Help in my recovery

Mark_1979

Hi all,

I have only just discovered this place - a really useful mine of information!

My problems began several years ago - I got myself addicted to online gambling and built up lots of debts. I also totally neglected paying bills, and entered a vicious cycle of depression and more debt. To cut a long story short, I was rescued when I was on the brink of doing something really silly by my family. They have helped me to straighten myself out. I have sold my flat, and been able to pay off all of my debts (made a big profit in the 5 years I owned the flat), although this did invove coming to an agreement over a Capital One debt where I paid 80% of what I owned. So yes, I am now debt-free! (woohoo! - first time since I went to uni) However the effect of my problems is still with me.

Whilst I built up my debt I received 3 CCJs, and also the default on the cc bill. All have been paid off, but they are sti on my credit record. I understand the CCJs will stay for 6 years. My question is - am I detined for 6 years of never being able to get credit, or will my change in circumstances, and (hopeful) change in approach to financial matters allow me to slowly build back up my rating? Also, any advice on how to go about slowly improving my rating would e much appreciated.

Many thanks for reading - I'm 27 but feel like a complete novice in all things financial!

Yours,

Mark

ladysparklexx

:hello:

first of all lots of :grouphugs:

it sounds like you have come really far and have done well to get your self sorted and debt free

im afraid i dont know to much but loads of people will be along and help

im pretty sure that you will beable to get some credit over the next six years but i guess it will just be at a higher percentage and only certain types of credit

to improve your credit rating you will need to beable to prove to creditors that you have learnt your lesson so any credit you do get use wisely

ladysparklexx

:grouphug: thats what i ment

Mark_1979

Thanks for the group hug - I'm slowly trying to get back on my feet. Have just started working again, am just looking for reassurance that the next year or two aren't going to be as difficult as I feel they are. You get the impression that when you have poor credit you are somewhat of a leper. I'm not a leper am I?

Hello

If you are then I married one so it can't be all bad! Congratulations on your lightbulb moment :T

I think keeping your nose clean is the best way of repairing your credit record. Keeping what credit you have a shining example of credit worthiness from here on in. :cool:

If you don't mind me asking, why is this important to you? I really think you should be avoiding all things credit at the moment to repair not only your status but your mind too. Please understand that I admire what you have done, just please don't fall into a trap of credit again.

Good luck

Hello

ladysparklexx

of course your not a leper

well done on starting back at work thats a huge step your doing well

Mark_1979

Hello wrote:

If you are then I married one so it can't be all bad! Congratulations on your lightbulb moment :T

I think keeping your nose clean is the best way of repairing your credit record. Keeping what credit you have a shining example of credit worthiness from here on in. :cool:

If you don't mind me asking, why is this important to you? I really think you should be avoiding all things credit at the moment to repair not only your status but your mind too. Please understand that I admire what you have done, just please don't fall into a trap of credit again.

Good luck

Hello

I don't mind you asking at all! Its important purely for the fact that I would like to be able to buy a house again one day, plus I love travelling, and that can be quite awkward without a credit card.

Tr@cker

Having no credit lines is in a way a blessing in disguise for a recovering gambler surely because addictive gambling is every bit as bad as alcoholism-its with you for life. Make sure you stay away from that.
Its usually six years on record for CCJ's and i dont think there's any way around that but you could build up some savings in the meantime, show you're responsible with money again and when the times up you'll appreciate it so much more. Good luck (not gambling!)

homersimpson_3

I have sold my flat

was it repossessed? or did you sell if off own back and use money to pay debt. if repossessed you have defaulted on own mortgage why should bank trust you with another one again?

I don't mind you asking at all! Its important purely for the fact that I would like to be able to buy a house again one day, plus I love travelling, and that can be quite awkward without a credit card.

you are 27 years of age and should be clear by 33 (27 +6 years= 33) the time at which alot of people are just starting to buy a house. how much do you actually have now for a deposit (even if you could get a mortgage)? it often takes several years for people to save the amount required for deposit and others associated costs even when 2 of them are working. if you want to go travelling could apply for nationwide flex account.

Also, any advice on how to go about slowly improving my rating would e much appreciated.

if you want bank to trust you, you will need to prove to them not that you have a '(hopeful) change in approach to financial matters' but an actual, committed long-term 'change in approach to financial matters' - in practical terms no going overdrawn, start building up savings and show a pattern of regular money going into account and being saved, no failed direct debits, uncleared cheques. do you have emergency fund, adequate insurance etc? you can have credit cards which you 'preload' (i.e. you put the money on first and then can spend money). some people have applied for and been accepted for credit cards with very poor credit histories on site- small limits. some lenders will grant mortgages even with ccjs but i would avoid them like the plague- usually found in the mortgage directory with very high interest rates- the directory which is also full of adverts for secured lending (says it all really). every time you apply for credit card they will do a credit search and this can damage credit rating further. you have to pay fee for this preloaded credit cards- waste of money?- see previous threads on mse. keep your head down-nose clean- save as much as you can for next 6 years and pay off as much as you can of purchase of house with cash- take out the lowest mortgage you can and make large overpayments so paid off in quicker time.
some banks/building societies have 'home buyers' savings accounts which are designed for people saving for house- most pay pathetic rates of interest- saw two this week around 2% gross - ensure you get the best rate. inflation around 2.5% at moment so value of savings decreasing in these accounts.

CFC

Hi Mark, well done on cleaning up the debt. You've now got a fresh start.

The next 6 years - well, to start with, avoid credit like the plague and start saving. To rebuild your credit history, leave it a couple of years and then try for a Capital One Classic card or the other one for bad credit risks, I think is't MBNA. They will only agree to a very small limit, and they'll charge you interest through the nose, but they will take on bad risks. Use it wisely and you'll start to build credit history.

You're only 27. A lot of single people don't buy until they are over 30. Just because you had a property young, doesn't mean you need another one right now. Don't worry about it - you're young, and anyway you may end up with another half with a good credit rating who can put a mortgage in her/his name. Start saving towards a mortgage deposit, as the more you can put down, the less interest you'll pay anyway.

As for travelling, well, it looks like it'll be no credit cards so you'll have to go for travellers cheques...

GUMPO

Hey Mark. Have your first thanks from me and welcome aboard. It must be a pain in the erse having fought your way back and still be dogged by CCj's. Battle on old son the worst is over.