August Review - Credit diet: Working on the appearance

10 August 2008

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! Surprised

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!

Forward planningSealed

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.

Credit Report

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!