85 K in debt ; what to do

intherightplace

Hi my OH and I are 96 K in debt without mortgage. Monthly income is 2360 ( I am currently unemployed as contract just finished. I will work as soon as I can, however as we stand we are up to date with all payments but this will not continue after next month. Is there anything we can do.

On your forum it looks like a IVA would be a good idea, we want to avoid bankrupcy if we can. We have been offered a sercured loan of 75K over 25 years at 560 per month. It somehow feels that we should look into other options first.

If we are eligible for an IVA what are the downsides. does the bank have to know (small town where everyone knows your business?), if and when I get more work can we pay of sooner. Or should we try to organise a debt managemnt plan off our own back. Pleas help

isgman

Welcome to DFW, 1st please post your SOA here and one of the "More experienced" members will have a look and give you some great advice, in the meantime Don’t Panic and Don’t take on the Secure Loan until you have seen the advise you will be given on this site, Good Luck

CLAPTON

post a SoA and add other details like OH, children, house equity etc and say what your earning potential is and the likelihood of getting another contract

for details of SoA see

http://forums.moneysavingexpert.com/showthread.html?t=107280

missk_ensington

A SOA isn't going to help £96k of debt, how much is your house worth and how much mortgage is on it?

doelani

Can you post a new SOA, I noticed in March you posted stating your debts wer £55k, in tital of this post £85k but in post £96k???

I would not jump into anything as far as a secured loan is concerned and IMHO to take on a loan for 25years for £75k would be silly, it would not pay all your debts and is effectively getting you deeper in debt. You will already have added interest to your loans etc and will have penelties to pay them off early and then you will be paying interest again on this loan. YOU WILL BE PAYING BACK £168K FOR A LOAN OF £75K.

About 18 months ago we owed approx £100k and entered into IVA, this was after we considered a secured loan and then realised we were just getting deeper and deeper. Please contact CCCS or Payplan and get help. Do not take another loan.

IVA are not ideal for everyone but it worked for us. Everyone is different and as far as your bank knowing if you owe them money, eg overdraft tehy will need to know. remember all information that a bank has access to is confidential and this cannot be discussed with anyone, even if you do live in a small town. When we entered IVA I acually worked for a bank and we owed them a lot of money.

If you can get SOA posted a lot of others will be on later with advice but you seriously need to speak to someone ASAP.

Kevicho

missk_ensington wrote:

A SOA isn't going to help £96k of debt, how much is your house worth and how much mortgage is on it?

Getting into that much debt there has to be some serious cash flow problems and maybe even some spending issues, an SOA will help us help these people identify them and help change habits

Please post an SOA as we can help you maintain a level of spending which will be sustainable, even if it means you remortgaging to clear the debt, it would be pointless remortgaging just to rack up debt again

missk_ensington

Yes an SOA needs to be done, but saving £20 on shopping and a fiver on your phone bill..etc isn't going to clear nearly £100k of debt! All it will do if free up a bit more money to throw at it, perhaps making it take 24 years and not 25!
Unless you ave a lot of equity in your house I would look at bankruptcy, I've already said in another post that this is the very last resort and should be avoided, but I'm not sure how you can avoid it with this much debt.

Also, have you any idea where this money has gone? Can you sell some of the things you bought with the money to pay some off???

jobbingmusician

No one else has said this clearly, so I will.

Consolidation loans are generally felt to be a VERY BAD IDEA on this board. Try other things first - have you contacted PayPlan or CCCS to see if they can help? They are both debt charities who will try to help you see your way out of your problems.

I agree that you have a long way to go, but it won't hurt to post a SOA. It sounds from the previous post (' noticed in March you posted stating your debts wer £55k, in title of this post £85k but in post £96k') as if you are living above your means - hardly surprising if you are trying to pay off £96k quickly. We may be able to contribute towards the eventual solution, but it does sound worth talking to PP/CCCS.