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  ABOUT
BAD DEBT |
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1)
Contact your creditors and explain the situation, they
will be much more understanding than you think. So long
as they are getting paid some amount regularly they
will be happy. Agree an amount that you can afford and
keep to this.
2) Use a budget planner to control your spending.
Write down your in-goings and outgoings such as rent,
bills and income. The money that you have left can be
used to pay back your debts.
3) Prioritise your debts; some can be more important
than others. For example, debts that are secured on
property should be a priority as your property could
be taken away from you.
4) Get free help and advice from experts. Click
here for information.
It is important to try and keep up with payments
to creditors, even if you have to agree a lower payment.
If not you could develop a poor credit history which
will make it extremely difficult to borrow money in
the future and buy on credit.
Poor Credit History
When applying for a credit card the credit card issuer
will base its decision on 3 main areas:
1) Electoral roll: whether or not you are
on the electoral roll for your current address may
influence their decision substantially.
2) Length of Residency: how long you have lived at
your current address and whether you own or rent.
This is used to assess your stability.
3) Credit History: if you have a credit history (i.e.
other loans, cards etc). If you have a poor credit
history it is a possibility that many credit card
issuers will deny your application.
If you are refused a credit
card it could be due to any one or more of the above
reasons. The main reason for credit card refusal is
a poor credit history. After being refused a credit
card it is possible to enquire about your credit file
by applying to the Credit Reference Agency for your
record or contacting one of the companies listed below.
If you know why you have a poor credit history you
can work on improvement.
Checkmyfile
Equifax
Experian
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