Need advice on Credit Rating

TLC_3

Hi Guys,

I need advice on how I can mend my poor credit rating. For the last 1 1/2 I've had some unfortunate circumstances and as a result this damaged my credit rating. I now have a number of debts outstanding and I really do not know where to start.

I moves house more than four times in the last 24 months and my creditor's, well at least some of them do not know where I live as yet. I'm so afraid because I'm now getting on my feet again and I desire to start paying back all my creditors. Too be honest I feel that some of them are already in the court but I realy do not know what to do. My debt now stands at £1700 and I only work part time because I'm a full time student in addition to this I've filled my taxes since last year to Inland revenue who owes me money and I can't seem to get an answer to them since last August. Pleeeeeeeeese need some sound advice as to who I can call or where can I start.:o

patwa_2

Hi. I'm sure the DFWs on here will be here with some personal experience to help you out but one of the things I've heard that can help as well as starting to cut down on the existing debt is to close down any unused credit/store cards. Part of rebuilding your credit history is showing lenders that you are a responsible customer (known as a low risk customer).

One way to do this is to have just one credit card that you pay off in full each month and use for your spending. Barclaycard is a good one to start as they specifically target people with poor credit, I have 4 cards but needed a 5th due to some problems with locks on the others by a certain company, had no problems applying for Barclaycard. I had already applied for two Balance Transfer cards the weeks before and been accepted - from the moneysupermarket.com credit card Smart Search this puts me into the 'Needs Improvement' category.

Sorry for going on like that, but as I said as well as sorting out repayments you'll also need to effectively start anew with building a history for yourself.

H.

bargainbetty

You could start by getting all your information together, and calling the CCCS (links are at the top of the board). They will advise you on how best to proceed, and help you with a repayments schedule.

You can also use the template letters on here (I don't have the link, but I know some lovely person will put it up) to contact all of your creditors requesting that they freeze the interest payments, stop any court actions and offer them an affordable payment plan. Don't be tempted/pressured into agreeing to more - you have to be able to live.

If you find yourself with extra pennies, throw them at the debt with the highest APR i.e. the most expensive debt.

Do advise all of the creditors though, unless the debt is over 6 years old. In that case, it's statute barred, so don't kick a sleeping dog. If you find yourself with money to spare later, go back and settle up then, for your own self-respect.

You could consider posting your SOA on here, and letting people make suggestions about how you can make/save money towards your debts.

I hope this all helps! Good luck x