Help!

james78_2

Ok so I'm new here and am just facing up to the fact I have a serious debt problem...

...I've kept it from my parents and family and also from my new wife.

Basically I owe £33,000 on 5 credit cards and 1 unsecured loans plus a student loans from 2002...and an overdraft of 2000....

I am seriously struggling to just pay the rent and the minimum payments on this debt and I have suffered server depression and anxiety trying to cope.

What shall I do? I can't ask my family for help and I'm spending more than I earn now just paying this stuff off....my credit rating is now low as I've missed a couple pyments......

But on the positive side I do have a stable job around 1200 a month...

Shall I take an IVA? Would this effect my wife in anyway?
I hoped that my wife amd I would be in a position to buy our first house in a few years but can this happen if I have an IVA? (I suppose my wife be able to get a morguage with out me).

We rent and so don't have any equity or assests! The only car I have is on a HP plan....

What happens if an IVA get declined?

Any advice would be great...feel like !!!!!! about the whole thing and I've finally started coming to terms what a knob I've been.

RAS

Hi

You need to talk to one of the debt charities about your situation and see what they suggest. IVAs are only appropriate for a small number of people and it may be a DMP or Bankruptcy is more appropriate option.

Then speak to your missus. It does not matter how the debt arose, if you have any joint accounts at all, once yu start struggling it will affect her credit ratig as well. She cannot stop her own spending until she know the full situation. She may scream, cry and yell for the first day or two but it will be better for both of you.

If you put up an SOA, we may also be able to point to ways of reducing expenditure.

milliemonster

Hi and welcome to the forum

An IVA is really only suitable for someone if they have a large asset to protect such as a house, as you are renting I would think an IVA is entirely the wrong thing for you.

You need to post up your SOA when you can, but I would seriously considering sitting down with your wife and being open and honest with her about your situation.

Post up your SOA and we can see where we can help you to manage your debts

property.advert

Just how much of the 33k is student loans ?

£1200 a month so is that about 18k ?

james78_2

property.advert wrote: »

Just how much of the 33k is student loans ?

£1200 a month so is that about 18k ?

No it's 33K plus student loans (they were 12.5K in 2002)....

it's 1200 take home so around 24K a year.....

james78_2

Cheers for the information where do I find this SOA please?

RAS

I would probably do an SOA - from here http://www.makesenseofcards.com/soacalc.html
and post it below to see if there are any answers any one else can spot but basically they can't have what you haven't got.

Charco_2

james78 wrote: »

What happens if an IVA get declined?

AN IP has a duty of care when he takes on a case that it has to have a good chance of success, it has to be a workable option for both the debtor and the creditors. If the proposal is rejected, it may be just be a case of changing a few details that the creditors have asked for and re-applying, if you cant do this then no harm no foul you can simply look at other debt solutions.

There's a negativity towards IVAs on here but you wont know until you go to find out more if it suits you. Speak to a debt charity or two, speak to an IP or three, speak to a DMP company (or a few), speak to CAB... it will do you no harm! They may all tell you slightly different things but then it's up to you to make a decision based on the facts you've received and what YOUR preference might be. If someone says a debt solution is the one for you ask them why, if they say it's not for you ask them why!

Dont pay anybody any money until you're confident they've put a debt solution in place, there are lots of companies who'll gladly take your money. Dont let anyone talk you into something you're not comfortable with.

Good luck!

james78_2

OK - Here it goes....gonna hurt....

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1250
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1250

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 200
Rent.................................... 500
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 20
Gas..................................... 20
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 0
Mobile phone............................ 25
TV Licence.............................. 12
Satellite/Cable TV...................... 25
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 160
Road tax................................ 18
Car Insurance........................... 50
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 14
Pet insurance/vet bills................. 10
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 80
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 1514


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 6000.....(200)......0
Total secured & HP debts...... 6000......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
credit card mbna...............9300......180.......0
credit card virgin.............3000......59........0
credit card hsbc...............3000......60........15
student loan...................10000.....60........0.2
aa loan........................1680......192.......6
credit card tesco..............2800......60........14.7
credit card mint...............3000......60........15
Total unsecured debts..........32780.....671.......-


Monthly Budget Summary
Total monthly income.................... 1,250
Expenses (including HP & secured debts). 1,514
Available for debt repayments........... -264
Monthly UNsecured debt repayments....... 671
Amount short for making debt repayments. -935

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -6,000
Total Unsecured debt.................... -32,780
Net Assets.............................. -38,780

Created using the SOA calculator
Reproduced on Moneysavingexpert with permission, using Firefox browser.

:eek:

RAS

Hi

Are the the costs for the whole household? What does your wife contribute?

james78_2

The costs are kinda like my half of everything. I didn't wan't to include her income as it's not her debt really....I had most of it before.

I also borrow about £300-400 of my wife each month to pay this stuff off - see knows I have a "small" amount of debt.

So I guess that amount can go towards negative figure for debt repayments.