HELP! How can i get a loan with bad credit & a CCJ?

Martster

Hi!,
Myself and my Girlfriend are in a nightmare at the moment - our outgoings are huge and incomings are not!
We have both finished university and are left with huge debts:- overdrafts, credit cards, bill arears, store cards & i have a CCJ.
We are trying to pay off what we can, when we can. We are both in full time work but we havent even contacted all of our older debts to make payments as we are struggling to pay the ones that do know where we live now!
It is seriously depressing, we do not go out, buy anything besides food, drive -basically we don't have much of a life!
What we really need to do is get a loan to reduce our monthly outgoings to around £200-£250 a month -this is hard to get because of our credit history and of course my CCJ.
Does anyone know of a loan company that accepts people with bad credit?
I wish to pay my CCJ off in one lump sum as i read on another page of this site that they (the debt company) can reduce the final amount and come to a deal where the CCJ is removed from my credit record.
We are currently living in rented accomadation -so a secured loan won't be possible.
If getting into this much debt it has taught us anything it has showed us how to survive on vitually nothing and be very strict with ourselves concerning money.
All we need to do no is just get back on our feet and the worlds biggest weight will be lifted.
Can any1 help??? I would be very gratefull for your ideas!
P.s.
Does anyone know about when/how debts get written off?????

Many Thanks!!

Debt_Free_Chick

The last thing you need is more debt, in the form of another loan. Frankly, with a CCJ you won't get one or if you do, the interest rate will be extortionate.

CCJs are NOT removed from your credit record when you pay them. The debt is marked as "satisfied" i.e. paid, but remains on your record for 6 years. There is a separate public register for CCJs - they cannot be removed.

You need a Debt Management Plan, one that helps you structure your repayments efficiently.

You'll find a DIY Plan here

http://www.nationaldebtline.co.uk/england_factsheets/debt_advice_england_wales.php3#3

Please read this all very carefully as your only options are a DMP or Bankruptcy (which could be an option if you have no assets).

angelofabundance

The Consumer Credit Counselling Service have been fabulous. It was a big step to go to them and I felt foolish telling them the mess we were in (made me cry) which made me feel even more foolish! BUT it's a small price to pay, after talking everything through with them I slept for the first time in ages.
They really understand and are not judgemental.
We owed over £50,000 and have been paying for about 4 years now, down to about £22,000 now . The light is beginning to show at the end of the tunnel.
Take that first step, you will be pleased you have.

Martster

I know we don't really need more debt -but we have learned allot from being constantly skint and can save well now, and could cope easilly with one monthly regular lower figure.
The reason for getting a loan is to wipe out debts in lump sums -instead of paying back 20K over a very very very long time - We would come to arrangements with our creditors for FAF discounted payments and my end up paying 20-30% less.
-The CCJ -Apparently if i write a letter to the company i owe the debt to, and offer them a FAF payment on the condition they take the CCJ off my record (instead of the usual 6 years). -i read this on this site and on the CAD site also.

Does this make sense???? or am i wrong.

Thanks for you reply!!!!

Debt_Free_Chick

Apparently if i write a letter to the company i owe the debt to, and offer them a FAF payment on the condition they take the CCJ off my record (instead of the usual 6 years).

CCJs are recorded on a central register maintained by Registry Trust Ltd. A CCJ can be cancelled if it is paid in FULL within ONE MONTH of the judgment.

They are only removed if they were entered in error, paid before the court action or cancelled, as described above.

All the details are here

http://www.registry-trust.org.uk/faqs.aspx

See No. 28 in particular.

If you offer a FAF, then the judgment could be marked as "satisfied" but it stays on the Register for 6 years from the date of judgment.

HTH

Debt_Free_Chick

I know we don't really need more debt -but we have learned allot from being constantly skint and can save well now, and could cope easilly with one monthly regular lower figure.

But if you are paying less per month, it will take longer to pay off the debts ... unless you get all the debt on a lower interest rate. Only those with excellent credit records get the best rates, so you are unlikely to qualify - sorry. With a CCJ you may well be stuck with the "sub-prime" lenders where the rates for loans can be more than the Credit Card rate!

If you have more than sufficient to meet the existing repayments, then list the cards & loans together with the APRs & min repayments. Pay the minimum on every card, but throw all the surplus you have at the debt with the highest APR. Once that's paid off, repeat this exercise with the remaining cards.

If you have bad credit records, you won't get a good loan and you probably won't get a 0% CC either. Sorry, but these are options not open to you so you have to put your own DMP in place to tackle the debt - the only option available, I'm afraid.

HTH

Malestrom

I can see where you are trying to go with this Martster. Your idea is to offer FAFS to all your creditors in the hopes of slashing your actual debt amount. You say you'd like to slash 20-30% off your debt and while this is certainly feasible, the interest rate on a loan to someone in your financial position could well be upto or over 20%. As an example, I went to Ocean Finance's website. Now they only offer secured loans so really, they are in a win-win situation even if you default, yet their interest rate varies from 8.9% to 19.9% depending on your credit rating. Which rate do you think YOU will be offered? And remember, thats a secured loan. None of the unsecured-loan websites that deal with bad credit, that I tried, would even offer up an interest rate or loan repayment calculator.

Yes, I believe that you could get a loan even with the CCJ and your credit history but i'm not really sure that you would be any better off. Are you planning on including the 'older debts' in this payment? What happens if you take out this loan and then they catch up with you?

I think you need professional help with this. You already have a poor credit record so a Debt Management Plan or even Bankruptcy isn't really going to hinder you any more. Both are tough options to take and each have advantages and disadvantages over the other. You need to contact someone like National Debtline, CCCS, Citizens Advice Bureau or PayPlan and tell them everything. They will help you, it will be free and you will be better off.