Horrific credit rating

woollisox

Hi all, I just need some advice on how to sort out this mess I seem to have got myself into.


When I was 18 I took out two catalogues with Littlewoods and 24studio. I, being the irresponsible idiot I was back then, neglected to pay them and I forgot about them until 2 years ago. Unfortunately, I was at university by this time and I have only been able to make the smallest payments (currently £5 each per month). There is also a Halifax overdraft I took out at this time which was £200. I thought I had closed the account down as I had sorted the overdraft and then returned 2 days later and was told the account was closed. I think I only had the account about 2 months. Unfortunately, the morning I went in to close the account, the £5 monthly fee had been taken out. Two years down the line, I start getting letters asking for over £900, which I argued with Halifax, eventually accepting to settle at £650 in order to avoid court proceedings.
Now, I am at the point of graduating university, I have managed to stick to a £600 overdraft the entire 3 years with minimal student loan and no other credit being used during this time.
However, I recently discovered a debt to my university of nearly £400 (from a fine in my first year for leaving accommodation early) and have been told that I am unable to graduate unless I can pay for the fine. I have spent the past two days trying to sort some kind of credit as I figured that now that I have left university and have a job (part-time for now, but will be full-time come September) that I would take out a loan of some kind and pay off my overdraft (£600), university debt (£400), my Halifax account (£550), Littlewoods (£190) and Studio account (£260) at the same time. The total is exactly £2000 and I was hoping to take out a loan that would enable to pay all of these off and then have one repayment to make per month which would be more manageable.
However due to Studio constantly changing my creditor, I have defaults on my file. My "credit agreements" on Equifax is in red and I have been able to secure any sort of financial help. I have been told by stepchange that I do not have enough debt to be considered as needing a consolidation loan and I apparently am also too young (I'm 22). I already realise that it is unrealistic that I will be able to get a mortgage until I'm at least 27, and I'm hoping to have sorted this mess out and saved a decent deposit by then.
I'm hoping someone has some advice, or a suggestion on where to turn at the moment.


Thanks

atolaas

It sounds obvious, but have you told your family about your financial problems? They maybe able to help raise the money and you'd be able to pay them back. Its better than owing a bank!

woollisox

My family are very financially unstable themselves, if I'm honest (probably more so than me!) and so are unable to help me. I think the most I would be able to ask for is about £20 and they would expect (maybe even need) that back.

greenorange

I think you need to head over to the Debt-Free Wannabe board and post all of your debt, outgoings and income, and hopefully someone will be able to help you out.

Have you spoken to your university about your circumstances?

woollisox

I have spoken to my university, and they offered me a plan of paying £200 this week and £200 in two weeks time, which is completely out of the question for me at the moment. As I don't get paid until the end of July/beginning of August I now have no money coming in until then. I have just enough in my account to cover the last bit of rent I have to pay for my current university accommodation.
I just feel a bit like I'm up a creek without a paddle right now.
I will post on that board though, thank you for the advice

Joe_Bloggs

@woollisox
Contact your student union and have the best and brightest help you negotiate a path that is acceptable to all parties.
J_B.

woollisox

Can the SU get involved? As far as I was aware, it was a matter between the university and me. If they can, brilliant. President of the SU is a pretty good friend of mine and can argue a case like no one else I've ever known!

Joe_Bloggs

@woollisox
Research all you can about being a debt free wannabee to demonstrate to others that you are committed to a plan of repayment. (Statement of affairs etc.)

Ask what the union can do for you. Seek advice via the official union channels and not through the president. Make an effort to demonstrate some approach to financial acumen in the future.

J_B.

jonesMUFCforever

In reality what can the University do to you?
It is impossible to get blood out of a stone - forget trying to get any new credit to consolidate - you will not get it.


Please do not go down the route of trying these pay day loan companies - some will bleed you dry with brokers fees and you still will not get the money.


Put it in writing what you can afford even if this is only £1 for now with increased payments in September after your first salary.


I have to say though (I know you are a new poster) but you really need a good shake (as my mother used to say) - you cannot keep putting your head in the sand about debt. Your post should be your lightbulb moment - make today the day you start a plan to be debt free.

BillJones

jonesMUFCforever wrote: »

In reality what can the University do to you?

They can refuse to award his degree, as they seem to be intending to do.

woollisox

This is the day I have "woken up" so to speak. I understand that I was reckless with credit before university but I feel like university has taught me how to be more careful with my money. I do keep up with all of my repayments and I was successful with getting my first mobile contract in September and there has not been a single late/missed payment with it. This debt with the university has shook me a little and I'm finding it difficult to know where to go from here.

I'm also a female. I find it very interesting to know I type/talk like a man!