Should I consolidate debt or pay individually with bad credit?

G

GodlyBatch

New Member
Hello,

I am finding my debt difficult to manage. I am in mortgage arrears after a divorce and then being made redundant. I cannot seem to keep on top of them all.

My credit is poor. I am debating whether to try debt consolidation or to get myself more organised and pay them off individually. No matter what happens, I konw it will all remain on my credit file for six years.

Thank you.
 
I’ve been in the same boat. I couldn’t keep up with all the minimum payments on crdit cards, etc., so I stopped. My focus became getting myself ahead and keeping priority bills like my house up to date and paid for. Nothing is more important than your house; credit can be rebuilt. It sucks, but sadly, sometimes that’s what needs to happen if you can’t do it all. I ended up tanking my credit score, but several cc cards took off almost half my balance with collections, and I’ll pay them back in small amounts when I can. And I’ll rebuild my credit soon.
 
I so agree with GentlePanda... keep up with the mortgage and your other necessary bills. If you can, work on paying the smaller balances first, then put that payment toward the next one.
 
Yep, when you’re down, recovery takes a while. For me, it’s been 11 years, and I have another 2–3 years of cleanup.

I looked into financial education, made a budget, and worked a payoff plan. It’s tough, but it’s better than the pits.

List your debts: balance, APR, minimum, and how much extra you can spare for payments each month. I can help make a debt schedule based on what I learned.
 
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