Advice please

Tixy

If your credit card has gone to debt collectors have they stopped charging interest (and if they haven't have you asked them to consider freezing interest?). Was this one of the debts you were going to consolidate? If so then I wouldn't even consider it as it would cost you far more to consolidate and pay high interest on that debt, than to pay little or no interest on the debt as its with debt collectors.

It sounds like you have very little chance of getting a consolidation loan. I would instead think of the best way to tackle the debts that you do have. Have you worked out a statement of affairs to see how much you can afford towards your debts each month?
Have you found out the balances & APRs for all your debts and entered into a 'snowball' calculator to work out the best order to tackle your debts so that you pay the least amount in interest?

Squidge123

I would have been usung the loan to pay off other debts to free up money to pay the credit card off quicker. I live at home with my parents and pay no rent but am also supporting my partner who's having some difficulty at the moment.

Can you give me any info on a DMP and whether this would actually be a better option for me?

Tixy

A debt management plan can be a very good option for someone who is unable to meet their current debt repayments, even after cutting out non essentials. It will have a serious impact on a person's credit file for around 6years (as they will receive defaults), but for a lot of people who enter them their credit files are fairly wrecked already.

If you consider a DMP use one of the recommended charities who will run your DMP for you for free.
Essentially they discuss your finances with you and together you calculate an income & expenditure (excluding debts) to see how much you have left for debt repayments each month. You then pay that amount to them and they split it between your creditors. They ask your creditors to freeze interest & charges. Your creditors don't have to but many will if they can see you are paying all you can afford.
You agree not to take on any more credit until the debts are repaid. You have an annual review at which you calculate a new income & expenditure to see if you can afford to increase your DMP payment, or whether you need to reduce it.

If you are considering a DMP the first step is to work out a statement of affairs to see if you can meet your repayments (or if you should be able to).

Squidge123

I know I should be able to but I'm currently supporting my partner which is making it difficult to pay what I need to.

Squidge123

I think I'll stick as I am for now and just make sure I'm covering every debt possible to get it reduced that way. Thanks for everyones help