The BBC series Britain’s Streets of Debt paints a frightening picture of a nation owing millions more than it can afford and often driven to despair as a result. But there are simple, sensible ways to avoid the debt trap and build a healthy financial future – and they start with understanding your credit report.
It’s hard to imagine 21st century life without credit cards, loans and mortgages. Offers of credit are everywhere, from direct mail to newspaper advertisements to leaflets in shops and it’s easy to see how people can get carried away.
If you want to avoid piling up a mountain of debt – or to pay off the debts you’ve already accumulated – the answer starts with common sense.
First, take a good look at your credit report. This is your personal financial history, detailing the credit cards, loans and mortgages you have, your repayment history and other details, such as any court judgments against you.
That will enable you to see at a glance what you owe, and to whom – and how well you are coping. Sometimes, it acts as a wake-up call. On other occasions, it can show that you can afford to take on more borrowing. Looking at it regularly will enable you to keep tabs on your financial management.
The easy way to see your credit report is to take advantage of a 30-day free trial of CreditExpert, the credit monitoring and identity protection service from Experian, which is the country’s largest credit reference agency.
Click here if you'd like to find out more.
Remember, your credit report changes as your finances change. For example, repaid debts will be registered and missed payments will be added to your report, so a once-a-year once-over isn't enough to get the whole picture.
Regular visits give you the latest situation and help you to be realistic about your financial ambitions. This also means that you can check that all the information is accurate and correctly reflects your circumstances.
