New Guy With Bad Credit

Bad_Credit

Hey Everyone,

Just come acroos this site and it looks very interesting. Looking forward to picking up alot of tips. ANyway i am 26 and £23000 in debt All of that is on credit cards except one loan of £4800 from Barclays. The problem i am facing is that i seem to have a really bad credit score and can't seem to switch my balance from one card to another

Anyone got any ideas what i should do? I am paying the minimum on a few card right now and it is taking up half my monthly pay

Also had a card with Mint whcih i defaulted on, i think As they are still sending me statements. I am paying £30.00 a month and half of that is interest. When i phoned them to enquire baout my account they said account was closed. I was thinking if i stopped paying and a credit agency chased me would it affect my credit. I mean then they could no longer charge me interest as i would have a fixed amount to pay off. Just wondering what i should do hear continue paying or stop and let some one chase me for a fixed amount? My credit is shizzle anyway so am not too bothered about that. But if i continue to pay and it improves my credit then i guess it would be worthwhile.

Thanking all those who reply to this thread in advance.

Bad_Credit :mad:

Littlemiss-lotsofdebt

Hi Bad_Credit

I'm still fairly new, but I know that you will get asked for a SOA (Statement of Affairs) by everyone else so that might be a good starting point before anyone here can help you. This basically means listing all of your income and expenditure including the balance of your CC's and the APR.

Welcome to MSE.

xxx

jitsuguy

Hi Bad_Credit,

Ok we need your SOA (as littlemiss... has said). Your SOA should be broken down:
Income per month (Total at the end)
Outgoings (Total at the end)
Debts(Who it is with, Total amount, APR, minimum payment)
Please total the debts at the end as well please.

If you look around you will find examples of SOAs.

Firstly it is worth checking to see if you pay PPI (Protection insurance) on your cards and loans, if you do cancel it. Firstly you will be paying it every month and won't be clearing any of the debt, secondly it probably wouldn't pay out anyway.

As for your credit rating you have so much debt that is probably why your score is so low. If you stop paying you will probably harm your credit rating even further. But to be honest it is going to be badly damaged so you probably can't do it any more harm!

Jitsuguy

southernscouser

Hello mate!

Have a look at this thread for guide for a SOA!

Regarding your credit rating, the best thing to do is order your report from both Equifax and Experian. These cost £2 each.

Then go through them and make sure that any old accounts you may have are properly closed. Sometimes they stay open with £0 balances but if you have say a £10,000 limit this doesn't look good to potential lenders as it is £10,000 of possible debt!

file_wizzard

If the mint account has been closed, then undoubtedly they will have also marked it as “Defaulted” with the credit reference agency’s.

If this is the case then basically you have 0 chance of obtaining any new loans or credit cards and a sensible APR rates, ( regardless of the fact the more credit is the last thing you need right now)

With regards to stopping interest by having the debt sent to e DCA this is not always the case when the debt is sold on, most debt collectors can and WILL continue to charge interest and fees, and these generally tend to be far in excess of the original lenders fees anyway.

As ahs been said provided a SOA and people can help with the current and immediate problem, if your interested to find out just how bad your credit is and what has been marked on your file try the following three Credit Reference Agencys

Statutory reports for the cost of £2 each can be obtained from the following;

http://www.experian.co.uk/consumer/index.html

https://www.econsumer.equifax.co.uk/consumer/uk/sitepage.ehtml?forward=gb_elearning_credit14

http://www.callcredit.plc.uk/consumer/order-your-report

Bad_Credit

Thanks for all the replies guys! :j

I will get down to sorting out an SOA. Just seem to be bogged down with this debt at the moment :mad:

I am pretty optimistic so hopefully things will soon get better :rolleyes:

Bad_Credit

LollyLou_2

Bad_Credit

Just a bit of advice. Whilst you are looking into sorting out your credit rating, don't apply for any further credit cards or loans as if you are likely to be declined, this will show up on your report and lower your credit score even further!

Good luck - post your SOA soon and the top people on this site will help you loads!!