Debt Free Management Plans

Desperatehousewife_2

Hi have about 15k on different credit cards but being a limited company (smalll business) for only six months we cant get any loans ,cheap rate credit cards to consolidate and pay off, so have looked at a debt management plans but worried about credit rating as currently on interest only mortgage and will need to look at changing this as soon as we have the required accounts to apply again. Please can anyone advise on any positive experiances of a similar situation where you have managed to find a way to reduce credit card debt without any impact on credit score.....I am very confused by the whole thing and worry that if we commit to a plan we may find ourselves with more finacial promblems later on...Thanks a Desperate Housewife !

niccatw

Hi

People on the forum have very positive things to say about DMPs, however, they will affect your credit rating.

If you are managing to make all you mininmum payments, it might be more useful to complete an SOA http://www.makesenseofcards.com/soacalc.html, including all the credit cards, APRs and limits, and people might be able to give you advice on where to cut back or how to manage the cards you do have better.

Also have a look at the snowball calculator on the same site as the SOA, as it can tell you what cards to pay in what order to reduce the amount of interest you pay on your current cards.

Tixy

Hi

Just wanted to add to what nicca has already said - if you do go down the route of a DMP make sure you use one of the recommended, free organisations (not someone who will charge you a fee every month) - http://forums.moneysavingexpert.com/showthread.html?t=2077631

If you complete the SoA that nicca gave the link to then people may see other options that do not affect your credit rating.