Debt Management and My Credit Rating?
Credit rating, this is a biggy. I have spoken to so many people in the past about using a Debt Management programme and when you get to how a credit rating can be affected, you can hear the other person back off and loose interest within seconds. Of course I understand the importance of a credit rating, how it can affect so many facets of our lives and just how hard it is to reach the big numbers at the top, and then to be told that to help them I am going to have to affect it in an adverse way – that’s a bitter pill.
But and this is the mother of all but’s…….with the best will in the world it’s impossible to have it all ways, something has to give. I remember a recent client explaining that three of her seven debts are with debt collectors, two missed payments to council tax and rent payable at the end of the month with little to pay it with if creditors get paid what they requested……….now, a 15 minute chat and financial review later I found that I could free up funds for the council tax arrears, get payments to her creditors and there would be money left for her rent. Great…”is this something that interests you” I ask, “what about my credit rating” she asks. As I said before, I really do understand how important it is but she went on to explain that what she really wanted was a loan and didn’t want her credit rating affected. The Lady didn’t use debt management in the end and I suspect that having debt with collection companies, her credit rating was credit worthy. I hope all went well for her in the end.
I think the point I am getting to is that we have to remind ourselves that sometimes we have to make hard decisions in order for life to get better, the Lady I spoke with hadn’t checked her credit rating and yet she still believed that the miracle loan may happen, if it did, it could be more borrowed money with interest to be paid rather than dealing with what she had.
Hi Debtsorter
I have just read your posting and really do understand what the Lady you wrote about is going through. I left it all so long before getting some help, I went to my parents first who told me to stay away from Debt Management companies as I would just get ripped off, ( I don’t think they even know what what they do ) so I kept applying for loans. I borrowed money from my parents in the end which I used to pay the debt off but now I cant afford to pay them every month. I try not to go round to often as we just argue. I am the last person in the world to give advise but if there is anyone out there struggling with debt, get it sorted quick as, don’t leave it to get out of control.
Nice site by the way – keep writing A++++. Ben
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I think credit rating is getting a lot more important in todays world. People are not willing to take the same risks as before the recession.
Hi there Dave,
your right about that, there were so many creditors pre recession that did just the basics in credit checks which led in part to the problems that we are all having to deal with. Creditors are now using the credit check system that has been in place for years in the proper way – if you can’t afford a thing, you don’t get anything. Hard but it will stop allot of people from over commitment.