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  • FIRST POST
    • Kir100
    • By Kir100 2nd Aug 18, 5:46 PM
    • 1Posts
    • 0Thanks
    Kir100
    20 year old - 1/5 credit
    • #1
    • 2nd Aug 18, 5:46 PM
    20 year old - 1/5 credit 2nd Aug 18 at 5:46 PM
    Hello.
    It hurts me to be writing a post in help like this but I need help.

    My credit is 400 something and I'm only 20.

    I'm in ~1000 debt which accumulated from missing one payment, not being able to afford late fees + payment and then it all snowballed.

    I don't know what to do at all, never taught any of this in school and obviously never had any experience with it being only 20.

    I have looking into a consolidation loan of 1000, but would I even be accepted?

    I have a full-time job as a junior web developer and earn around 20k

    I'm up to date with my phone and all that, I just now have two defaults on file.
Page 1
    • Willing2Learn
    • By Willing2Learn 2nd Aug 18, 5:54 PM
    • 1,833 Posts
    • 1,418 Thanks
    Willing2Learn
    • #2
    • 2nd Aug 18, 5:54 PM
    • #2
    • 2nd Aug 18, 5:54 PM
    Hi Kir100 and welcome to the forum.

    Who are the two debts with?
    How much is each debt?
    When is the date of default of each debt?
    How much can you budget monthly toward paying each debt?
    Do you owe anyone else any other money?
    Do you have an overdraft or credit card bills?

    Edit: Well done on asking for help. Budgeting are life-skills that you don't learn at school. Nothing to be ashamed about.
    Last edited by Willing2Learn; 02-08-2018 at 5:57 PM.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Sncjw
    • By Sncjw 2nd Aug 18, 6:11 PM
    • 1,969 Posts
    • 1,155 Thanks
    Sncjw
    • #3
    • 2nd Aug 18, 6:11 PM
    • #3
    • 2nd Aug 18, 6:11 PM
    If you can!!!8217;t afford the 1000 to pay off each month how can you afford to pay off the new loan. The rate might be higher than current debt.

    When you do consolidation loan your doubling your debt as the loan company won!!!8217;t know your going to use it to pay off debts. They will be assessing you on 2000 of debt.

    Why not go on debt free wannabe board and post a statement of affairs to see where you can cut back to help pay the most towards the 1000 debt
    • Gary_Dexter
    • By Gary_Dexter 2nd Aug 18, 10:03 PM
    • 2,760 Posts
    • 1,568 Thanks
    Gary_Dexter
    • #4
    • 2nd Aug 18, 10:03 PM
    • #4
    • 2nd Aug 18, 10:03 PM
    Ignore the made up scores and ratings for a start.

    You need to pay off that 1000 ASAP - NOT with a payday loan but by cutting back on spending.

    What are the other 2 defaults for and when were rhey registered?
    • Candyapple
    • By Candyapple 3rd Aug 18, 11:42 AM
    • 2,969 Posts
    • 2,352 Thanks
    Candyapple
    • #5
    • 3rd Aug 18, 11:42 AM
    • #5
    • 3rd Aug 18, 11:42 AM
    Hello.
    It hurts me to be writing a post in help like this but I need help.

    My credit is 400 something and I'm only 20.

    I'm in ~1000 debt which accumulated from missing one payment, not being able to afford late fees + payment and then it all snowballed.

    I don't know what to do at all, never taught any of this in school and obviously never had any experience with it being only 20.

    I have looking into a consolidation loan of 1000, but would I even be accepted?

    I have a full-time job as a junior web developer and earn around 20k

    I'm up to date with my phone and all that, I just now have two defaults on file.
    Originally posted by Kir100

    You earn 1.4k a a month after tax. You could clear the debt in 1 month (assuming you live with parents).

    Where does your money go?
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • sourcrates
    • By sourcrates 3rd Aug 18, 1:03 PM
    • 15,898 Posts
    • 14,945 Thanks
    sourcrates
    • #6
    • 3rd Aug 18, 1:03 PM
    • #6
    • 3rd Aug 18, 1:03 PM
    You earn 1.4k a a month after tax. You could clear the debt in 1 month (assuming you live with parents).

    Where does your money go?
    Originally posted by Candyapple

    If he`s anything like I was at 20, it`ll be fast cars, girls, and beer
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • sourcrates
    • By sourcrates 3rd Aug 18, 1:12 PM
    • 15,898 Posts
    • 14,945 Thanks
    sourcrates
    • #7
    • 3rd Aug 18, 1:12 PM
    • #7
    • 3rd Aug 18, 1:12 PM
    Hello.
    It hurts me to be writing a post in help like this but I need help.

    My credit is 400 something and I'm only 20.

    I'm in ~1000 debt which accumulated from missing one payment, not being able to afford late fees + payment and then it all snowballed.

    I don't know what to do at all, never taught any of this in school and obviously never had any experience with it being only 20.

    I have looking into a consolidation loan of 1000, but would I even be accepted?

    I have a full-time job as a junior web developer and earn around 20k

    I'm up to date with my phone and all that, I just now have two defaults on file.
    Originally posted by Kir100

    Hi,


    Forget the credit score, forget the consolidation loan, seriously, where is your income going ?


    You should write a letter of complaint to the two companies that have charged, you, ask them to refund the charges that have caused all the trouble for you, say you are aware they are entitled to charge you for late payment, but on this occasion could they make an exception, as it has catapulted you into a mire of debt, that you simply cannot afford.


    Mark your letter COMPLAINT, then it will be dealt with by the correct dept.


    If you don`t ask, you don`t get !!


    You then need to take a good look at your finances, make sure you budget correctly for your outgoings, and most importantly, pay on time, direct debt is best for achieving this.


    You really do not want to be getting into the habit of borrowing for borrowings sake, just try to live within your budget.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • Stoke
    • By Stoke 6th Aug 18, 2:27 PM
    • 2,980 Posts
    • 3,144 Thanks
    Stoke
    • #8
    • 6th Aug 18, 2:27 PM
    • #8
    • 6th Aug 18, 2:27 PM
    Is that Experian 400 or ClearScore? If ClearScore then 400 isn't bad for a credit rating for someone in their early 20's, although if you continue to miss payments etc it'll start to plummet. 400 on Experian isn't great.

    You need to cut back on things..... and it's hard. Nights out, meals, breaks etc. Get it paid and then reassess.

    Ignore the made up scores and ratings for a start.

    You need to pay off that 1000 ASAP - NOT with a payday loan but by cutting back on spending.

    What are the other 2 defaults for and when were rhey registered?
    Originally posted by Gary_Dexter
    Agreed. Don't pay with a payday loan. It's circular and you'll end up worse off.
    • foxy-stoat
    • By foxy-stoat 6th Aug 18, 4:08 PM
    • 3,221 Posts
    • 1,821 Thanks
    foxy-stoat
    • #9
    • 6th Aug 18, 4:08 PM
    • #9
    • 6th Aug 18, 4:08 PM
    What is your monthly spending?
    • Gary_Dexter
    • By Gary_Dexter 6th Aug 18, 4:13 PM
    • 2,760 Posts
    • 1,568 Thanks
    Gary_Dexter
    400 on any CRA is neither good nor bad
    • Superscrooge
    • By Superscrooge 6th Aug 18, 8:16 PM
    • 1,094 Posts
    • 794 Thanks
    Superscrooge
    With the OP quoting 1/5 they are probably referring to a 'Noddle' score of 400.

    As well as giving a credit score. Noddle also give everyone a credit rating out of 5 eg. 1/5 2/5 etc.
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