Debt Archives

Getting out of debt

Practical articles about the different debt options, which might work for you and different ways of dealing with creditors

“Will a credit builder card improve my score?”

A reader asked: I’ve recently paid off my 2 defaulted credit cards and I have been paying into Loqbox for the past 4 months (£70). I got an email from Clearscore saying I can get a Capital One credit card. This is the first time in a long time that I have been offered a credit card because my credit has been so poor but it is slowly improving. Should I apply for this? If I do what is the best … [Read more...]

Sunny – some loans written off & the rest sold to a debt collector

The administrators say people may be allowed to submit claims in November 2020, if sufficient funds are available in the Administration for a distribution to be made to unsecured creditors. The administrators will also explain then what people who have already submitted claims, or who had claims agreed but not paid when the company went under, need to do. But that "if" clause is important. The … [Read more...]

Lloyds & Halifax overdraft fees higher if your credit record is poor

In July 2020, Lloyds, Halifax and Bank of Scotland (BoS) increased their overdraft charges and a month later people are starting to see the full cost on their monthly statements. This is the fourth change to the banks' overdraft charges since 2017. The new fees are higher for customers with a bad credit rating. This is unfair in several ways. So what can you do if you can't afford these … [Read more...]

“Will paying off debt improve my credit rating?”

A reader asked if his credit score would improve if he paid off some debt. First a useful warning from Experian: There’s no one credit score or magic number – different lenders score differently. But a good place to start is by looking at what exactly is on your credit records. There are three credit reference agencies in Britain and you have to check all three as they may have different … [Read more...]

10 things you should know if you can’t pay a tax bill

CORONAVIRUS UPDATE Any self-assessment payments on account due in July 2020 that weren't paid, will automatically have been deferred until 31 January 2021 without penalty even if you did not ask for this. The deferred self-assessment payment will then be due at the same time as the normal January self-assessment payment. If you know you won't be able to pay these, phone the HMRC Self … [Read more...]

Found out you have a CCJ? What can you do?

There are three ways you may find out you have a County Court Judgement (CCJ): you get a letter from the court; the creditor tells you, asking for payment; or you see it on a credit report - possibly after you have been unexpectedly rejected for credit. A CCJ is a decision by a judge that you ("the defendant") should pay someone ("the claimant") an amount of money. In mid 2022, there … [Read more...]

COVID-19, financial decisions & those tricky exponential numbers

This is a guest post by David Steele, Policy and Research Manager at The Money Charity (currently furloughed). He was previously Policy Manager Financial Services for Age UK and Head of the Research and Statistics Unit at the UK Film Council. This blog is written in David’s personal capacity and does not necessarily represent the views of his current employer. With the Sunday … [Read more...]

How to improve your credit rating after a DRO

A Debt Relief Order (DRO) lasts for one year and then your debts in it are wiped out. But it shows on your credit record for six years. This article looks at what should happen to your credit record during the DRO year and after it has finished. Some of your creditors may have go tt this wrong, you need to ask them to correct any problems. You can start to improve your credit rating after … [Read more...]

Debt and mental health problems

Even a "mild" problem with depression, anxiety or other mental health issues can make it harder to manage your money. Reading letters, taking decisions, paying by a deadline and talking to creditors may feel like impossible tasks. One in five people with mental health problems are in problem debt - that's more than three times the rate as people without mental health problems (5%). And half the … [Read more...]

“Must I pay a debt that’s not on my credit report?”

A reader asked if she has to pay a debt that she can't see on her credit record. Many people think that checking their credit record is a good way to get a complete list of their debts. And they look forward to a defaulted debt disappearing after 6 years because then they don't owe the money anymore. These are myths - and although they sometimes are right, they often … [Read more...]