Tips for managing Payments to a Bad Credit Catalogue If you find yourself in a situation where your bad credit history is questionable, it means that you will miss out on getting a home shopping catalogue. But it does not imply that you are barred from such privileges forever.
What you can do to redeem yourself is to have a catalogue which approves all those people with bad credit rating.
Most importantly you need to identify yourself as to why you have a bad credit history before taking drastic measures in an attempt to fix this problem prior to start borrowing more.
Your bad credit does not have to last longer when you can take some steps in a bid to have your credit scores improved over time.
That is why the following tips for managing payments to a bad credit catalogue are important in this kind of situation.
At some point, you can find yourself at crossroads when it comes to catalogue repayments. That is when you need to try out on some action to restructure your finances. Such actions can range from short to long-term solutions which are all better compared to sitting back and taking no action at all. Take into account any of the tips highlighted below to help you in managing your payments to a bad credit catalogue.
Here are the tips:
Informal Agreement Informal agreement compels you to speak to any of your catalogue companies and inform them of your inability to make payments due to your financial hardship.
In most cases, this is known as oken gesture' and you can commit yourself to pay little by little until the whole balance is cleared. Even though it may sound like you trying to drag the repayment process, it will at least give you some little peace of mind until you come out with a better plan.
However, the informal agreement is not under any circumstances, a legally binding contract with your catalogue creditor. What it means is that your catalogue creditor has the liberty to opt out of this agreement at any given time. Consolidation loan It means that you can apply for a loan elsewhere ( large enough) in order to take care of all your combined debts into a single monthly payment.
In fact, this is a great idea if you have numerous debts which you can easily combine them into one major debt that you can manage without much of a hassle on your side. Even though it may sound like a good solution to your debts, consolidation loans may extend the time that you are supposed to repay all your debts so it is advisable to be more cautious when taking this option.
Balance Transfer
There are quite a number of credit cards as well as loans that give 0% an annual percentage rate(APR) for a given timeframe. In case the new catalogue creditor does not allow you to move your catalogue debt over, you can use the money obtained from your new credit source to repay the catalogue off. By doing so, you will be sacrificing the 0% of the APR deal.
Unfortunately, this will be lower than what the catalogue is charging. Mostly, the catalogue APR varies from 20% to 40% to help you save more on the interest repayments through the switching of creditors. County Court Judgement (CCJs) A County Court Judgement comes in when the debts do not exceed a certain amount where you will not be able to make your payments.
Therefore, your respective creditors can make applications to the courts so they may retrieve their money. The court, however, decides on the amount to be paid back after which you will be asked to make one payment to the same court to be distributed to your respective creditors. Creditors are then barred from taking any further action against you provided that you stick to the agreement.
Giving a lump sum Although this might be a better option for many people, it is important that you should first contact your catalogue to discuss the matter and see if they are willing to take a one-off lump sum to clear your account.
If your catalogue creditors do accept this deal, they will, of course, want to close it as fast as possible and may possibly terminate your account once the debt is fully settled.
Insolvency
Individual Voluntary Arrangement Advice (IVA) Insolvency comes in handy when the other options have failed and your debt is out of hand. The best you can do is to get some advice from experts who can provide you with the help you may need.
If the IVA is approved, you will likely make a single payment a month to your creditors. During all that time, your interest is frozen and any remaining debt after this transaction is completed is written off. Insolvency: Bankruptcy Bankruptcy is the most serious type of insolvency.
You can use bankruptcy as your last option for you. But you will need to pay before you go bankrupt and consequently, your debts will in the process of one year, be written off. If you can be in a position to make some contributions to the smaller amount of money, then you will have to take at least three years while making payments. Bankruptcy has a bad reputation for your entire credit score nevertheless.
Final thought
There are other solutions that you can employ if at all you are not in a better position to repay your catalogue bills. One of them is for you to prepare your expenditure list in the first place before anything else. Make sure that you work out your income each month and then discard anything that you feel might be draining out your income.
Your expenses might cover anything starting from your mortgage to travel expenses and groceries among others. While doing all these, keep in mind that you are finding the best ways to manage payments to a bad credit catalogue with the aim of being able to borrow again. Anything that you do to rectify your prevailing situation is of great benefit to you rather than letting the problem escalate to the point of no return.
Save yourself from this stress and look into those helpful tips (discuss to find a working solution for you).