Hi
what you need to do in contact each creditor and arrange a repayment program, explain your situation to them and they should be sympathetic as lots of ppl are in the same boat these days. work out what you really can afford to pay each month.
a repayment plan will help your credit rating as every month you meet the agreed reduced amount i shows that you have met you payment that month instead of falling behind.
Help is also available from other sources, your local CAB, debt help line or by contacting the CCCS

try not to worry about it too much, and well done for trying to sort it out not just burying your head in the sand! hope this helpsNo getting the amounts paid by consolidation will affect your credit but not as bad as not paying your bills.

Just have a look don't jump into anything.

This company helped me, http://snurl.com/creditadvice

Just try them. Hope it helpsDebt management companies are in business to make a profit – from YOU. Go instead to Citizens Advice Bureaux, check out daveramsey.com, Oprah's Debt Diet or any of the other free advice sites online.
http://www.citizensadvice.org.uk/
http://www.debtadvicebureau.org.uk/
http://www.payplan.com/
http://www.insolvencyhelpline.co.uk/

I found these and many more doing a google.co.uk search. Just check the FAQs carefully. It sounds like some of these places give free advice, but once you agree to use their services, there may be fees. Those fees would be better spent reducing one of your debts. I'm a firm believer in anything they can do, you can do yourself.

If it were me, I'd reduce the loan with the highest fees first, on the basis that it costs me the most. You might prefer to tackle the smallest one first so that it can be eliminated and now you owe ten loans, then nine, then eight and so on until they are all gone. And when each is down, cancel that store card or credit card so you can't get into the same situation again.

If you have any spare money, you might join your local credit union, and after anywhere between 8 and 12 weeks saving, apply for a loan.
That single loan could be used to clear all the other debts, and you would have what you wanted – one loan, one repayment. On the other hand, you might have cleared one or two of those debts within that waiting period.

You can do it. I did, with the help of my credit union. Good luck!!!No one else seems to have answered your question.

The short answer is yes. If you enter into a dmp your creditors will issue default notices and these will damage your credit file.

However its likely you already have a poor credit rating given what you have said about being declined for loans, so this should be the least of your worries.

£4000 isn't a massive debt and many debt management companies wouldn't be interested. However there is lots of free advice out there and on this site. Email me if you need more.Johnny is right, but dont pay fees for a debt management programme that you can get for free. But you may not even need that if you can get your debts legally cancelled. I used www.bdebtfree.info to use the law against these companies and it saved me loads of money. Good luck.Yes, being in a debt management programme will affect your credit rating, but don't assume that is the only option. You mention wanting only one monthly payment, which I know sounds attractive, but you could be paying dearly for that convenience in the long term.

Debt management companies and loan consolidation companies exist to make money and you are the one who pays them. You can deal with any debt without paying anyone for these services. The basic process for sorting out any debt problem long term involves negotiating with your creditors to arrange repayments that you really can afford. There is more to it than that and you can find a detailed guide on the website below.

If in doubt, or of you want to discuss it face to face with someone who is not trying to sell you something, go to your citizens advice bureau.Most debt management programs are similar to bankruptcy with even tighter rules such as no more debt accumulation while in their services. The honest ones can help you but they put in your credit report a statement that you are going through debt management and you will not be able to get any credit until you finish with them.Please do not consolidate. It is not free, they will lower your payments by increasing the length of time until you are debt free, and you will take a hit on your credit score. Or they negotiate your debt down after telling you not to pay for awhile adding another hit to your credit score. There is a better way.

A. Have a garage sale and sell anything that you no longer need or want.

B.Get a temporary part time job, if you have one, get another. It is better to have a "no fun" year than a "no fun" decade. That is how long a bankruptcy stays on your credit report-10 years! Having a bankruptcy or credit consolidation can also prevent you from getting a good job with certain employers.

Here is a plan that can help you. If you work the plan, the plan will work for you:
1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an "emergency fund" category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don't even have to worry about it. You must cut your spending and live on less than you make.

2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.

3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:

To start :
Debt #1 (highest interest): minimum payment+ extra payment
Debt #2 (middle interest): minimum payment
Debt #3(lowest interest): minimum payment

Debt #1: paid off
Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment
Debt #3: minimum payment

Debt #1: paid off
Debt #2: paid off
Debt #3:Minimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.

That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.

4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.

5a. When you have your emergency fund in place, add a category for "fun" to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.

5b. When you have your emergency fund in place, start saving for your retirement. I don't know if there are retirement accounts like a Roth IRA in Britain, but if there are, start putting some money in.

5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.

You can do it and it isn't as hard as you think. Just follow the plan

 

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