Please do not use a credit counselling service or any advertisement that says it uses 'little known government legislation' to wipe your debts. show more Please do not use a credit counselling service or any advertisement that says it uses 'little known government legislation' to wipe your debts. These companies can't do anything that you can't do for yourself but without paying the fees they lump on (remember, no one is in business not to make money so they make their money on your debts)
Firstly make an appointment to see your local Citizen's Advice Bureau - you will probably have to wait about 2-3 weeks for an appointment but the fact that they are so busy is a sign of how useful they can be. They can help you to negociate with any creditors that you may have and agree reduced settlement figures and reduced monthly payments. The majority of credit card companies and loan companies will agree to reduced settlement figures
or to freeze the interest on your credit/loans to help you during financial troubles.
As for repairing your credit rating, there is nothing you can do but continue to meet your monthly payments. Big brother is watching and everythng you do is recorded on the two main credit reference agencies, Experian and Equifax. There is no magical solution to repairing your credit rating so don't believe the ads that say they can repair them. Your credit rating will improve every 12 months that you maintain payments. If you have any County Court Judgements registered against your name they will remain on your file for 6 years. If you satisfy these judgements by paying the debts off, your must ensure you get a copy of your payment certificate from the Court and send it to te Credit Ref Agencies to change the status of the judgement.
There are some useful notes on how to repair your credit rating at www.equifax.co.uk and www.experian.co.uk.