Help and advise about my old debts

Mattym_2

Hi. I am after some help and advise about my current situation. I am 25 years old, and have around £5000 worth of debt. This was mainly done when I was between 17-19, when I went abit crazy with my credit cards and pay day loans. Since then I have received many letters and phone calls which I used to ignore, because I wasn't in a position to repay anything. Now, older and wiser, I am able to, being in a long term job and with a family, i am looking to our furture. I know my credit rating won't be a quick fix, but I am looking to get it back to a good rating. I have applied for my credit report, and waiting for this back so I have a list of whom I owe. My question is though, is there anything else I can do to increase my rating quicker, other than committing to what I am going to agree with all my debtors. Any help will be greatly appreciated.

Thanks

Matthew

Sunshine22_2

Hey Matthew

I heard that a good way to get your rating showing positively is to spend on a credit card and pay it off monthly (before any interest!). This shows as credit but that you can responsibly pay it back

MusicalLawyer

Going by your age now, and the age when you racked up this debt, some MAY be statute barred.

When did you last make a payment on the debt, or acknowledge the debt in writing? If it has been a period of 6 years (5 in Scotland) then the debts may well be statute barred. This means that they cannot be enforced in the courts. You'd technically still owe the money, but they wouldn't be able to get a court order for you to repay - this is all assuming you do not have any CCJ's against your name for the debts already.

Credit Cards are a good way of building your rating as Sunshine said. So long as you pay it off in full every month - so you could do your grocery shopping on it or something.

Mattym_2

Hi, thanks for the quick reply. I was aware of this, but with the situation I am in with the outstanding debts, wasn't sure if I could get another credit card, as the last time I applied, around a year ago, I was turned down.
Musical lawyer, thanks. I would be concerned about the fact I did still owe the money. Also, I was under the understanding, even though I am repaying the debt late, it would still increase my credit rating. Is this correct?

Thanks again,
Matt