While it may seem daunting and poor timing, you're going to get through it and be all the better for it. It's going to take some time, but by this time next year, you can start to put your credit score in a more positive light.
The first thing that you'll need to do is stop spending. You can't save money if you're spending it. Pay your bills, but don't spend any of the rest of your money until you've made a budget that suits your lifestyle.
Your budget must include the basics. It must include your rent or mortgage, your power bill, food, insurance, gas for your car, and any other necessities that you have. Don't forget anything or this budget is going to be off.
Now determine what you have coming in. If your income fluctuates, you're going to have to monitor this carefully. Make sure that you're paying the necessities and focus on what you can do without if need be. If you do need to secure a loan and your credit is poor then you may need to approach a bad credit lender such as https://www.firstqualityfinance.co.uk/loans-for-bad-credit/
Check your credit history
This may resolve some of the issues right there. It may take a few months to sort it all out. However, you'll have to be patient. Keep checking back and work toward a resolution. In the case of a divorce, be sure that you have the documentation that you're not responsible for the bill (in the decree it will show who must pay what).
Once you've taken these steps, wait a few weeks for everything to catch up on your credit report. If you've followed these steps, you should start to see your credit score slowly climb upwards.
Now you'll want to determine the rest of the bills that you owe on the credit report. There are a few ways to do this.
Group them according to the creditor (typically a collection agency) and then prioritise them. If you have one that is under £100, start by paying that one off.
Once you've paid that one off, go on to the next one that is £100 or slightly over that amount. Keep working towards paying your debtors off as fast as possible. Use the extra money that you have towards this as often as possible.
Extra money is money you get from overtime hours, a second job, a once in a while job or some other means. It may seem impossible but don't despair. If you follow a credit monitoring company online, you can follow your score as it rises and this will help give you more momentum.
Remember, this is only temporary. Do whatever you have to do to keep the momentum going. Have a yard sale, Take every opportunity to earn a few extra dollars. Learn to get by on the minimum and don't stress over any extras. This situation is only temporary, and your credit score is going to start going up every day.
As you take these steps, your credit score is going to start going up. If you don't have a credit card, it's time to get one. When you open a credit card, don't use the card except to put a few pounds on it each month, then pay it off in full. By having this credit to income ratio, you're going to look better to the creditors, and your credit score is going to improve.
Remember, you don't want to rack up more credit so don't spend more than you can pay in a month. The good idea is to use it to put fuel in the car once per month and then pay it off as soon as possible. The sooner you pay it, the more you save on interest and the more likely they are to increase your credit limit.
Improve your score to help with big purchases
This is what you want when this increases your lowering your debt to income ratio and looking even better on their records. This may seem like a lot of work; however, if you're considering a large purchase of a house or car in the future, you must work toward a higher credit score to secure that loan.
Keep paying off the rest of the debt on your credit report. As you pay off one bill, put that amount toward the next one and as much more as possible. Give yourself small rewards along the way. A latte once every few months is a good incentive for some. For others, an ice cream cone once every few months. Whatever it takes, you're building your creditworthiness back up, and you deserve a small token of appreciation every so often.
By following the above steps, you're going to be building your credit back up to a higher score. Every positive step that you take will have an impact on your score. If you're struggling to get a credit card, consider a pre-paid credit card, which can help build your credit rating.
Every time you pay off a bill, you're a step closer to your goal. Each balance that you lower will also positively impact your score. Eventually, it all adds up to a greatly improved credit score. The sooner you start, the sooner you're going to have a better credit score.