We always seem to be in a bit of a pickle with our finances, it’s down to probably taking on more than we can manage with this house. It was not the cost of the house itself as such but the resultant renovations to get it in a liveable condition! As you sort out one problem you discover many more to throw good money at.
We do not have savings to call on or a back up plan if things got worse we just try and live month-to-month doing the best we can. If circumstances changed (through unemployment) we would seriously struggle, payments would be late or missed completely whilst we tried to find an alternative source of income and we could soon build up a poor payment history.
When you have a bad credit rating it can be tough to get finance, many companies won’t touch you with a barge pole, I can understand there reluctance but it makes getting back on your feet feel like a loosing battle. It’s disheartening seeing your finances unravel we barely make it out of the red each month; we do not have the security of a healthy bank account to fall back on when the dog gets ill or an appliance packs up.
We live hand to mouth every month, I vow it will be different but it never is. We earn just enough for the essentials and our current repayments, so I can sympathise with those who have seen their circumstances change and got into dire straits. It can happen so suddenly when you have no spare cash squirreled away, my parents have helped us out more than once. The in-laws too, when in our old house the boiler gave up the ghost.
Then if you find a new job more than likely you will need a car to get there; luckily you do have options there are companies that focus on car finance with bad credit so you can sort out getting a vehicle before waiting for your credit history to be repaired. We live quite rurally and rely on our car to get us where we need to be whether its activities for the boys, access to better facilities or appointments with hubbie’s work. Once you have a car its very difficult to live without one again. There are cut backs that can be made but for us giving up the car is not a possibility.
What can you do to help?
The first step is to see what your credit scores are like, take out a free trial just do not forget to cancel it afterwards (or get roped into any extra costs – I ended up paying £2.99 one month for some service as I was not quick enough to cancel and the woman was a bit pushy!). Then see if you can negotiate with the companies you owe money.
There is plenty of advice about taking control of debt available freely on the Internet.