Advice needed...complicated?

foreveradevil

Hi,

Me and my ex wife have been on a debt management programme with CCCS for the past 5 or so years and have been making regular monthly payments. Since our split circumstances for me have changed and i am now becoming more financially secure, i have a good job and have a good income. My question is this...

I owe in total £12,000 and was wondering if it would be better for me to try to get a new loan to pay off my bad debt and clear my credit file. I would then have just one single loan of the full amount for which i can easily maintain the repayments and probably pay back in half the time it would if i continue on my debt management plan.

Would this way improve my credit rating? by having my old debt clear and only having this one new loan? or am i best to pay it off through the debt management plan but over a longer period of time. I am now in a new relationship and want to sort my credit rating so that we can start think about a mortgage.

Any help or advice would be of great use, if i have made no sense what so ever i apologise in advance.

Thanks

Rob

anh1904

Can you go back and talk to CCCS? Sounds easy on paper, but you may struggle to get credit with your hstory, so a new loan may not be an option.

DayDreamSaver

Hi

Glad to hear that your situation is getting better - I don't know much about DMPs, but if you can afford to pay more than you are currently there has to be a way to get clear of your debt more quickly.

I'm sure someone who knows more than me can give you specific advise, but if you can't increase your monthly payments, perhaps put something aside each month until you have saved the total amount owed and then pay everything off?

Getting another loan might not be the best idea - the interest would be very high with a poor credit rating if you could even manage to get a loan.

Hope someone with more knowledge responds soon - but good luck

DDS