August Review - Credit diet: Working on the appearance
Its now time for the August review on my credit diet. Its not been all good, but far more possitive than it was before I started my diet! As Johnny Nash sang 'I can see clearly now the rain has gone
I can see all obstacles in my way.'
The inches are coming off!
Its all in the timing and thank goodness a loan has come to an end. I did gain a couple of pounds when I took my eye off the ball in June (birthday month!) and occurring very annoying bank charges....ouch! However, thanks to not having to make a payment this month through the cleared loan the charges are paid, the overdraft has been cleared and the account in credit with the scope to stay that way. I feel like the bank's nolonger the preditor and I will soon start the process in the attempt of claiming back charges. The challenging part is not reverting back to the ways of old. Will I continue to apply all I've learnt so far? The answer is 'yes' of course!! I have redirected the money that would of been spent on the loan. Its now split between 2 of the 3 remainding bad debts. 75% has gone onto the one with the highest APR and 25% on the second inline. Three bad debts may sound like a lot, but its a lot better than the 5 I had at the start of the diet!
It may not seem that I have been overly wise, because I could of opted to transfer my debt onto a 0% deal. However one step at time I haven't fully converted to logic - I am getting there! Through my internet research I started to take an interest in current situation in the housing market and thought I there maybe an opportunity for me to get on the property ladder in the near future. OK I know I need to walk before I can run, so I have revisited the entire plan, did a little more realistic cutting, and what I thought would take me another 2 years to clear, could infact be reduced to a minimum of 16 months. Although there is no gaurentee of what is around the corner, nothing will stop me working on my credit rating in the in the meantime.
I was neatly devo'd when I saw my score - not good, but through the reeducating ethos I was releaved that it can be turned around. I look at the top tips on the net, which seem to be:
1. ensure your on the electrol role
2. keep up payments
3. don't make too many applications for credit in a short space of time
4. close unused credit accounts
5. Monitor your credit report
Based on this I contacted my local authority because for some reason I was not on the electrol role, closed down 3 store cards that haven't been used for a good few years and sorted out a discrepancy on my report. So hopefully I should see some improvement by my next review.
Next credit diet review - December!