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Authordddiamonddd
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> I had read/misread somewhere that it is better to pay them off slowly than wipe them straight away

Total myth. Yes, credit history is important, but building history by slowing down repayment of high debt costs far too much to be worthwhile. You're far better building history by doing something like the credit builders in that MSE link. There is no reason whatsoever to build history via something that costs money. A credit builder card is functionally free provided you only use it for normal spending and pay it off in full. Don't pay interest in the hope of "building history".

> the reason for the consolidation is some have been sold so many times I receive letters from multiple companies about the same debt and im worried I pay X company only for Y company to say they own it.

If you're in the position that your debts are with debt collectors, this is, to be blunt, a really bad situation. I'd strongly suggest speaking to StepChange: https://www.stepchange.org/ This also makes the terrible idea of "paying off slowly" an even worse idea. Paying down debts that are with debt collectors slowly just extends the pain far beyond what it should be.

You need to be absolutely clear on what your debt is and who it is with. Which would mean contacting anyone who has sent you a letter and asking them to provide evidence of the debt. It is REALLY important that you are careful in your wording. In Scotland, debts are considered 'prescribed' after 5 years - https://www.moneyadvicescotland.org.uk/faqs/prescription-of-a-debt - IF, and only if, you haven't acknowledged that you owe the debt and no court action has been taken. As such, you need to basically write back to them and ask them to provide you with evidence that the debt is actually owed by you and that they have the right to collect on it. But you need to write it in such a way that you are specifically saying you do not claim the debt nor are you agreeing that you have liability for the debt. StepChange can help you get all of this straight. Use your credit reports from the different agencies to track where the debt started. eg. if you had an overdraft with ABC Bank that has gone to a debt collector, then you would expect that the debt collector would provide evidence showing that overdraft with ABC Bank being sold to them. You can also contact the original lender and see if they have any records to tell you where the debt went. Sometimes, if the debt has shuffled around between collectors, you might find they don't really have any evidence. If they can't prove you owe it, then they're unlikely to ever be able to take court action. If court action has been taken and a CCJ raised against you, you MUST deal with that. There's no getting out of a CCJ.

The fact that it is with debt collectors means that the chances of you consolidating the debts with another lending product are basically zero. No lender beyond scummy payday lenders will touch you right now. So your options are pretty much to just establish what the debts are, who they are with, and paying them off, then waiting. Time is one of the best healers for your credit history.

In short, gather up everything you know about all of your debts and speak to StepChange. They will also help you make a budget. Be ruthless and be ready to cut your spending down. What you've described is, functionally, an emergency and you should treat it as such. Your credit history will not improve whatsoever until you get the debt collectors off your back, so don't even bother looking at credit building products. They're a total waste of time for you right now.
Reddit Linkhttps://www.reddit.com/r/glasgow/comments/wrinbc/credit_union/ikwrezq/
CreatedFri 19th Aug 2022 8:42am
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