I just feel so helpless.

ilikemalk

I have just applied for a pay monthly phone and found out that my credit score is so low they will not even offer me a sim only contract.

I messed up big time in uni, racking up £2500 of pay day loans which I defaulted on and am now paying back each month.

I missed a court payment which was handed to me for not providing a producer and am paying that back each month.

I have also had a problem where credit was taken out in my name by a family member to the sum of a couple thousand, which has been paid off by the relative.

All in all, I feel so helpless, I am only 25 and have no idea what to do. I feel like my whole life will have this hanging over my head and I don't think i can handle it.

Is there any hope in me ever getting my credit score back up to a healthy level?

I was also looking to move out and rent in the new year with a friend. (My spending habit have changed a lot in the last year an a half and i can support myself properly now.) How will my poor credit affect my chances to rent?

I have also just sent off for a credit report on experian to see how dire my situation is.

Does anyone have any advice? I just feel so stuck.

kb_soma

Hi ilikemalk, sorry to hear your situation. Have you sought any advice from National Debt Line? They are always a really good place to start.

Two years ago, I was feeling completely helpless and I called them, it's really nice to have an understanding voice on the other end of the phone.

Freephone: 0808 808 4000
Monday – Friday 9am-9pm
Saturday 9.30am-1pm

I am now two years into my debt management plan through CCCS, they are really supportive and helpful. NDL assigned me a company to help me with my debt problems, and the help is free.

rizla_king

Defaults and CCJs only stay on your report for 6 years so eventually you will be ok.

its_maths_not_magic

I couldn't just read and run. The best place you can go for advice is the national debt line. Their contact details are in the last sticky of this part of the forum (I think its called 'where to go for help' or something similar).

I've delt with them in the past and they are lovely people, who are there to help and not judge. They can probably give you better advice than I can. There is also step change, who can help you with debt repayment. They are also very lovely people.

Try not to feel too despondant. Yes you are young, but that can also work to your advantage - you have time to repair the damage and improve your credit rating. There is also a great budget tool on this site to help you create an appropriate budget. Or you can post a statement of affairs (SOA) and the members here will try and point out places in your budget that you can cut down - there is a template you can use here, I'll see if I can find you a link. You seem like you've changed your spending habits already, which is always a good thing, so you don't have to make the same mistakes and find yourself in this position again, once this is sorted. Good luck on your journey.

its_maths_not_magic

https://forums.moneysavingexpert.com/discussion/562271

Heres the place to start, this will take you to the budget tool and SOA tool.

National_Debtline

Hello there,

Sorry to learn about the situation, it is one that you'll be able to get sorted though. As the others have mentioned please have a go at completing your statement of account - This will ensure you have enough money to meet your essential outgoings, food and travelling costs etc. You'll then be able to see what you might have left over to pay towards your debts. There are various options open to you - these generally depend on whether or not you are able to meet your contractual minimum payments or not. If you can compile a definitive list of all of your debts that would be incredibly helpful too.

Here's the statement of account calculator:
http://www.stoozing.com/calculator/soa.php

From the information you have provided it appears that you might hvae a Magistrates' court fine that you're currently paying, could you please confirm that? If you do have a fine it's vital that you treat it as a priority as non-payment can create further difficulties + extra costs.

Please do post up your statement of account as this will allow us all to give you further pointers about the best route for forward for you.

Best wishes,

David @ NDL.