Taken a big step to sort out debts today...feeling good

tnel15

So I was looking for a loan of 4500 to consolidate my debts. Was unsuccessful. My credit rating and past history has impacted lenders decisions. I'm 21 and want to start to grow up and sort my life out.
Today I called all of my creditors and got an early settlement figure which slashed the amount I needed to borrow by 1500. I started looking for new loans of a smaller amount but still had no luck.
I realised it wasn't going to happen so I called Step Change. In the space of a day I gave all the info they needed to set up the plan, they sent a template letter to me to send to my creditors to cancel the continuous payment authority. They told me the plan will be in place my my next payday and I shouldn't need to worry.
Feeling great and back in control again.
I'm going to start repaying 136 per month to Step change but that estimates it'll take around 2 years to clear the balance. But I'm going to start off small and work my way up once I learn to budget properly. Hopefully I'll be debt free by this time next year.

Yes this is going to negatively impact my credit file, but maybe that's a good thing as for a few years until I get sorted and learn my lesson, I won't be able to borrow anymore.

I hope, until I maybe get a mortgage, this will be the last time I have to deal with the horrible world of debt.

jules888

Good luck!

System

Best step you will ever make..:T.good luck. We have a bigger debt and will take longer to clear, but I know we have made the right decision, despite the initial hassles with creditors letters etc.

Minty123

Good luck tnel15!

Positively

Good for you for facing up to it all, best of luck with your plans!!

rockm87

best of luck, and well done for sorting yourself out so soon.

andyfromotley

well done. You are right, a lack of access to credit will be a very positive thing for you.

I have learnt from these boards that it is possible to survive and thrive without credit.

PinkPoppies

Well done! Being rejected for the loans was a most likely a blessing in disguise and two years will soon fly by Best of luck :beer:

whattodo1967

Good luck on your journey. I can honestly say DMP best thing I have ever done. I cant get any credit which is a good thing for me anyway.
I have been in debt for years consolidation loan after consolidation loan.
I have now learnt how to budget.
Once again good luck, and your still young enough for it not to impact too much on your plans for the future.