinema so that is really helping out too.

At the moment i have the following debts;

Welcome Finance; £2000 and paying £100 a month
Halifax; £500 (defaulted) and paying £50 a month
Marshall Ward; £70 and paying £10 a month

I also have a loan outstanding with A&L although they seem to have forgotten about me atm. I had an arrangement where they would phone me every month and take a debit card payment. I havent heared from them for 6 months, where do i stand with this and would it be best to get in touch with them ? Also its not showing on my credit report ?

My debts were a terrible amount more but i have already claimed back charges and used the lump sums to reduce the more serious ones.

My goal is to be debt free by this time next year. At the moment i am netting £1200 a month so i am planning on using £300 an splitting it accordingly between my existing lenders. I will be starting that in November as im currently paying the minimum because i have a family holiday to pay for in October.

Any advice would be great, thanks for reading !


  • dotstar24
    There is more than one company that would hold your credit file, so what doesn't appear on one may appear on the other. Expirian and equifax and two of the companies, there may be a 3rd I'm not sure. U sound like you're on the right track with the lifestyle changes etc.

    try looking in your local paper for private landlords who may not be as fussed as a letting agent (we're with private landlord now, the guy is a saint, never credit checked us and doesn't mind if the rent is late or split between two weeks)

    if u have to go through a letting agency, something that we did was pay 3 months rent as a deposit, but we had it written into our contract that 2 months would be paid back to us if we paid rent on time and there were no arrears

    hope this helps. x
  • RAS
    RAS Posts: 32,767 Forumite
    Name Dropper First Anniversary First Post

    you need to know the APRs on those debt and pay every penny that you can off the most expensive debt.

    HAve a play with the snowball on Try paying the minumum off the most expensive debt first and then set it up to pay pro rata and see how much longer and how much more expensive that is.
    The person who has not made a mistake, has made nothing
  • GeorgeUK
    GeorgeUK Posts: 7,737 Forumite
    I would pay to get copies of all 3 credit reports as all your debts may not be included on each individually. You can get copies of your credit report for £2.

    With regards to making payments towards your debts, it will be better if you make the minimum payment to all debts and throw anything left at the dbt with the highest APR. You'll pay less interest that way.
    After falling off the gambling wagon (twice): £33,600 (24,000+ 9,600) - Original CC Debt: £7,885.91

    Dad Gift 6k ¦ Savings & Inv Tst: £2,500
    Loan 10k: £0 ¦ Dad 5.5k: £2,270 ¦ LTSB: £0 ¦ RBS: £0 ¦ Virgin £0 ¦ Egg £0

    Total Owed: £2,270 (+6k) 11/08/2011
  • dh1986
    Thanks for the advice so far, i will get signed up with Equifax too. I do recal them having a more detailed report when i used them a few years ago.
  • dh1986
    Oh also how long would it take to repair my score. If i meet all my repayments and get most of my debts cleared by this time next year. At the moment with credit expert, my score is 369 which is dire i know.
  • cady
    cady Posts: 668 Forumite
    hi im not sure how long it takes to repair but i know anything stays on your file for 6 years the best you can do is make your payments on time try to get out of arrears and pay off as much as you can ..... easier said than done i know lol.... good luck
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