Card debt causing poor credit

Rocca22

Hi,

I ha e around 3k of debt on 2 credit cards and an over draft, this doesnt seem much but currently Im in part time work and I also claim Universal Credit to help boost my earnings as they are so low. I would really like to start paying off this debt as my credit rating is the lowest it can ever get and Im worried I may never get any future credit. Im 44 years old so im feeling really worried about my future.

What would my options be, ideally a debt management plan would be ideal? 

Thanks in advance.

R

fatbelly

Probably. You know that you can get free dmps through stepchange or payplan.

If you want further advice from us then a statement of affairs would help (link is to a calculator)

Why do you say that your 'credit rating is the lowest it can ever get'? Does your file have defaults, ccjs, insolvency?

Rocca22

Hi, my credit is the lowest due to miss payments on these debts. 

fatbelly

You're clearly struggling. Can you do a statement of affairs?

Rocca22

Ok I can do that, what do I do when I do a statement of affairs how do I send it to you?

fatbelly

You just copy and paste it into this thread - it's all anonymous and everyone is helpful.

Rocca22

Apologies I cant seem to copy and paste it

Rocca22

Is this ok?

EssexHebridean

At the bottom of the SOA it has a "format for MSE" option - you need to use that, then copy and paste. 

I'd also say that you're approaching this the wrong way, IMO. Trying to pay off debt to facilitate running up further debt in the future is not a healthy way of looking at things, yes, you may well clear the current debt, but there is every chance with that mindset that you will be back here in a few years with double the amount, then a few years later with double THAT amount, and so on. 

Try to adjust your thinking - clearing the debt you have currently will free up your disposable income (which will hopefully increase when you are able to resume full time work) to enable you to save for things rather than using credit in the future. It would also improve your credit history (which is the thing you actually need to be concerned about - I could tell you right now that you have a "Credit score" of 24,765 - that has precisely as much real-world relevance to anyone other than you as the numbers you're looking at on the credit reference agencies currently) in order to assist you should you need to get a mortgage, or other "good debt" for example a loan to fund some training for work, or a loan for a car which was needed for essential travel. 

Rocca22

Hi thanks for you reply, yes I totally get what you are saying, Im not looking for any other credit however in the future I would like to be able to do exactly as you said, ie. Car, home loan for training. 

Problem is I cant get any of that with my poor history. Its happened in the last 2 years (lack of work as I was self employed in the fitness industry) work is picking up but its probably 75% down on 2 and a half years ago.

sourcrates

Rocca22 said:

Hi thanks for you reply, yes I totally get what you are saying, Im not looking for any other credit however in the future I would like to be able to do exactly as you said, ie. Car, home loan for training. 

Problem is I cant get any of that with my poor history. Its happened in the last 2 years (lack of work as I was self employed in the fitness industry) work is picking up but its probably 75% down on 2 and a half years ago.

Nothing lasts forever, defaults etc will disappear after 6 years, the system is designed so that no one pays for bad money management forever.