We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
How I Fought Off Debt Collectors & Got My Credit Rating Back!
Options
dac1958
Posts: 9 Forumite
I visted this forum today for the first time in a few years to get some advise and realised how many people are out there willing to give their time to help others. So I thought I would just post up this quick story about how I got my Credit rating back on Track in the hope that it might help others.
Now I realise that in this present financial climate, things may be a little different to how they were a few years ago,but I still get regular letters from my credit card companies telling me thay have upped my limit. :j
The trick of course
is not to take them up on their offer, we know they want us to spend more and having got myself more or less out of debt now, the last thing I want to do is go back there again.
About 7 years ago I was up to my neck in debt. HP, credit cards etc - You don't need the exact details.I made arrangements to pay these people off on a monthly basis for £10 per month. They all tried to get
me to pay more but I knew they had to accept what I could afford. I received many threats and they all used scare mongering tactics on me but I knew that they could only have off me what I could afford to pay so Ilet them get on with it.
One of these companies took me to court but the court was having none of it and agreed that I could pay them £10 per month and a County Court Order was issued to that effect. Any how - I digress.
After a few years of paying them off I applied for a Capital One Credit Card. The interest rate was extortionate ( somethng like 34% :eek:)
but I only wanted it to buy the 'odd' thing here and there and my plan was to pay it off every month, which I did, so no problem there. They only gave me a £200 limit and this was fine. I would use it every month to, say, buy £25 worth of shopping or petrol. I would only ever spend on it what I knew I could afford to pay off the following month. I sort of used it as an authorised overdraft.
I then applied for another credit card, same interest rate but this time with a £500 limit. Once again I would spend the bare minimum on it each month, usually for food shopping and pay it off each month.
Over time both of these credit cards increased my credit limit and after a few years I applied for another credit card with a far more reasonable interest rate and was accepted.At this point I got rid of the previous high interest cards to avoid temptation.
Once again I have used this card very sensibly but over those few years my credit rating has improved tremendously & on the odd occassion that I need credit now ( last week I had
the exciting task of buying a new cooker from Comets) my applicatin is always accepted.
Now, I'm not trying to encourage any of you to rush out there and get yourself into more debt. All I am saying is that if you use these credit cards sensibly ( and most of us on here will now that we've experienced the horrors of being in debt)
you will be able to build up your CR again.
It is imperative that if you aquire one of these HIGH INTEREST credit cards (If you have a poor credit history
they are the only ones available to us) you ony use it to buy the minimum and buy stuff you have to but anyway -
like food shopping (NO TREATS!) and pay it off in full each month.
After a few years of doing this you will probably be able to apply for a better interest rate credit card (But get rid
of the high interest one - especially as by now they will have upped your credit to much more).
The idea behind all this IS NOT to get loads more credit and get yourself in debt again. You have to be sensible.
I now have somewhere in the region of £12,0000 available to me in credit - tempting? yes. Have I fallen into the same old
trap again . NO! Been there, got the T Shirt, don't want to wear it again. I just want to be in the situation where
I don't feel like I'm wearing a mask and carrying a gun if I go into Comets to buy a new washing machine!
We all know how being in debt and having a bad credit rating affects so many other areas of our lives. If you're still young(ish)
you're probably going to want a mortgage one day. It's depressing and soul destroying when no one trust you enough
to lend you anything ( This is how I felt in any case). Most of us try our best to raise our families and provide for the people we love and we have got into debt trying to be GOOD people, not CRIMINALS.
I've rambled on longer than planned ( WAKE UP!) but I hope my experience will give some of you out there
a bit of hope.
There is just one more thing I want to say. If you have got creditors knocking at your door or you are afraid to open your post - I understand. But don't be bullied by these people. There are laws in place to protect people like you and me. Send them a statement of your income and outgoings and make them an offer of ' what you can afford' (not what you think they would be happy with). Send them a cheque or P/O for that amount with your first letter. They very probably will write back and tell you that your offer is unacceptable
but dont let them scare you into paying anymore. Write back and tell them that this your final offer. THEY WILL HAVE TO ACCEPT IT!!
:rotfl::dance:
Now I realise that in this present financial climate, things may be a little different to how they were a few years ago,but I still get regular letters from my credit card companies telling me thay have upped my limit. :j
The trick of course
is not to take them up on their offer, we know they want us to spend more and having got myself more or less out of debt now, the last thing I want to do is go back there again.
About 7 years ago I was up to my neck in debt. HP, credit cards etc - You don't need the exact details.I made arrangements to pay these people off on a monthly basis for £10 per month. They all tried to get
me to pay more but I knew they had to accept what I could afford. I received many threats and they all used scare mongering tactics on me but I knew that they could only have off me what I could afford to pay so Ilet them get on with it.
One of these companies took me to court but the court was having none of it and agreed that I could pay them £10 per month and a County Court Order was issued to that effect. Any how - I digress.
After a few years of paying them off I applied for a Capital One Credit Card. The interest rate was extortionate ( somethng like 34% :eek:)
but I only wanted it to buy the 'odd' thing here and there and my plan was to pay it off every month, which I did, so no problem there. They only gave me a £200 limit and this was fine. I would use it every month to, say, buy £25 worth of shopping or petrol. I would only ever spend on it what I knew I could afford to pay off the following month. I sort of used it as an authorised overdraft.
I then applied for another credit card, same interest rate but this time with a £500 limit. Once again I would spend the bare minimum on it each month, usually for food shopping and pay it off each month.
Over time both of these credit cards increased my credit limit and after a few years I applied for another credit card with a far more reasonable interest rate and was accepted.At this point I got rid of the previous high interest cards to avoid temptation.
Once again I have used this card very sensibly but over those few years my credit rating has improved tremendously & on the odd occassion that I need credit now ( last week I had
the exciting task of buying a new cooker from Comets) my applicatin is always accepted.
Now, I'm not trying to encourage any of you to rush out there and get yourself into more debt. All I am saying is that if you use these credit cards sensibly ( and most of us on here will now that we've experienced the horrors of being in debt)
you will be able to build up your CR again.
It is imperative that if you aquire one of these HIGH INTEREST credit cards (If you have a poor credit history
they are the only ones available to us) you ony use it to buy the minimum and buy stuff you have to but anyway -
like food shopping (NO TREATS!) and pay it off in full each month.
After a few years of doing this you will probably be able to apply for a better interest rate credit card (But get rid
of the high interest one - especially as by now they will have upped your credit to much more).
The idea behind all this IS NOT to get loads more credit and get yourself in debt again. You have to be sensible.
I now have somewhere in the region of £12,0000 available to me in credit - tempting? yes. Have I fallen into the same old
trap again . NO! Been there, got the T Shirt, don't want to wear it again. I just want to be in the situation where
I don't feel like I'm wearing a mask and carrying a gun if I go into Comets to buy a new washing machine!
We all know how being in debt and having a bad credit rating affects so many other areas of our lives. If you're still young(ish)
you're probably going to want a mortgage one day. It's depressing and soul destroying when no one trust you enough
to lend you anything ( This is how I felt in any case). Most of us try our best to raise our families and provide for the people we love and we have got into debt trying to be GOOD people, not CRIMINALS.
I've rambled on longer than planned ( WAKE UP!) but I hope my experience will give some of you out there
a bit of hope.
There is just one more thing I want to say. If you have got creditors knocking at your door or you are afraid to open your post - I understand. But don't be bullied by these people. There are laws in place to protect people like you and me. Send them a statement of your income and outgoings and make them an offer of ' what you can afford' (not what you think they would be happy with). Send them a cheque or P/O for that amount with your first letter. They very probably will write back and tell you that your offer is unacceptable
but dont let them scare you into paying anymore. Write back and tell them that this your final offer. THEY WILL HAVE TO ACCEPT IT!!
:rotfl::dance:
0
Comments
-
Well done!
This is a story and bit of advice for the weekly newsletter.Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.
There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies0 -
Good stuff !
I had a DCA try and bully me - they threatened me with court so I said 'Go on then, take me to court. No judge will find for you.'
It never happened and I am now debt free on MY terms and not their's.
I haven't gone down the road of high interest CCs only for the reason that if I want something now then I have to save for it but I have also put away what I consider a good emergency fund.
Good advice dac1958 and I wish you well - btw, how much longer before you are debt free ?Thanks to MSE I cleared £37k of debt in five years and I was lucky enough to meet Martin to thank him personally.0 -
I love this story 'cos it is so similar to my own - yes this route to good credit rating really does work - given time. I followed the excellent, clear advice posted on various threads on this forum and a few years (and tears) down the line am now accepted by credit cards and banks alike.
I agree that it is a great feeling just to know that if you need a quick fix solution like a replacement appliance or suchlike that it is available without the dread of being rejected.
I also agree that restraint still needs to be applied not to fall back into debt, but after a few years of being nifty thrifty the habit does stick with you.
Well done to you dac1958! (and also to me if I am honest!!!!):smileyheaKosmicPink225:smileyhea0 -
I tried this - had a card with Capital One and another with Lloyds. It was great until Cap One suddenly withdrew payment rights from me with NO explanation, and within 4 weeks of that, Lloyds had a payment processing error which cleared out my bank account but never actually paid the bill. With fees added on for 'late payment' after 'late payment', I couldn't afford the bills. My credit rating is ruined because they both placed defaults on my account. I am fighting to have them removed as they were issued incorrectly, but sometimes credit cards aren't that easy to manage when you're on a budget. You always have to be prepared for them to f*** it up for you
Well done tho, dac1958, it's good to see people can come thru situations and it's great you've shared your story to encourage and inspire others!
I've got nothing else but I've got my family.
Mum to Moo age 6, Wills aged 3. 2nd wedding anniversary 11/13! :j0 -
Good stuff !
I had a DCA try and bully me - they threatened me with court so I said 'Go on then, take me to court. No judge will find for you.'
It never happened and I am now debt free on MY terms and not their's.
I haven't gone down the road of high interest CCs only for the reason that if I want something now then I have to save for it but I have also put away what I consider a good emergency fund.
Good advice dac1958 and I wish you well - btw, how much longer before you are debt free ?
Thanks for your good wishes. I will be debt free by the end of this year - Yipee :T0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.9K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards