CCJ how to sort out my credit rating!!!!!!!!!

mattmarshall123

Hi,

When I was 21 I received a C.C.J which has been satisfied for about 2 years now. I was told by everyday loans that if I took out high APR credit cards and loans that in one year I would be able to receive a high street loan from my bank!

But I spoke with someone who does Debt Management Plans and he told me that the only way I will ever be able to receive high street credit is too clear all my debt and stay debt clean and wait until my C.C.J has cleared? And that by going with them I would have my debt cleared alot quicker because I won't be paying interest on my debt?

My debts are £1500 (140.1% APR) everyday loans, £250 (40% APR) vanquis and £500 (36% APR). But I only earn around £14,500 pa!!!!!

Obviously these people are trying to sell me something so their option will always be one sided. So I'm hoping that someone can give me a plan!

Thanks

Matthew Marshall

ru20205

Unfortunately, i think 'everyday loans' were not being totally honest with you with regards to a timeframe.

Unfortunately, i would say nearly all highstreet banks would be very unlikely to give you an O/D, CC or Loan with a CCJ on your file. The best thing i can say would be to accept the fact that you wont be able to get a highstreet bank to issue you with anything other than a bank account until the CCJ has cleared.

I could be wrong, but everyone i know who has had a CCJ has hit a brick wall everytime when it comes to getting anything other than a bank account from a high street bank, ive yet to see someone who has.

This is the route i would suggest. The most important loan you need to clear is the everyday loan. The other 2, albeit high interest rates, are nothing in comparison to the 140.1% APR from Everyday Loans. Thats a crazy amount.

If your on £14.5k annually, i would guess your on about £940pm. Unless you have any high living costs the first thing you can do is to clear that loan, aim to do it in 4 months saving £400 pm. You seriously need to get rid of that lead ball round your neck. Next hit the CC's, get rid of the debt on them, starting with the highest APR first.

In terms of planning for the future, you need to reside to the fact that for until the CCJ has cleared from your credit file you will never get more than a average credit rating, at a push. You should be able, once you have cleared the loan and CC's, to get a Capital One Classic CC or Barclaycard Initial, as they are designed for higher risk customers. Unfortunately that is the catagory you fall into.

If you do a SOA we can see what you are spending on a monthly basis in comparison to what your taking home net each month. Whilst £1500 is not pocket change, unless you genuinely do not have any money left over each month you should be able to clear that pretty quickly.

Tixy

Hi matt

I agree the everdayloans guy's advice has not helped you. What people are sometimes advised are that when your CCJ is around 5years old its worth starting to try and rebuild your credit rating by showing you can now handle credit responsibly, that way when your CCJ goes after 6years (from the date of the CCJ) you don't have a blank credit file.
So in that situation people are advised to get a subprime card (such as vanquis) and to use it each month but to always ensure that you repay the balance in full the next month - that way you don't pay any high interest but do have a credit account with lots of green 0s on your file.

Debt management plans can be really helpful for some people, they allow people to pay less than the minimum amounts normally due on their debt, and creditors will often agree to freeze interest (not always, and no creditor has to agree to).
It sounds like you spoke to a commercial debt management company, these will charge a monthly fee which they will take out of your repayments so actually can keep you in debt longer, people on here are always advised to use a charity debt organisation if they need a DMP who won't charge them any fees.

However based on the list of debts you have they are too small for a managed DMP (I know they may not feel small to you) but if you went with a commercial company they would probably charge you a minimum fee of £17 or so each month, that £17 would be far better being spent on your debt repayments.

As posted above it would be a really good idea to write out a detailed income & expenditure account to see how much you can afford towards your debts each month and to see whether you can cut back in any areas to get rid of your debts quicker. We use this format as it does all the calculations for you - http://www.makesenseofcards.com/soacalc.html