Financial advice

[speckledfen]

I have £5055 of debt. It was initially £20834 but the majority has been paid off.
Im hoping to be able to then get a mortgage and have a secure place for my family to live (we have had to move around a lot, my eldest is 12 and has lived now in 6 rental properties).
My main issue is that around £2500 of the £5055 is really stressing me out more than the rest and making me worry that mortgage in the future will be pushed so much further back.
One of the debts for example is with Vodafone for three separate accounts (airtime and two devices for myself and my husband). Despite paying each month now towards it to pay off the debt, because the account is still technically in default, im having three missed payments each month recorded on my credit report, and each month (despite paying towards it) there's another three reported it makes me feel so panicky like im drowning. Which I suppose is a separate issue.
We have done everything we can to cut all costs to repay all we have missed and set a good foundation for moving forwards with life. (We now have PAYG Sims on old phones, low cost. Meal prep and shop far more savvy just for things we absolutely need).

Do I continue to plod along and pay this £5055 off Dave Ramsey style while accruing the missed payment markers on credit report (making the mortgage more difficult to then get).
Or do I try to take out a credit card for £5000 to clear remaining debt completely, ensuring there are no more missed payment markers going forward, and just pay it all in one payment?

I can't offer advice on the vodafone debt but I just wanted to say how incredible you've done paying off as much debt as you have! *missing point of thread I know!

Are there actually payments being missed currently because the accounts still exist? If not I would complain. Are you on some sort of payment plan to pay off the debt or are you just paying it? I would talk to them, it seems daft that they are seeing this as missed payments, and if there are really new payments to be made they should take them first, with the rest going to pay off the debt.

If they won't sort it I would go for a loan to pay it off in one go, hopefully at a decent rate. Have you talked to any of the free debt counselling services, they might be able to sort it out if you can't.

I don’t understand why they are recording missed payments. Sounds like something hasn’t been set up right.

Im not sure where we stand with this really, in that the lines are disconnected. When this happened and we left the contracts, there were lots of fees added on for leaving midway through.
Not exact figures but for example lets say one of the bills was £30 per month and we left with a year to go, that then became £360 plus disconnection fee that we owed.
On my credit report it is showing as just owing the full amount, so im thinking because it hasn't been paid in full this is why it's being reported as missed.
We are paying towards it, but payments not being reported to credit file im assuming because its not the full amount.
Its giving me such a feeling of panic I think it may be better to just get the loan/credit card but it goes against the ethos we have been using to pay it off.

Husband and I grew up with no financial awareness at all. We were both in financially abusive relationships before we met and therefore met with a lot of combined debt (thankfully nearly paid off).

Due to this, the only knowledge we have really needed so far is planning to get out of a large amount of debt.

I feel were now in an in-between stage where we need some sound financial advice/mentoring as to what to do with this kind of decision as i've no idea if loan/credit card is the sensible choice here or would make things worse.

Looking at local financial advisor options, they all seem to cater towards retirement/investment/savings ect. We obviously have none of these things yet so it's not quite appropriate.
But neither is a debt advice charity or bank as I don't want to be railroaded into a debt relief order/iva ect, or advised to take out a loan/cc by a bank with a vested interest to sell it.

We are just in this weird in-between stage of needing impartial sensible advice for this last 5K.

I would not recommend a financial adviser in your circs at all. Waste of money.

First thing to do is speak to Vodafone and find out what's going on. They should not be recording these as missed payments. Do you have a payment plan in respect of the debts?

Have you been on https://forums.moneysavingexpert.com/categories/debt-free-wannabe? Lots of people on there with really useful experience. I also wouldn't discount the debt charities- they won't push you into anything and can be really useful.

Personally I prefer the MSE guidance on debts to Dave Ramsay- it prioritises the debts with the highest interest so you get it all paid off more quickly and for less money. Do you know the interest on your various debts? Finding this out will also allow you to work out whether you would be better off consolidating.

https://www.amazon.co.uk/Meaningful-Money-Handbook-Everything-everything/dp/0857196510/ref=as_li_ss_tl?ie=UTF8&qid=1534343408&sr=8-1&keywords=pete+matthew&linkCode=sl1&tag=psychomatics-21&linkId=da71c70e28015767c94acce1998ca960&language=en_GB Going forwards, I'd suggest this book (nb the author has recently published one on retirement as well so don't accidentally get that one). It's a really clear guide to how to manage money and build a strong financial position.