I'm in debt what should you do about it?
Don't bury your head in the sand
Recent research by Callcredit reveals that when it comes to managing our debts and at a time when consumer borrowing is at an all time high many of us are simply burying our heads in the sand. A recent report said that the current levels of personal debt are a "time bomb" that poses a threat to as many as 15 million households. Research by Callcredit shows that upwards of 60% of UK consumers simply do not know how much they owe, while 15% openly admit to not having a clue! You can use your credit report to see how much you owe as most of your credit agreements, including their current balance and limits, will be shown on your own personal credit report.
Start managing your way out
Use your credit report to start the process of checking out how much you really do owe and understand what credit you have available to you. Take care not to get in too deep by borrowing more than you can afford to pay back. Regularly check out your credit report to make sure you've not missed any credit payments and help to ensure that you maintain a good credit rating. It might seem like hard work to meet your debts head-on, but don't be an ostrich and bury your head in the sand. Now you've registered with us you can leave a message in our secure messaging centre and we'll do everything we can to help you out.
Should I consolidate my debts with a larger loan?
Seek advice before applying for more consolidation credit. In some situations, consolidation works, as you may be able to reduce the amount you are paying each month, but it will often mean that it will take you longer to repay your debts and you may pay significantly higher interest charges. If you do consolidate your debts, resist the temptation of re-using your existing credit and store cards once they are cleared - cut them up and reduce temptation. Never pay for debt advice - the Citizen's Advice Bureau, National Debtline and Consumer Credit Counselling Service all provide excellent free-of-charge services.
Should I sign up with a credit repair company?
Another question we are often asked is "How useful are credit repair companies?" Callcredit does not condone the activities of such organisations; they will often charge you to amend your information and the changes they make may not be valid. So, remember, if you have any queries about your report or would like to dispute any information we hold, let us know and we will advise you of the best course of action to take. In many cases we will be able to act on your behalf, contacting the data providers to raise your dispute.
