When faced with a Country Court Judgment (CCJ), it’s only natural for people to panic and scramble for money. It’s a formal order from the court saying that you owe someone money. The lender, or creditor, has taken legal action to claim it back.
If you’ve received a CCJ, you’re likely dealing with more than just the judgment. It also shows on your credit file for six years and reduces your credit score. The stress and uncertainty, combined with limited access to things like borrowing or renting, can make managing your finances significantly difficult.
Thankfully, a CCJ doesn’t mean the end of the road. It’s a setback, and while it might limit certain financial options, it doesn’t eliminate all of them. There are still routes you can explore.
In this article, we’ll walk you through six financial options you can consider when you’re facing a CCJ to regain financial control.
1. Payday Loan CCJ
When under financial pressure, finding lending options that don’t shut you out completely can feel like a challenge. That said, some lenders specifically cater to people with low credit scores or past financial setbacks, including CCJs.
One of the options these lenders offer, payday loans CCJ, can be a financially viable option for you. These loans are designed for people facing a CCJ and are typically easier to access than other loans. These lenders are willing to look past the CCJ and focus on other factors, such as income stability.
That said, it’s still important to do your research. Every lender has different terms. Some may charge more than others or offer shorter repayment periods. If you consider this option, ensure that you’re fully aware of the terms and conditions and can repay the loan on time.
2. Budgeting Loans
If you’re receiving certain benefits, you might be eligible for a budgeting loan from the UK government. It’s an interest-free loan designed to help with essential costs, including repaying debts. You can settle your CCJ using this option.
There are certain criteria that you need to meet for eligibility. For instance, it requires you to be claiming benefits for at least six months. However, there are more terms that you need to adhere to, please find them on the Government’s official website.
3. Credit Union Loan
Credit unions exist to provide people with financial services at fair and reasonable rates. Unlike traditional banks, they typically don’t reject loan applications solely because of a CCJ.
That said, they may enquire about the reason for the CCJ before approving your loan application. Additionally, they might require you to settle your CCJ before considering a loan. Having a stable income helps speed up the approval process.
4. Debt Management Plan (DMP)
If you’re juggling more than one debt, a DMP might help. These are plans that are informally agreed upon between you and your creditors for paying back your debts.
DMPs bring all your outstanding debt into one monthly payment. This streamlines your debt and makes it easier to keep track of. They’re often set up through a third party who speaks to your creditors and arranges a repayment that’s based on what you can afford.
While this doesn’t directly provide you with urgent cash to settle your CCJ, it’s a practice that can help you repay outstanding debts faster.
5. Guarantor Loans
When borrowing gets tough, a guarantor loan might open new doors for you. This kind of loan allows a trusted friend or family member to back you up. They take responsibility for repaying the loan if you’re unable to.
Some lenders offering guarantor loans may still accept your application, even with the CCJ in place. Usually, they require your guarantor’s credit score to be good. Their income and reliability are what’ll secure the loan for you.
As with any loan that involves another co-signer, you need to be careful with this option. Ensure that both parties involved are on the same page to avoid potential conflict later.
6. Contact a Free Debt Advice Organisation
You don’t need to figure it all out on your own. Some organisations, such as StepChange and Citizens Advice, can help you understand everything there is to know about a CCJ. They also provide you with the information you need to take the next steps.
These organisations can help you work out a plan that suits your situation. Whether it’s adjusting your monthly budget or talking to your creditors on your behalf, they’re there to support you through the process.
To Sum Up
Having a CCJ attached to your credit file can be tough, but you can still achieve financial stability with the right steps. Using the tools we’ve mentioned above, you can take these steps and settle your CCJ gradually.
There’s no objective solution for everyone. To find out what would work for you, the key is to explore what fits your current situation best. Stay informed on the best financial practices and pay off your debts steadily without taking more high-interest loans.
Once you get started on this track, things will get easier over time. For now, just take things one step at a time and keep working towards your financial goals.