I wanted to make this post for a very long time but i couldn't face myself to write it because i wasn't ready to tell the world what happened to me when i was 16 years old, As it has nearly reached the time when i come out of debit after 8 years i wanted to make this post and explain the ups and downs and also the completions while being in debit. As young people are forcing them selfs in more and more debit i understand what they are facing every single day as i have been there myself for so long and into todays community where money is very low and wages do not cover any house hold bills it is very difficult time for everyone who is turning to credit for help.It all started with me when i was just 15 years of age and this is the worse time of anyones life to get into debit and deal with the hassle of people coming around your house and asking for your money and also demanding letters it was very hard to cope sometimes i didn't know what i could do.
My Story begins in 2006 when i just started collage and i was 16 and as i was going though so much at the time i ended up having a mental breakdown and where i was basically out of control and doing almost anything that i wanted and getting away with murder, Every night when i was leaving collage my first contact with credit came with mobile phones and back then all you needed was a chip & pin machine and it was so simple i just walked in our local Carphone Warehouse store and came out with a mobile phone in about 40 mins every single day, My mom said to me how did you get a full contract phone when your underage? I basically told lies about my age and thats how i done it and my mom knew that something was very wrong with me as i was coming home every day with new stuff and mobile phones. The next few months my behavior became worse and worse and i ended up also having things delivered to the house and having everything on credit and my mom just couldn't carry on with me anymore and i needed professional help, At the time i didn't know anything about credit and a credit score and what it could do you in the process, My mom asked me what was wrong and why i was acting like i was and she told me that i had to stop ordering all this stuff and then she said how are you gonna pay for all of this ???? I wasn't gonna because i was only having my weekly money from the government to pay for my collage essentials.
I stopped applying for credit and getting myself into more and more in trouble by the end of my collage course in September 2006 and i ended up having well over £15,0000 of debit that i couldn't afford to pay back and then the letters was coming though my door demanding final payment and someone was coming around to collect goods all the time and this wasn't fair on my mom and my step dad because they would of ended up taking everything that they own,I was seeking help from people afterwards after i was told that i was having a nervous breakdown and my local connections worker Jo who told me to keep all of my debit letters so she could help me with something and also to get me out of debit. My mom was also helping me at the same time and trying to get me out of this huge amount of debit that i had managed to run up, It was about 3 - 4 weeks later that my local connections worker Jo told me that i might have to declare myself insolvent and i didn't really understand what that was and how it would help me progress. My mom decided to take me over to CAB offices in Stroud to get everything sorted and i also had to keep the debit letter that i had coming though.I didn't take that long to get everything sorted and i cannot remember if a charge was made for me to go insolvent as if you had savings or something you couldn't do it so my local CAB adviser help me around that issue and on 8th September 2010 i was declared insolvent and in that time i wasn't allowed to apply for anything like credit cards and loads and mobile phones, It was so hard because i had letters still coming though the door and this stopped in a few months witch was so good and i was so happy, My court order was finally discharged on 8th September 2011.
It took a year for my case to go to court and get it sorted and then there was the huge long wait of 6 years before i could get my finances and credit back where it should be in the first place.Everyday for me was a huge battle because i had to face people in banks and phone shops and trying to get this and that and in the end i totally gave up, I had to also explain to some of the companies who i was trying to get credit with that i was insolvent and i really haven't got a good credit history,Sometimes when i saw other people having new phones and a credit card made me feel so down and upset because i knew that i couldn't have it because of my credit score and in the end i never felt so down over it because my credit score was completely damaged.
It was a long long wait and i can't believe that it is just around the corner and i am finally free of my insolvency order in a few weeks time (September 8th 2016) and i have had a few accounts that are still in default but i will be sorting them out very soon and i have learnt so much about credit and also money in the last 8 years of my life and i wanted to share my tips and what i have been doing since i was declared insolvent in September 2010..
My TipsDo you really need anything on a credit agreement / contract for 24 /12 months to buy a new phone or computer?
Will you have enough funds to cover your contract agreement for your phone each month?
When applying for a first contact mobile phone try with a sim only contract and build up your credit before getting into a contract for a iPhone for 24 months this saves so much hassle when applying for a full contract.
When apply for your very first credit card from any lender try doing a self checker before you apply as this could damage your credit score and with the self checker this does't effect your credit score at all.Do i need to pay monthly / weekly on a catalog to get clothes and shoes and pay so much each week back over so many months.
Keep a eye on your credit report every month or so to make sure that everything is in order and up to date with your accounts on.
Don't waste money on things if you really don't need it save it up for something that you really need.
Get a basic savings account / current account that doesn't charge on direct debits and overdrafts Nationwide accounts are one of the best for people who finds dealing with money very hard.
Pay everything you have and your credit score will improve and this even includes loans from pawn shops and other lenders as this will also show up on your credit report.Make a limit / budget for things you need to buy each month and try and get items in the sale this works out so much cheaper if your item is in the sale as this cuts down costs.
Only buy the things you need on eBay and don't go mad as i have done this and ended up loosing so much money and throwing it in the bin or charity shop.
There is a few simple tips that i have learnt since being in debit and i must admit that it has all worked and i have saved so much on things that i haven't need and with things on eBay you just have to be very careful and and keep a eye out on what you are spending, I tend to use eBay a lot now for things like Zoella Beauty and Tanya Burr cosmetics and black trousers as these are the very hard things to find and they might be more expensive then you might think. Some sellers will get you with there posting costs and it is a lot when you come to pay for it.
At this current moment in time i am still in the last stages of my insolvency and i haven't got any plans to get any credit cards / store cards as i am gonna wait for at least 6 -12 months because i already have about 3 - 4 accounts outstanding and i have nearly paid one of them off so i want to get them sorted out and then think about credit cards and things like that. I still find getting a mobile phone contract and other things on credit very hard and if i keep paying off my little debits that i have i will be back on track soon, I understand that i cannot change the pass and i wish that i never did what i did but i had to and i have learnt so much from it, I know my credit score will improve but it will take time and just want a perfect credit score.
