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Taking The Credit by Roger Knight http://www.creditufix.com We see the adverts on TV telling us that credit is available for everyone. We're bombarded by the direct mail offering us credit and store cards with huge credit limits and it's tempting. Yes, it's very, very tempting. Many times, however, the outcome is not as sweet as the adverts would have us believe. In the first place sometimes applications are turned down. All our responses to bills from the moment we take responsibility are kept on record and when we apply for credit this 'history' is looked at. If you don't score enough 'points' it will affect you getting credit in the future. The chances are that if you have any default notices, County Court Judgements or Repossession Orders you'll also be refused. A lender will also consider the debts you already have and weigh them up against your salary to see if you can meet the repayments. If you are refused on these grounds there is little you can do and it is perhaps time to consider your financial position. There are times, however, when mistakes are made in the information that the credit company is working with and there are victims of fraud or even people who happen to be living in a house where someone has previously had a poor credit history that have the misfortune to be blacklisted through no fault of their own. You can, however, ask for a report that should explain the reasoning behind the company's decision, but sometimes this is not clear. If you allow yourself to be tempted and end up in too much debt don't think you can bury your head in the sand and by not responding to letters and phone calls think the problem will go away. Take the bull by the horns and contact the company to explain your difficulties. Don't borrow more money to pay off your debts, but there are professionals who can help such as Payplan or the Citizens Advice Bureaux. They will negotiate the repayment terms and the amounts that you have to repay each month will get smaller. They will also give you advice on how to organise your finances. The positive things about such a relationship are: you don't have to deal with your creditors any longer, you make one payment per month and this will take into consideration any changes to your situation but will only be what you can afford. If you have only run up debts with one company it's probably best to try to sort it out yourself. Try to negotiate a new agreement in which they extend the period but reduce the payments, but watch the interest rate. You'll have to be totally honest with them about what you can afford and why you've allowed the debts to arise but, on the other hand, don't allow yourself to be bullied by them and make sure you feel comfortable with the new agreement. |