Trying to cover all bills and credit cards repayments and loan bills can be financially disabling and this means that 1000s of individuals are forced to declare themselves as bankrupt each year. Over 6 years ago, my own mother had to do this herself.

The official “bankrupt” status is removed by most companies involved in lending after a seven year time span and this should see your credit rating improve eventually. Although the status of “bankrupt” will not completely destroy your life, it will sometimes make living it that little bit harder. Let me explain¦

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 visa card throughout her (imminently ending) period of bankruptcy, so her ability to buy on the WWW was not hindered too much.

Recently, my mum decided that she would apply for a 24 month contract with a popular network provider 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!

Technorati Tags: bankruptcy, Credit Cards, poor credit history, repayments

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