Which option to take?

Matt1882

Hi everyone, I've been a reader on this site for a while. But I feel I need to ask to get anywhere with my confusion!

At the age of 18 I took a loan, then a credit card then another loan ..... You get the story!

I have little under £12thousand of debt with 5 creditors. I have not paid anything for the past 3 years, bad Matt!

I am self employed, earning a comfortable £20000 minimum over the last 2 years and I know it's time to pay up!

I want to pay my debts and improve my credit history at the same time. I have been told so many different things! Some say a settlement will be worse than paying off? Is a debt management plan the wrong step?

Here's my monthly profile:

Rent and council tax £650
Electric £80
Water and gas £35
Home insurance £6
Car £280
Car insurance £60
Mobile phone £30 (expires jan2013)
Mobile phone £15 (expires oct 2012)
iPad contract £32 (expires jul2013)
Broadband £6

Petrol £160
Food £100
Gym membership £32

Total monthly fixed expense: £1486 (seems so high!)

Income average 1700

Surplus without fun and smelling good £214


Can anyone advise me how I can pay my 12k while improving my credit history

Thanks!