Help with debt

I have £8500 of credit card debt and 1 CCJ and I don’t know how to start to deal with it. I have a payment plan for the CCJ but I haven’t been in contact with the other companies for quite some time.  I want to finally sort out my finances once and for all as it’s causing me so much stress. What is the best way to do this? It’s been suggested I take out a DMP or IVA but I’m studying to become a bookkeeper and would like to purchase a house one day in the future if possible so I don’t want to go down a route that would be bad for my future plans. If I contact the companies myself what order should I be doing it in and how much should I be allocating to each one? Is there a better way to be doing it or just start with the first one on my file? Sorry for sounding clueless, I am really lost with what to do for the best. 


  • EssexHebridean
    EssexHebridean Posts: 21,482 Forumite
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    First things first - put together your SOA (Statement of affairs) - there is a link to one of the calculators we recommend for this in my signature below. Take time to make sure it's honest, open and accurate - resist the temptation to put in figures because you think you "should" be budgeting for whatever it relates to - you probably should, but if you're not currently doing so then putting a figure in there just means you can't see where your money is really going. 

    It will help you to get together a years worth of statements - bank account and credit card - plus statements for any loans etc you might have.  hit the "format for MSE" option at the bottom, copy and paste into this thread and we can take a look and see what suggestions we can make for you. 
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00
    Balance as at 31/12/23 = £112,000.00
    SOA CALCULATOR (for DFW newbies): SOA Calculator
  • kimwp
    kimwp Posts: 1,854 Forumite
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    I think if you contact the companies to arrange to pay a lower amount, that's basically the same thing as a DMP in terms of your credit (unless they don't default you, in which case it's worse as it will stay on your records longer). As EH says though, SOA is a good first step.
    Statement of Affairs (SOA) link:

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
  • RAS
    RAS Posts: 32,796 Forumite
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    Oh, and avoid an IVA; they are designed for people with £30K+ debt and assets they need to protect. They also go on the Insolvency Register and repaying your entire debt would barely cover the fees.
    The person who has not made a mistake, has made nothing
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