IVA....Scared

markp2_2

Hi,

1. Please be patient with me I am wanting advise as I am at my wits end,cant sleep etc I expect people here know what I mean,whats worse is I know its my own fault,I have always put providing everything for my family before considering the consequences and now I am paying the price.Although I am just about paying the min payments to my carc companies they are starting to hike up my interest rate putting me into a worst situ,they then give me the option to opt out and retain my original rate,I have done thid with Egg and this week Citi so two cards gone. We are getting to the stage where we cant even go and buy our groceries at the end off the week although both my wife and I thankfully are working and bring in a healthy wage,I have wanted to post here for sometime but really dont want to be branded stupid because believe me I already feel it !!! We are now considering the IVA option but my main concern is the security of our home, do we risk losing it with the IVA option.I have listed below detail of my MESS......Please help..I really feel desperate,sorry to ramble but I am finding this hard...pride and all that.

markp2_2

Egg card Balance 7700.....
Mint card 5600...
Citi card 4400...
MBNA 13000...
Barclaycard 12000...
tesco 6500...
car hp ( 1 yr )left 2300..
Bank overdraft 5000 ..Mortgage 189000...current house value 250000

dancingfairy

Hi - fnd me someone who had never made a mistkae in their life. What matters is that you know there is a problem and are ready to take action to sort it.
What I would suggest is that you contact one of the free organisations that can help you - some of these are National Debtline, CCCS or your local CAB.
An IVA may or may not be the right solution for you - it is hard to tell with little details - but some private companies tend to sell it as 'the answer to all your debt problems' - generally it is only suitable for a small part of the population but the debt charities can tell you if it is a possibility for you.
What you might find useful is to get a seperate bank account away from who you owe money to without an overdraft and get your wages paid in there - you can then be in charge of your money and start with the most important things - ie mortgage, council tax, gas/electric, secured debts, food etc and then you can see what is left that can be shared between your unsecured debts - this will begin to put you back in control and ensure that you are not left in a situation where you are unable to put food on the table or pay the mortgage.
df

sfjnet

Markp2, your story reads pretty much like my own, and probably many others who visit this board. I can totally empathise with your plight and your distress at things getting so out of control. Of course we can all blame ourselves, but also our "credit? no problem" culture that makes it seem Ok to take on more and more debt. At least you seem to have healthy equity in your home which is more than many have (including me unfortunately). I agree with dancingfairy that you should consult FREE services to find out your options. If you are thinking of an IVA then you could also approach an Insolvency Practitioner (read some reviews to find a good one) and they will talk you through it. In any event you WON'T lose your home under an IVA although with such healthy equity in your house you would almost certainly be required to re-mortgage (if possible) to free up cash to pay your debts. I'm fairly new to all of this as well so cant offer detailed advice, but you have done the right thing by admitting the problem and seeking help. Very best of luck to you.

Tixy

Hi Mark and welcome to the forums.

Just want to echo what the others have said. You are not alone in making financial mistakes and at least you have now realised you can't go on as you are.

As a first step I would write out a detailed income & expenditure account to see exactly how much you have left for debt repayments after essential expenditure. This is a good format to use and it reminds you to include everything even costs you don't pay out each month - it also sets out all the debts, aprs etc http://www.makesenseofcards.com/soacalc.html
Once everything is written on 1 page you may find there are some changes/cut backs you can make which will increase your disposable income.

Then once you have that completed I would contact one of these recommended organisations - http://forums.moneysavingexpert.com/showthread.html?t=2077631
to discuss your situation and options. You will not be obligated to them in anyway and if you are still thinking of IVA/bankruptcy its usually best to seek advice from more than one source.

Good luck with it all.

pure_dead_dopey

Markp2
I know exactly how you feel as this was the way we previously looked at life too. We had our LBM just after Christmas when another rate hike plopped on to the mat and we realised that we were never going to get this sorted without some help. These boards have been invaluable and I agree with everything that dancingfairy and sfjnet say, take that first step with one of the free guys and it can be sorted out. Our DMP started this month and it has been frustrating but NO ONE has been horrible, just a bit unrealistic and we've had a load of acceptances already, so it can be done and out debts are higher than yours!!!

Tixy

Hi Susan

Firstly try to sort the letters into piles one for each debt, the sort each pile into date order to give you an idea of the current position but also the history of each one. Then once you have managed to assemble a list of all the debts (along with how far along any action is) I would post that list on a new thread on the debt free wannabe board (by clicking here - ).

We will advise and help all we can.

susanboylefan

Tixy wrote: »

Hi Susan

Firstly try to sort the letters into piles one for each debt, the sort each pile into date order to give you an idea of the current position but also the history of each one. Then once you have managed to assemble a list of all the debts (along with how far along any action is) I would post that list on a new thread on the debt free wannabe board (by clicking here - ).
Tixy
Thank you for your help I genuinely appreciated it. I don't want you to think I wasn't genuine but I've decided as it's not my personal problem I'd better not post someone elses business at the moment Thank you.