Trying to keep up with bills and credit cards and loan repayments can be financially difficult and as a result, thousands of people have no choice but to legally declare themselves as bankrupt every year. A little under seven years ago in fact, my own mother had to do this herself.
The official “bankrupt” statusis removed by most companies involved in lending after a seven year time span and this should see your credit rating improve many years down the line. Although being “bankrupt” will not completely destroy your life, it will sometimes complicate your day to day life. Le me tell you how…
Events like Xmas have been harder to deal with in recent years, as purchasing gifts on credit from catalogues was no longer an option in the wake of being credit blacklisted and with seven children at home, this had become the standard way of dealing with the children’s gift wish lists (this might explain things, eh?) Purchasing goods or paying bills online became extremely difficult task as my mother’s bank refused to let her have an account with even a debit card attached, let alone an actual credit card.
It was really helpful that my mum was able to get a Vanquis bad credit credit card throughout her (imminently ending) period of bankruptcy, so her ability to buy on the WWW was not hindered too much.
Last month, mother decided that to apply for a 24 month contract with the Three (3) network in order to get her hands on the latest smart phone. Her application was refused after the network had completed a credit history check on her though, so she will be continuing to use her beaten up Nokia 5110 for the time being.
Mother has vowed to never again borrow on credit the best decision she could make considering the increased rates of interest for the previously bankrupt!Bankruptcy, Credit Cards, family, poor credit history