Solving your debt ! - It can be done

a2062cad

On the 1st of January this year, I made the decision to sort my debt crisis out. I had been living with this for many years, playing the 0% card game and worse still not even letting my partner know. Interest on interest mean't that at the end of 2008 I was in debt to the tune of £100k+. All unsecured. ITS A REALLY HORRIBLE FEELING, especially if you can't talk to anyone. Its like leading a double life. One moment your talking to work colleagues being normal, then next racked with guilt and sadness at where it will all end.

I told my partner which was the worst moment and of course it put our relationship under so much strain. Even the pressure on our children mean't a very upsetting period, which was not nice at all.

The reason I am writing this is because there is life after debt.

There is a way and it can be done. What seemed almost unthinkable and unmanageable has turned from despair to a new begining.

For me that happened this week when my IVA was approved, with no £ modifications. It was not over 5 years but a first and final IVA. The dividend being around 35p. I can't tell you what its like to NOT be thinking about this every moment of the day and night. Not having to worry about the letters, juggling, end of month madness. Now I can think about the future and I can begin to RE- LEARN those things which took me down this path. Although my OH is still cross with me for the hiding of this debt, she has supported me so much.

So if you are reading this and your are in debt and wondering what to do, take comfort from my experience that it is possible to sort out. It seems to me that there are many people who are in this situation but there are equally many people who, through these forums are very supportive and non judgemental. To them I say thank you.

To those who like me on January 1st wandered "WHAT DO I DO", take those first steps and start to take back control.

There is life after debt.

Totally_Skint

Thanks for putting this post up. I'm at the beginning of my debt problem. Currently £45k in debt, all on credit cards. However i have come to conclusion after reading other people's posts on here that an IVA is possibly the best course of action. I have been missing payments over the last 2 months and have received the usual calls from RMA, Lloyds, Barclaycard etc, and its really getting to me.

Anyway after reading this it gives me a glimmer of hope.

Thanks again.

driver24ian

this post have given me a lift as im in the same postion, but to the tune of 30k debt, thinking IVA, am i right in thinking this is only paid off for 5/6 years whereas a DMP is until the total cost is repaid?

Surely everyone would choose the IVA if this is the case. Advice would be great.
Thanks

a2062cad

driver24ian wrote: »

this post have given me a lift as im in the same postion, but to the tune of 30k debt, thinking IVA, am i right in thinking this is only paid off for 5/6 years whereas a DMP is until the total cost is repaid?

Surely everyone would choose the IVA if this is the case. Advice would be great.
Thanks

I believe yopur right. However, if you can gather the funds upfront, you can do a full and final IVA which is only about 2/3 months. It still creates problems with your credit file thopugh for 6 yrs.

Worth considering I think.

Bobbledoo

Thank you so much, I have been searching this site all day working myself up into absolute panic. I currently have 60k unsecured debt and feel exactly as you described. I have read all sorts of ideas about cutting back spending and payong £1 a day towards debts but these are just not solutions for such large debt amounts. Having read this I can finally go to bed and sleep. Looks like the IVA route might be the only option for me - I don't want to loose my house.
Cheers again.

s1lvercloud

congradulations,

how long did it take to get your iva approved? and was there any creditor, c/c or loan company which was awkward and did not want to agree?

a2062cad

Hi Silvercloud, once I had discussed all the aspects of my debts with an IP, which took three weeks, it was a further four weeks to the creditors meeting. So in my case from actually taking the step to visit and discuss (own up), it took about 2 months.

From when my IVA was approved, I have four weeks to produce the money and hopefully 2/3 month's later my IVA will be completed successfully.

As far as the creditors were concerned, they covered a bank, most of the big cards, Egg Loan. In fact they did not all vote, but of course those that did vote yes formed the necessary 75%.

It really is so clear to me that so many people are feeling exactly the same, trapped, feeling guilty, can't talk about it and you know what, if you can take the first steps you immediately start to feel a sense of relief.

Don't get me wrong its not a walk in the park. Of course you still get the letters and calls, but once you have agreed the plan with the IP, you really do start to feel that your heading in the right direction.

One cautionary word though; do your homework and select a good IP. One who can demonstrate a track record and one you can talk to and contact easily. You will find as you go through this that so many questions come into your head, so being able to contact them is important

I can sleep at night now and I feel so much stronger about my life going forward.

GOOD LUCK

s1lvercloud

thanks for your reply a2062cad and congradulations again,

just out of interest, which creditors did not vote?

"Of course you still get the letters and calls" - do you mean after your IVA approved? or when your IVA was in process of being approved? Were you already behind some payments or did they all start sending you letters and calling you?

a2062cad

Hi Silvercloud. No this was during the lead up to the IVA.

MBNA/BARCLAYS did not vote.

Pretty much upto date with payments. ALthough when I starter on the process I stopped paying and explaiuned to callers what I was doing and asked for 7/14 days breather whilst I was advised. This lessened the calls.

Kuggers

Hi. What's a "First and Final IVA"?

a2062cad

Hi Kuggers,

As it was explained to me, its an IVA where you pay the first payment which is also a full one off payment. There seems to be several different terms for this but the bottom line is that if you are considering an IVA AND you have or can raise enough cash, then an IP may be prepared to put forward a F & F to complete and settle the IVA. Seems like this in practice is done over 2/3 months, instead of 5 yrs.

Mine was a F & F and took about 2 months.

Hope this helps.