Thanks for that info.

Any ideas how I can make my credit rating better??

On another note - I was looking for sample letters to use to write to Alliance & Leicester, does anyone know where I could get such a thing....

Thanks very much for your help, I'll write to Alliance & Leicester and ask for there help, see what happens. Would you think moving my credit card to a 0% balance card would help??

You can but its not legally binding and the company can go back on it.

Veloxuk is right about contacting your creditors - they should all be helpful as they are members of the BBA and have committed to helping customers in trouble.

An IVA won't be any use for you as you do not owe enough and effectively only have one creditor.

If A&L don't play ball you could consider a debt management plan but if they won't play ball with you they probably won't with a debt managemetn company.

given that your credit rating is already damaged you could consider bankruptcy - look on the Insolvency Service website for more details (they are a government department so the advice is free and spot on)

Veloxuk is wrong to say that you can do everything that an IVA company can do - to do an IVA you need the services of a Licenced Insolvency Practitoner - they hold professional exams and are regulated - so veloxuk you can't do an IVA yourself.

I've decided to come clean about the debt which I have and am looking for some advice on how I go about sorting my mess out. I've read through many of the topics on this forum and people give so much good advice I hope you can help me too.

My debt is as follows: -

£9000 personal loan with Alliance & Leicester - with a recent settlement figure of £7,966.

£7000 loan to my family which i have £5890 outstanding

£2000 on my Alliance & Leicester credit card.

I don't have much of a credit rating which doesn't help and i have tried to get a consolidation loan but I have been turned down as the bank said I don't earn enough to get a loan big enough, I earn approx £16,000 a year. I have obviously damaged my credit rating by searching for loans but I have had a mortgage in the past year, which i no longer have as i sold the property (owned it jointly and had to sell it for less that we bought it for)

I am totally stuck at what to do next. I don't have my own place as I can't afford that and I pay off as much as I can each month but usually means a minimum payment to my credit card.

I have heard about Debt management and IVA's but I don't want to damage my already suffering credit score.

I really really want to sort this out, any help would be much appreciated.

thanks x