So here we go ... debt free to be able to remorgage

doglover34

Ok so I thought I'd start my own diary...I'm overwhelmed after reading the diaries on here and thought what a fantastic way to be accountable for my mistakes and try and get out of this hole I'm in. So here goes...

I own my own home. In December 2020 I was fortunate enough to move to a new place (I needed to move for personal reasons) but due to some 6 missed payments on a credit card (I don't know why I didn't pay) and a default with eon (of which I had no idea), I had to use a lender with an extortionate amount of interest (bluestone). I'm lucky that I'm a high earner and that they took a chance on me, but what would have been an £1100pm mortgage is now a £1900pm mortgage!! I'm wasting away £800pm on my stupid mistakes and its making have sleepless nights.  I'm desperate to get to the end of the 2 years fixed fee so I can get back on a better rate with a high street lender. My credit rating is now back in the 800s (was originally 465).

To do that I need to 1) Not miss a payment on any outgoings and 2) pay back the last of my borrowings.

Ive spoken to a few FA and they suggested keeping 1 credit card with a low balance and that's it. So, I'm trying my hardest to clear all the balances on my credit file...Its getting me down as my disposable income is low to do it. I guess id just like some encouragement to crack this nut!

Ive saved 2k and now its time to pay back ... do I go for the higher balance or the lower balance ... all the interest rates are the same ... HIGH!

Thanks for taking the time to read... 

Hazelnutty

Hi @doglover34 Good luck with your plans! I've also got one eye on remortgaging (my 5-year fix ends next year) so clearing my credit card is a priority for me to be able to get a good deal