Recession adds fuel to bad credit problems

Aug. 29, 2010 - PRLog -- The recession is not over, its second wave has just started and it is affecting people in the UK who are struggling with bad credit, because credit is going to be even tighter, making it almost impossible to consolidate credit and get rid of their credit commitments. There are a few things you you can do right now, if you don't want to find yourself in a worse credit situation in a few years' time.

APR-s are  to go up as a result of the increasing inflation within the UK, and  prices are going to increase much faster than incomes, if you do not act now you will be too late if you do something about consolidating your finances. You have to act fast, and follow the guidance below to get shut of your poor credit.

Nowadays even people who have had a sound credit rating before are finding it hard to meet their monthly financial credit repayments, because of the high unemployment level and the increasing outgoings. But if you have had your bad credit rating for years, your job is even harder, and a few things to prepare yourself for the changes.

STEP 1
Admit your bad credit. You have to know that you are not left alone, there are a great number of people in the UK that are unable to pay their credit debt, and find this situation wearying.

STEP 2
You have to make a list of all your credit, listing the outstanding amount, term, and the approximate timescale you can repay it if you keep your current schedule.

STEP 3
You next have to look into the interest rates of the products, and see which one causes you the most problems in the end of the month, and which one's interest rates are likely to rise or the repayments go up.

STEP 4
If you find that your credit situation has somehow got out of control and your monthly credit commitments are over your income, you need to look into making plans to either increase your income b, reduce your monthly expenditure.

STEP 5
Get a copy of your credit file, to see what are the options available for you. It might take you a couple of days to dig through your 6 years of credit history, but it will worth it when you see clearly about what caused your bad rating. You need to double check that all the information within are correct and updated. If you have already paid off a debt and it still shows as an existing credit commitment, you need to contact the creditor to make changes on your credit file. You can obtain your credit file on the internet for free, and start the work right away.

STEP 6
Analyze your credit situation. See how bad actually is your credit rating, and what type of consolidation credit you might be eligible to apply for. If you have problems with understandig your UK credit report, there is a free e-book written that I offer for download that will explain every element of your credit file.

STEP 7
Start Consolidating. You will need to try and eliminate the most expensive loans or credit cards first, and putting them into one product that has more flexible conditions and lower monthly repayments. If you need help with your credit consolidation plan, do not hesitate to contact a free debt counseling service. They know the market and the conditions of the product, therefore will save you loads of legwork finding the most effective products for your consolidation needs. Also they can assist you set up a expenditure and a debt solution plan in order to painlessly and swiftly wipe out your bad credit.

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I have seen many people struggle with bad credit in the UK recently. We have to find a solution for eliminating debt and starting a new, debt-free life.
Understand your credit report and win the game! Free ebook reveals the secrets behind your credit file. http://www.solvemybadcredit.co.uk/creditreportsexplained.php