want to clear debts - best way?

con1888

Hi all,

Bit of background info which should help for what I am asking.
I am 22. When I was 18 I took out some loans, bought from catalogues and had a mobile contract which I simply could not afford. Stupid yes I know that but at the time I didn't care.

Now however I live with my OH in his house but in the future would like to be able to buy a house together which obviously won't be possible atm with my credit rating.

I earn about £900 a month atm (work 4days a week) so want to put £100 a month towards paying off debts which are somwhere around £1k at a guess... now I have a letter from one companys debt agencey 'Lowell financial' asking for £30 pcm to pay back my debt I have of £261.93.

Aside from that I am not sure what the other companies are and exactly how much I owe because when I moved house they didn't get my new address.

How do I go about finding out and contacting them?

When contact is established, how do I prioritise how much I pay to which company and do I tell THEM what I can afford or will they dictate what I have to pay?


Thanks in advance for any help, really want to be debt free by the time I am 25 and hopefully have my name cleared. How long does it take for debt to clear usually? Will never want credit again other than (hopefully) a joint mortgage.

sistafromanothermista

:wave: Have you applied for your experian report? It's only £2 and should show which debts are outstanding. Worth a look?

con1888

I haven't no, had a free one about a year ago but have misplaced it.

Is it online I do it and is the info all current and upto date ?
Obv would rather it were free :P but if its £2 and helps me get everything in order then that's a start.


I know £1k or thereabouts of debt won't seem a lot to some people but it's badly affected my credit rating as I haven't been paying towards it.

sistafromanothermista

Oh you can sign up to the free 30 day trial thing with experian but make sure you cancel it or they will take around £15pm! after the free trial expires. I didn't fancy putting my card details in and running that risk hence why i paid the £2.
If you're not fussed, just sign up and you can see your report instantly.

con1888

I've done the free one before so may try it again, usually cancel it straight away but do have to go through the annoying sales advisor over the phone.

By paying the £2 can that be done online and see it instantly ?

con1888

oh I can't get it free anymore as had it free once before,they now want £14.99

How do I go about getting it for £2?

sistafromanothermista

There's an option on the site to pay for it (£2) but it's sent by post so not instant.
You could sign up to Noddle (that's free) just google it. xx

pencakes26

Did you have a contract with Tmobile? I defaulted on that many moons ago and the sold the debt to Lowell Portfolio so thats probably what yours is.

Noddle is basic but very good for a quick snapshot of your report. It also showed I was linked to an address Ive never heard of before which meant I could dispute it and get it removed.

If you've defaulted on any of your accounts it will stay on your report for 6 years and unfortunately they have a bad effect on your report.

Good luck with sorting out your debt and well done for having your light bulb moment before things got way out of hand.

pencakes x

con1888

I dont mind it coming in post will do that, thanks.

I do have contracts with T-Mobile atm but they are all upto date and I have to bad credit with them.

My debts are in the form of

Studio catalogue
littlewoods catalogue
vodafone

the three above I have not been paying towards.

Lloyds tsb bank loan which I am paying towards and have never defaulted on.

Hoping to be debt free in say 2 years which means I will be 25 and then if it takes 6 years to clear can buy a joint house at 31ish so still quite young. Atm partner owns his house that I live in.

con1888

Oh and thanks for the wish of luck, have said I will do this before but now I am serious about it now that I want on the housing market and have grown up a bit and realise whats important in life

Johnhowell

con1888 wrote: »

oh I can't get it free anymore as had it free once before,they now want £14.99

How do I go about getting it for £2?

Send off for your £2 Statutory Credit Reports - therefore not risking paying for a monthly service after the "free" initial period:

Callcredit:
http://www.callcredit.co.uk/media/53063/creditfile-app.pdf

Experian:
http://www.experian.co.uk/downloads/...t-App-Form.pdf

Equifax:
http://www.equifax.co.uk/Products/cr..._file_0310.pdf

I sent cheques, but you could send postal orders for the 3.

Equifax replied within 3 days, then Callcredit (although cheque still not cashed!) and Experian by the end of 7 days.

Good luck,
John