Ms D asked about her options now the three credit card payment break has ended: I’ve come to the end of my 3 month payment freeze and as the card lender has kept adding on interest I have gone over my credit limit, so the first payment due was nearly £400. I contacted them as I couldn’t afford that amount -my partner is self-employed and not receiving any income due to coronavirus. They agreed … [Read more...]
Readers have asked a huge variety of questions in the comments below Debt Camel articles. From credit ratings and mortgages to payday loan refunds and IVAs...
Some of them needed such long replies that I have turned them into the articles that are gathered here.
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...]
A reader asks: Help! I have just been made redundant and I don't know how I am going manage, especially as we have debts. I'm only getting a few weeks redundancy pay. What should I do? A lot of firms are closing or making some staff redundant because of Coronavirus. If your firm has just closed suddenly, you may be worried about getting the pay for the weeks you have already worked, the pay … [Read more...]
A reader asked: Should I get a cashback card or one that gives you rewards? Or is a 0% on purchase card better? I will be able to repay in full most months I hope. The answer depends on what you want to use the card for... and if you really would be able to pay it in full every month. When is a cashback card better? If you repay the credit card bill in full every month then a cashback card … [Read more...]
A reader has a very common situation: I have £12,000 of debt on a couple of credit cards and a catalogue. Is a loan the best way to sort this out as soon as possible? It's not possible to answer that without a lot more details... but let's explore the options and see what makes some ways better for some people. Why do you want to do this? There are three main reasons: 1) You are fed … [Read more...]
A reader asked: In August 2015 a CCJ was registered against me for £211. I paid off the balance, but not within the month. I have bank statements to prove its been paid. On my credit report it shows the status as “active” even though I have paid it. I’ve contacted the debt collector multiple times but they say as it’s an old case it’s no longer on their system and they can’t help me. I don’t … [Read more...]
A reader, Mrs H, asked: I am thinking of applying for a Debt Relief Order (DRO) but I have a PPI claim in progress. If I am successful in the PPI claim will I still get it if I have the DRO? Many PPI claims sent in just before the end August 2019 deadline are still waiting for a decision. So this is going to be a common question over the next 6-12 months. And this applies to other sorts of … [Read more...]
A reader asked: I know a debt drops off my credit file 6 years after it was settled or defaulted. I just want to ask when I apply for a mortgage, can the lender dig up unpaid debts if they are no longer showing on my credit report? This is a common question. The answer is Yes, sometimes because a lender can see other information that may show the debts. Let's look at what the lender can see, … [Read more...]
A reader asked: Are there debt consolidation options for really bad credit? I have a lot of debt and I'm not sure how to start getting out of it with a suitable loan or a credit card. A credit card won't work There are a couple of "bad credit rating" offers at the moment (October 2019), but they are only for 6 months and you will only get a very small credit limit. And after the six months, … [Read more...]
A reader asked: "I have nearly £20,000 in credit card debts due to 8 years of gambling addiction. I asked several times to lower my interest, defaulted a couple of times and also they could see gambling on my account yet they still increased my credit limits. I was taking cash advances to pay for food. I have not gambled for 18 months now, but I am left with this horrible debt that I cannot … [Read more...]