Would an IVA be best for me?

Hi, I'm looking for some advice from those in the know here.

Here is a summary of my current situation -

Loans - Bank 1 - £5000, Bank 2 - £15000, Bank 3 - £5000
Credit Cards - Bank1 - £1000, Bank 2 - £8000, Bank 3 - £1000
Overdraft - £4000

I had to leave a very well paid job towards the end of last year for health reasons and am now self employed but earning MUCH less. Previous earnings were enough to cover debt repayments and live off even though the total debt was very high but now it is completely unmanageable.

For the last 3 months my earnings have been approx £250 each month. This should increase to approx £800/£900 next month, £1000 the month after and steadily building throught the year to around £1500. These amounts are take home amounts.

I have now used all my savings and have reached the stage where I can no longer service my debt. Payments are bouncing and something needs to be done.

I have called Debt Fixers (found randomly on internet) who recommended a Debt Management Scheme. They want an upfront fee of £209 which I don't have and say I would pay approx £109 towards my debts. My understanding of this scheme is that it continues until I can afford to pay more or until my debt is cleared - which would take around 30 years by my calculations!

I thought an IVA would be the best route. Any thoughts?

I am in rented property and have no other assets. Is an IVA a better option for me and am I likely to meet the criteria being self employed? Does this matter?
Having read the forums I will contact National Debtline now but thought it best to pick your brains first.

Thanks for any advice.


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