Do you feel alone with your adverse?

Posted by

Most of our customers have credit issues in one form or another, from very mild historic missed or late payments through to recent Bankruptcy.

There was a report carried out by Pepper money (you can read it here) which has many interesting facts and figures…

  • Just under 1.1m people have had bad credit in the last 3 years and want to move home within the next 12 months.
  • 35% of people who have had bad credit have increasing amounts of debt since Covid hit.
  • Adverse credit affects all ages, from the sample in the report, but was at its highest for those between 25 and 44 (around 25%) and around 20% of 45 and over.

Other Statistics not covered in the report, but also relevant:

  • In Q3 2018 (so a little out of date), there were over 25,000 Insolvencies (Bankruptcy, IVAs and DROs) – that is over 8,000 people per month.
  • During the same period, there were also over 275,000 CCJs issued.

Do you still feel alone with your adverse?

Going off the figures above, it means 1 in 4 or 1 in 5 people aged 25 and above has had credit problems.

To put that into context, if your look at your neighbours to the left and the right, chances are at least one of them has had credit issues. Nobody talks about the problems they may be having, so it can appear that you are alone but the reality is far from the truth.

Credit problems could in theory fall into a number of categories, not knowing – you may not have received a letter through the post or maybe it slipped your mind. It could be more than there was an inability to pay, maybe you were made redundant or were ill and unable to work or it could be that you were unwilling to pay and so were in dispute.

Unfortunately all lenders will assume your credit report is correct and even if you are in dispute, the lenders will still assume it is a valid debt.

Our customers

We have customers from all walks of life, people working part time relying on things like Universal credit through to people on 6 figure salaries. There is no standard type of customer and the credit problems vary just as much from mild and historic adverse through to ongoing credit problems.

The situations we see vary so much but generally fall into one of 2 categories:

  • Youth – We all have a past and we all did things back in our younger days we maybe would not do now.
  • Life – This could be anything, redundancy, ill health, relationship breakdown. We are not robots, things crop up that may throw us sideways. That may mean other things take priority over your catalogue bill.

You only need to look at the Success Stories on our site to see you really are not alone and we have most likely seen similar situations and probably worse. In nearly 10 years of being Mortgage broker, it is becoming less and less often we come across something we have not seen before.

Next steps?

Get in touch. Lets have a chat. The idea of this post is to make you realise you are not alone, we have probably seen it before and you are safe to have a chat without being judged.

We want to hear what happened, if you think it is far worse than we will have seen before GREAT! Come and test us.