Get out of debt

Get out of debt

Rebuild your credit

In the majority of situations, credit repair does not exist, beware companies who claim they can repair your credit score - they can’t!

However, being responsible with your money can.

Firstly, the obvious—make your payments on time and ensure that you don’t exceed your limit on credit cards.

Ensure that you are on the electoral roll, as this is commonly checked to prove identity.

Lastly, if you do not use credit, consider getting a credit card. Use it, but pay it off in full each month, this will boost your rating, and if you look for a reward card, you could benefit from cashback, airmiles and other rewards, which accumulate faster than you think when you are using your card regularly. Just remember to pay your balance in full every month. You can get a card even with bad credit, but only do this if you intend to pay your balance in full each month as the APR is very high.

Try Vanquis, who have helped many people with adverse credit get a card.

Credit agencies also make errors, so if you are declined, check your credit rating to ensure that they are not holding incorrect information about you. Check your credit rating with Experian or Equifax for free, just click on one of the links above.

It is worth checking both, as the records may vary between the two.

Boost your bank balance

Short term borrowing

Payday loans are becoming ever more popular for unexpected expenses or to get you through to payday.

This is easy and convenient, however, it is not a cheap way to borrow, and should not be used as anything other than a short term solution. But if you find yourself with, for example, direct debits about to bounce, the cost bank charges and the risk of your reputation with your bank can far outweigh the cost of this type of loan. Typically you will pay £25-£30 interest per £100 borrowed, and many charge a transfer fee.

Don’t lose sight of the fact that the balance is payable in full on your next payday, so ensure that you can afford this before considering borrowing.

Cash Genie offer a fast service with the money in your account the same day. They allow you to defer your loan and just pay the interest until your next payday.

FLM Quick are reputable and consistently offer a lower rate than many of their competitors. However, they do require a guarantor.

1 Month Loan is our favourite payday lender. They are easy to deal with, reputable and flexible. They make it easy to defer your loan for another month should you find yourself struggling, you can repay just the interest or part of the capital as well.

Deferring your loan will not affect your credit rating, nor your relationship with 1 Month Loan.

Text Loans are an innovative company from whom you can order a small loan via mobile phone. You can borrow £100 in minutes, this limit will increase if you continue to use them.

Wonga are probably the best known short term lender. You can borrow up to £400 and choose your repayment date. You can also pay off all or part of your balance at any time before this date.

Enter promotion code LZR 337 on your application for a free transfer.

The first step to sorting out your finances is getting out of debt. If your debts are manageable, set yourself a budget and pay off the most expensive first.

If your debts are out of control, stop burying your head and get help. Facing up to your problems is the first step to solving them.

Need serious help?

There are several agencies specialising in helping with debt. Visit www.direct.gov.uk for the Government’s latest advice, or www.moneysavingexpert.com for loads of contacts, help and advice.

Do you want to take control?

Check out your credit rating to see exactly how you stand. Click the banner below for a free copy of your Experian report. Set a budget and stick to it. See Moneysavingexpert for tips on how best to set one and how to stick to it.