How to Get Out of Debt if You Have Very Bad Credit ?


Very bad credit is the synonym of very pathetic situation and burden of debt makes it more annoying. The need is to start working on the solution, which is difficult but not impossible. You need to get out of debt and subsequently improve credit rating. Both are interdependent and affect each other in every sense.






Try to pay off all debts in one month if you receive country court judgement

Very bad credit situation is an easy prey to CCJ conditions. This is an even more intense situation. When you get a CCJ, your name goes in the Register of Orders Judgements and Fines. It shows in your credit records for 6 long years. However, with one smart step you can end the mess here only. May be you are not aware. If you pay off all the debts within one month after receiving the County Court Judgement, CCJ mark gets removed from your financial records. If you belong to this particular situation then try to pay off the obligations in the due period and you can literally get rid of your bad days forever.

Categorise your debts as priority and non priority


The art of prioritisation comes in use in every aspect of life. In debts, you need to segregate obligations in two categories.

1. Priority debts 2. Non-priority debts.
Priority debts are –

  • Home loans/ bonds, rent etc.
  • Court fines
  • Gas and electricity bills
  • Taxes
  • Child maintenance
  • Hire purchase agreements 

Not paying the priority debts can bring serious consequences for instance home repossession, imprisonment, court judgement etc.
No priority debts are –


  • Credit card debts
  • Payday loans
  • Overdrafts
  • Store card debts
  • Bank or building society loans
  • Water bill
  • Money taken from friends

In case of non-priority debts, you should first focus on paying the expensive ones. Especially those with high interest rates such as credit card payments. 


Apply for very bad credit loans from a specialised direct lender

If you have any idea about direct lending you will not feel stunned while knowing that very bad credit loans exist. Their purpose is not majorly similar to a loan only but to a tool that helps people repair their ruined finances. The lenders provide funds to the very bad credit scorers. The borrower pays the loan on time and with timely repayments, credit rating improves. Use the borrowed money to pay off the debts and also bring a boost in credit scores. The purpose is solved.
People apply for these loans with the aim to improve credit rating. These are the short-term loans with a small amount limit to borrow however, no obligation of guarantor required. Advisable is to approach the direct lender to avoid the need of any mediator or broker. To get exactly right kind of deal, apply for the very bad credit guaranteed loans with no guarantor and no broker. You can find these loans online only.

Make big part payments

Try to pay more than the minimum monthly payments on your debts. Doing this in the case of big debts can hugely lighten your burden on obligations. The interest rates get low and also the monthly instalments shrink in size. In that case, you can more aggressively work on making big part payments. This makes your credit rating increase faster and the finance industry notices this good change quickly. This opens door for a better financial future and you can dare to dream again.

The ultimate suggestion – Earn more money

Yes, absolutely. Improvement of very bad credit situation depends on how well you manage finances. For that, you need to pay the bills and expenses on time and for that you need money. From where comes the money???? Job, part-time jobs, freelancing, self-employment and all additional sources. What is your way to earn extra money, just explore it and earn as much as you can. For some time you may need to do more than one job like many other people out there. But if this hectic schedule is the cost of the peace of mind of tomorrow than it should not be a big deal.

Another vital suggestion – Spend less to pay more on debts

No one is saying that your happy days are over. You cannot go to movies, can’t do shopping, can’t have fun in amusement parks or cannot indulge in weekend parties. But, for sure the need to embrace serious self-discipline is there at least until you do not get out of debt. To prevent the occurrence of worst circumstances, you have to stay patient and composed for some time. However, rational approach is necessary for whole life in finances but sometimes it needs to be followed strictly.

Conclusion

Your deeds of past in financial affairs reflect in the mirror of your present. If you have done things wrongly in the previous months or years then change it now to secure your future from chaos. Implement the above ways to get and stay out of debt while you are in very bad credit situation. No effort goes useless and you will see this in the progress of your credit rating. 

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