Multiple CCJs and Defaults

BobbyDazzler21 · 13 July 2019 at 4:12AM

Good Morning everyone,

Right I don’t know where to start, basically since il say 2013 i started taking out payday loans, credit cards and overdrafts and got really silly with my finances and am suffering the consequences now. I take obviously full responsibility for it but I just need some advice to what to do and where to start.

As I speak now I haven’t repaid any of my debts back and I think I’m in about well around 10k debt, I have 3 CCJs and multiple defaults.

My credit score on Experian says 76 this is absolutely disgusting and horrendous and my own bloody fault, but now life has really kicked me in the face and I gotta reset and clear my bills. I have found a beautiful girlfriend and we are expecting a baby at the end of the year and of course she is worried for me because how bad my credit is and all my debts problems which is gonna be a massive problem if we wanna rent for bigger house when baby is born or when we wanna get a mortgage so I’m really scared and need some advice about this also.

Do I put all my debts in to one and pay as like through a debt consolidation?
Do I focus on clearing the CCJs first?
Do I clear the Defaults firsts?

I’m super confused because if I focus on clearing the CCJs first I fear the one of many accounts I have defaulted on may well go in the same direction so I’m super confused and would love a little bit of advice from you guys.

I will be able to start paying around £500 a month towards my debts but just don’t know where to start and what to do.

Thanks for listening, fingers crossed I hear some feedback.

Willing2Learn · 13 July 2019 at 7:42AM

Hi BobbyDazzler21 and welcome to the forum

Firstly, congratulations on having a baby on the way. You and your girlfriend have got lots of fun times ahead!

Secondly, are you sure that the payday loan (PDL) companies were responsible with their lending? Lots of people have successfully claimed 'irresponsible lending', with PDL companies giving people loans when they were clearly unaffordable. You might also be able to claim too. Have a good read of the DebtCamel article linked below. It includes letter templates to make the process easier for you.

DebtCamel article - How to get a payday loan refund

Thirdly, ignore your credit score, as it neither seen nor used by any lenders and is a waste of time.

Fourth. Whatever you do, don't get a consolidation loan as it only leads to a doubling of debt for people who have not yet learnt how to budget and manage credit account successfully. But don't worry, as it is relatively straightforward to learn the required new skills.

Fifth. To help you learn the necessary budgeting skills, I recommend that you head on over to the Debt-Free Wannabe (DFW) board where you can post a completed Statement of Affairs (SOA). Just remember to click on the 'format for MSE' button near the bottom of the form and then copy/paste it over to the DFW board. Then you will get loads of advice, guidance and support to help you, your girlfriend and your baby to build a good life together, hopefully free of debt.

sourcrates · 13 July 2019 at 2:00PM

Hi,

Would you qualify for a debt relief order ?

You say you have £500 available with which to pay creditors, but have you budgeted correctly, especially with a new baby on the way, your costs will soar, your partners income will reduce as well with maternity, all these things need to be concidered, check out my link to stepchange :

https://www.stepchange.org/how-we-help/debt-relief-order.aspx?

BobbyDazzler21 · 14 July 2019 at 6:25AM

I have actually been looking at a DRO and how things stand at the moment I would definitely be eligible for one but the issue is I am moving back to my parents house in a month or so, so that will leave me more than £50 a month available which is frustrating in ways because this DRO sounds perfect for the situation I’m in.

Is there anything similar like this? I was reading also about a IVA but again I’m not sure this is what I need to do.

I don’t mind if these stay on my credit file for 6 years as I already have 3 CCJs and plenty of defaults so I’m not making my credit worse, I just want a way too be debt free.

And the £500 a month I was talking about was because I will be not renting anymore and just paying my parents board money and few bills, this is not including any payments to any of my debts at all. If I actually put my monthly payments in outgoings for my debts from what they expect me to pay for the CCJs etc... does that come into place for my outgoings for applying for a DRO?

Also after some time I will be moving in with my partner in a new apartment/house and my funds will be bare minimum again, and my debts will just always be there. I just feel like so lost and don’t know who to contact or what to do.

faversmon · 29 September 2020 at 10:59AM

To WillingToLearn
Why do you say the credit score is a waste of time and to ignore it ?

D3xt3r5L4b · 29 September 2020 at 11:15AM

faversmon said:

To WillingToLearn
Why do you say the credit score is a waste of time and to ignore it ?

Because it is. No lenders ever see them

faversmon · 29 September 2020 at 11:52AM

So what's the point in having them ?
Is there another purpose for their existence ?
And how can lenders assess anything if not by some type of scoring ?

D3xt3r5L4b · 29 September 2020 at 12:17PM

faversmon said:

So what's the point in having them ?
Is there another purpose for their existence ?
And how can lenders assess anything if not by some type of scoring ?

Marketing gimmick to upsell you unnecessary “improvement” products and subscriptions.

Lenders look at the actual data in your files not the made up numbers.

jimbo26 · 29 September 2020 at 12:26PM

faversmon said:

So what's the point in having them ?
Is there another purpose for their existence ?
And how can lenders assess anything if not by some type of scoring ?

Because many people, you included think they are important, and CRAs make money selling you products to improve the score or to monitor it.

faversmon · 29 September 2020 at 6:28PM

Jimbo
You'll have to exclude me.
I'm not signed up to any credit reporting agency.
I had heard so much about credit scoring companies that I thought I would ask as to their importance
Have no credit and/or credit cards but a mountain of debt and lots of CCJs

sourcrates · 29 September 2020 at 10:11PM

Read the sticky at the top of this forum.

Multiple CCJs and Defaults

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