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  • FIRST POST
    • Onthewayup
    • By Onthewayup 18th Jul 19, 2:18 PM
    • 6Posts
    • 0Thanks
    Onthewayup
    Credit File Improvement.
    • #1
    • 18th Jul 19, 2:18 PM
    Credit File Improvement. 18th Jul 19 at 2:18 PM
    Hi everyone.
    Iíve just come out of a period of financial desperation. Long story short bereavement, sickness and redundancy all happened one after the other and I took a loan and a couple of credit cards in order to survive. Iím now out the other side and earning really well. My credit score is good but where it says I fall down is my level of commitment. As Iíve been paying the cards off Iíve been having the limits dropped so it still appears like I use a lot of my available credit.
    I currently pay £400 a month on a loan with £9000 left on it. I have one credit card (not interest free) with £6000 on that I pay £200 a month off and a credit card (again not interest free) with £3000 that I also pay £200 a month off. I can comfortably afford these repayments now and have been making overpayments for a long time.
    Iím at a point now where Iíve struggled for so long and the end is in sight so Iíd like to refinance things and reduce the amount Iím paying in interest. Iím scared to apply for anything in case I get declined. (I tried just over a year ago and was declined because of my level of borrowing even though I was going to use the loan to pay off the existing debts). But now Iím earning so much more Iím wondering if Iíd get accepted now. It seems crazy to be paying £800 a month on these debts when I could potentially get a loan to cover it all for half the monthly cost.
    Sorry for this being so long but if anyone has any advice for me Iíd be so grateful. Thanks for reading.
Page 1
    • Gary_Dexter
    • By Gary_Dexter 18th Jul 19, 2:19 PM
    • 5,836 Posts
    • 3,854 Thanks
    Gary_Dexter
    • #2
    • 18th Jul 19, 2:19 PM
    • #2
    • 18th Jul 19, 2:19 PM
    Post a SOA on the Debt Free Wannabe board.

    A loan is never usually the way to go.

    Work more, earn more, cut back on spending.

    The SOA will help.
    • Onthewayup
    • By Onthewayup 18th Jul 19, 2:31 PM
    • 6 Posts
    • 0 Thanks
    Onthewayup
    • #3
    • 18th Jul 19, 2:31 PM
    • #3
    • 18th Jul 19, 2:31 PM
    Gary thanks so much for replying. I have already been doing exactly as you said. Cancelled all non essential outgoings and Iíve been overpaying every single penny I can. Iím new to MSE so Iím afraid I donít know what an SOA is. Could you enlighten me please?
    • Gary_Dexter
    • By Gary_Dexter 18th Jul 19, 2:38 PM
    • 5,836 Posts
    • 3,854 Thanks
    Gary_Dexter
    • #4
    • 18th Jul 19, 2:38 PM
    • #4
    • 18th Jul 19, 2:38 PM
    Statement of Affairs - http://www.stoozing.com/calculator/soa.php
    • Onthewayup
    • By Onthewayup 18th Jul 19, 3:24 PM
    • 6 Posts
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    Onthewayup
    • #5
    • 18th Jul 19, 3:24 PM
    • #5
    • 18th Jul 19, 3:24 PM
    I’ve completed the SOA and, to be honest, it hasn’t told me anything I don’t already know. I’ve been doing the snowballing method for a while now. My priority now is to reduce my monthly payments rather than increase them. That’s why I wanted to consolidate everything into a fixed monthly payment now so I can set up the payment, let it run it’s course and pretend that the last 5 years haven’t happened.
    • Gary_Dexter
    • By Gary_Dexter 18th Jul 19, 3:30 PM
    • 5,836 Posts
    • 3,854 Thanks
    Gary_Dexter
    • #6
    • 18th Jul 19, 3:30 PM
    • #6
    • 18th Jul 19, 3:30 PM
    So there's zero outgoings you can reduce or cut back on altogether?

    No way you can work extra to bring in more income?
    • Onthewayup
    • By Onthewayup 18th Jul 19, 6:24 PM
    • 6 Posts
    • 0 Thanks
    Onthewayup
    • #7
    • 18th Jul 19, 6:24 PM
    • #7
    • 18th Jul 19, 6:24 PM
    Iíve reduced all my outgoings. Thereís nothing left to cut back on. Iíve doubled my income this year too. I now have £1500 spare income per month so like I said above I can comfortably afford all my repayments and have been overpaying them massively. Iím at a point now where Iíd like to keep a bit more of my money each month but donít want to only make minimum repayments. So, if I refinanced everything into one, lower, payment I could be paying out £500 a month on the debts instead of £800 and start to save some money.
    • Gary_Dexter
    • By Gary_Dexter 18th Jul 19, 6:38 PM
    • 5,836 Posts
    • 3,854 Thanks
    Gary_Dexter
    • #8
    • 18th Jul 19, 6:38 PM
    • #8
    • 18th Jul 19, 6:38 PM
    No keep paying them off as you are.

    There’s no need to consolidate if you can easily afforded the repayments.

    £1500 I’m assuming will make a sizeable dent?
    • Onthewayup
    • By Onthewayup 18th Jul 19, 7:38 PM
    • 6 Posts
    • 0 Thanks
    Onthewayup
    • #9
    • 18th Jul 19, 7:38 PM
    • #9
    • 18th Jul 19, 7:38 PM
    Yes it will. I just need to spend it on other things now. Car needs replacing etc. Thanks for responding. I appreciate it.
    • Ben8282
    • By Ben8282 18th Jul 19, 7:51 PM
    • 3,171 Posts
    • 1,735 Thanks
    Ben8282
    Hi everyone.
    As I’ve been paying the cards off I’ve been having the limits dropped so it still appears like I use a lot of my available credit.
    Originally posted by Onthewayup
    Why have you been reducing the credit limits if you know it is having this effect. You are making the problem for yourself.
    • Onthewayup
    • By Onthewayup 18th Jul 19, 8:07 PM
    • 6 Posts
    • 0 Thanks
    Onthewayup
    I didn’t realise it was having that effect. I’ve just found that out by coming on this website.
    • Gary_Dexter
    • By Gary_Dexter 18th Jul 19, 8:19 PM
    • 5,836 Posts
    • 3,854 Thanks
    Gary_Dexter
    But a cheap runaround.
    But don’t get a loan.
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