Three Most Important Plans to Put Down After Accessing a Bad Credit Mobile Phone

When your credit score hits rock bottom, things can only get worse. At this point, you are left with nowhere to cling to as banks abandon you, insurance firms raise premiums, and mortgage companies attach hefty penalties to your plan. Even phone companies are not left behind in sidelining those with bad credit. They will decline the application for phone contracts and only offer SIM only deals or cash sales.

The good thing is that many bad credit mobile phones are now available in the entire UK. Once you demonstrate the ability and commitment to pay, the dealers will be ready to release the phone of choice. However, these phones come with special insurance that makes them more expensive compared to buying in cash. Once you secure a bad credit mobile phone, experts insist that you must embark on a vigorous plan of drawing and implement the following three plans.

A debt recovery plan

A debt recovery plan is a clearly defined strategy for tackling existing debts. One of the main reasons for the current poor credit is outstanding debts. Some have school loans, bank loans, mortgages, and even insurance related debts. A debt recovery plan is a comprehensive strategy that factors the cash available for clearing debts and appropriate prioritization. Many experts recommend that people with bad credit mobile phones start with the high-risk loans such as phone contracts and logbook loans. Once the high-interest loans are cleared, you can focus on other less risky credits until all debts are fully covered. Depending on the nature of the debts, you might consider debt consolidation so that you only handle one loan.

An emergency fund enhancement plan

Though you have several loans that must be cleared, it is prudent to have an emergency fund to cater for unforeseen dangers. If there is no cash for emergency, problems such as urgent medical cases will drive you to start looking for Payday loans that are very expensive. These will only sink you deeper into financial trouble.

To create and implement an emergency plan, it is important to set aside some monthly amount and direct it to the emergency account. This amount should be added until it reaches the equivalent of 6-12 months’ worth of your salary. To avoid rushing to the emergency fund regularly, ensure that an appropriate medical cover covers the family.

A credit score recovery plan

Perhaps credit score recovery is the most important. A credit score recovery plan is the summary of all efforts aimed at enhancing your creditworthiness. The plan should involve clearing the current debts, enhancing your credit history, and creating a good relationship with lenders. You should also focus on timely payment of all utility bills to avoid getting reported to the credit reference bureaus.

One crucial component of this plan is correcting errors in your credit score report. Often, the credit reference agencies make errors because they rely on third parties that can be late or omit crucial personal details. Ensure to correct errors on the credit report every six months until you fully get out of debt.

 

Three Dangers You Must Be Aware Of When Looking For a Bad Credit Mobile Phone

Have you been looking for a good smartphone but the bad credit score is standing on the way? The best option is looking for a bad credit mobile phone dealer. The dealers are mainly interested in clients’ ability to pay the selected phones without worrying much about the credit score. Most of the dealers make the process very easy such that clients can get the phones of choice in less than 24 hours. However, this great deal comes with some hidden dangers that you must be aware of and evade completely.

Paying too high for the phone

Because the bad credit mobile phone dealer takes all the risk, the mobile phones are priced higher compared to the conventional contracts. Here, you must be extra careful and compare the cost of getting the selected phone from a specific dealer or cash. Though it might be impossible to get a dealer offering bad credit phones at the same price as cash, you can bring it down with a significant margin. It is important to negotiate as much as you can to have the price revised downwards to enjoy higher value for money.

Risk of sinking deeper into financial trouble

One question that people going for bad credit mobile phones in the UK must keep asking themselves is how they arrived at that precarious situation. One of the main causes of the problem is outstanding debts. Now, because the previous loans have already been a great problem; will adding another credit not worsen the situation? To reduce this risk, you need to craft a workable debt clearance plan.

  • Use a strategy that focuses on clearing the small loans first to gain momentum for clearing the larger debts. Here, you target the debts with small balances while maintaining the minimum allowed payments for other credits.
  • One can also select a model that focuses on clearing the high-risk debts to reduce the amount paid in interest. In this case, you focus on debts such as logbook loans, bad credit mobile phone credit, and credit card loans.

The danger of joining the wrong carrier and tariff

When many people get a chance to pick a phone of choice from a specific bad credit mobile phone dealer, the focus is trained on the device. This leaves the dealer to pick the carrier and tariff for the client. Because most dealers are looking to make the highest possible profits, they will encourage you to get into the most expensive tariff.

To pick the right carrier, it is important to check the company’s network coverage, charges, and feedback from past clients. You should also look at the carrier’s restrictions for clients from transferring to other networks. A good carrier should not lock clients at the end of the contract with unnecessary conditions.

To know the right tariff, it is important to carefully evaluate the personal need for data, talk time, and SMS. For example, if you make calls for 20 minutes every day, the right tariff should provide about 600 minutes per month. Make sure also to evaluate other phone requirements to pick the piece with the right features for personal use.