Tips

Making sure you are responsible for all your debts
It is important to check that you are actually responsible for all your debts. A husband and wife are not responsible for each other's debts unless they have both signed the agreement (except for Council Tax), and you cannot inherit a dead person's debts.

Be fair but strong willed when dealing with creditors
Get in touch with your creditors immediately to explain your difficulties. Apart from giving priority to those debts which endanger your home, fuel supplies or liberty explain that you will be treating all creditors equally.
Don’t give up trying to reach agreement with your creditors even if they are difficult and refuse to be threatened or bullied into making promises which you cannot fulfill.
Document everything. Keep copies of all correspondence, financial statements etc. and records of phone calls

Repaying the minimum each month is now a credit risk.

People who have debts up to the limit on several credit cards but who repay the minimum due each month have not shown up as credit risks until now - but they will be highlighted under a new Experian facility for lenders

Use of credit scoring by car and home insurance companies
Car insurance companies and home insurance companies are claiming that credit scores are essential to making sound underwriting decisions. They say credit scores are better predictors of the likelihood of someone filing a claim than a driving record is. Likewise, the home insurance companies claim that people with low scores tend to file more property damage claims and live in neighbourhoods with more crime than those with higher scores.

The difference between secured and unsecured debt.
Secured debt means the creditor (or person) you owe money to has the legal right to repossess the goods or property that the loan is secured against. Examples of secured debts are mortgages, secured loans on property or Hire Purchase (HP) normally found on vehicles.
Unsecured debts are not secured to anything and therefore the creditor does not have the automatic right to repossess any goods even if you are struggling to repay the money that you owe. Examples of unsecured debts are credit cards, loans, storecards, catalogues, overdrafts, income tax bills etc
 

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