Hello, I am 24, and rent a house with my girlfriend and our 2 month old son.
I have massive bad credit, due to being silly with my money when I was 18. I had a loan for £7,000 for which I paid £200.00 off and then stopped paying. I also had outstanding debt for gas / elec, phone bills, mobile phone bills etc, which all went unpaid. Eventually I just disappeared, however my old mobile contract was passed to a debt collection agency who tracked me down, for which i am currently paying.
I have just signed up for Credit Expert to see where I am at, as I would like to apply for a mortgage soon (in 3 years) but would like to see what I can do to help myself. I cannot pay my loan now as we don't have that much money spare anymore, and don't want to get a bad credit loan, or contact the bank regarding this loan. I was told by my mum (a bank clerk) that after so many years, they write off the debt if they can't find you. Therefore I simply disappeared for many years.
I considered bankruptcy as an option, but how would this affect my partner, and my future? We buy everything in cash now, no finance etc: Also finally I have my bank account but its only a visa electron account, so despite having £1000+ per month in it from work, the bank says this wont improve my rating, any ideas?
I appreciate all the help anybody can offer. I know I have been silly in the past, but am sensible now, and looking forward to a bright future.