Save your credit rating

In the UK we have become known as a country that loves its credit cards.  We’ve been flexing the plastic for longer than has been good for us and now we’re paying the price.  The cost of credit is enormous.  If you have run up debts on plastic there are a number of actions you should seriously consider:

1. Cut up your credit cards.  Although it’s hard to do, you can’t afford to keep running up further debt when you’re unable to pay back what you already owe.  If you need convincing just look at how much you are being charged in interest every month.
2. Look for a way of amalgamating all your cards into one at a zero or low interest rate for a fixed period of time.  There are several good deals around that are worth the hassle and research involved in making the swap.
3. Talk to your creditors.  Inaction generally leads to letters and, over time, to County Court Judgements being served.  If this happens your credit rating is certain to suffer.
4. Get advice from one of the publicly funded or voluntary staffed agencies such as the Citizens Advice Bureau.  They have experts who will help you draw up a budget, examine what you can afford to pay and highlight where your money goes each week or month.  Understanding this fully is the first step towards becoming debt free.

If you want to go down the route of declaring yourself insolvent or bankrupt an Individual Voluntary Agreement (IVA) or bankruptcy will need to be administered by a licensed insolvency practitioner.  Look for advice from a practitioner that deals predominantly with individuals rather than companies as they will have the time and the expertise to handle your case.  Some offer free initial consultations.

Both IVA and bankruptcy will have a serious impact on your ability to get future credit and will mean you sticking to a plan of debt repayment over a relatively long period of time.  This may be the right way forward for you but always seek professional advice before you make decisions that can have a profound effect on yourself, your family and your home.  It makes sense to find out all the facts.

If debt has become very serious and there is no other way to pay it back than to sell your home, talk to Property Rescue.  They guarantee to make an offer for your property, regardless of where it is or what condition it is in.  Their offer is inclusive of legal fees on the sale itself and will mean you don’t have to pay estate agents costs. 

Don’t let debt drag you down.  You are bound to be concerned and perhaps frightened about your situation but talking it through with Property Rescue could provide you with additional options for a way forward.  Give them a call – it’s all in complete confidence and without any obligation.

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• Save your credit rating