confused.com

katieb.1983

hi there, am a confused. I have stupidly managed to get myself into quite a bit of debt over the last few years, totalling 25k with credit cards x3 and loan. I have a secure job where my income is around 1600per month, but am finding it hard to have any money left once ive paid the debts and my mortgage. I have not got to the point where am not reaching minimum payments or having threatening letters but am scared and having sleepless nights how this debt will keep growing with the interests added on.
Therefore i was thinking of applying for a consolidation loan over 5 years to clear my debts but was wondering if this would be the same as an iva?
Thanks for reading and please shed some light on my confusion if u can thank you xx:)

curly04

Katie

Please dont take a loan to cover your debts - I've been there and I've done that and that is where my problems started

I dont think you at BR stage but please speak to one of the debt charites and they will be able to help you set up arrangements with your creditors,

Good luck

Curls

pixiechick_2

Whatever you do, DON'T take out a consolidation loan. Speak to one of the debt charities and/or post your statement of affairs on the Debtfreewannabe board.

Good luck and post anytime with questions or for support.

preable

Do not take out a consolidation loan problems will occur after that just speak to some some Debt charities here is a recomended site

http://www.cccs.co.uk/

pippitypip_2

Def post your statement of affairs of the Debt Free Wannabe board, list ALL your outgoings etc.

They are a fab lot and will help you reduce your outgoings, make savings even where you thought you couldn't.

Then with the savings you make, chuck extra payments at the debt with the most interest (snowballing), keeping the others at min payment, until one debt it gone, and then move onto the next etc.

It will make you feel good seeing all the amounts come down and NO need to get a consolidation loan or debt management help.

MSErs poor opinion of consolidation loans is that you'll pay everything off and then run up the debt again on the cards you initially cleared. It's a very very bad idea and many of us have fallen foul of that trap before - myself included.

But to answer your question no, a consolidation loan is not the same as an IVA, and from the sounds of your situation, you shouldn't be looking at bankruptcy or IVA, or maybe even debt management if you can avoid it.

best of luck, and sounds like you've had your lightbulb moment in the nick of time before things spiral out of control.

pippitypip

IF

Hi Katiie and welcome, I can only echo what everyone has said.
Most importantly is contact one of the following debt charities. Please try these they don't charge and are impartial.
They will go through all your options with you and if they suggest bankruptcy then come back to this board and we will help you all we can. Also if your not ‘clicking’ with one of the Debt charities do try another.

Please don’t do anything rash take your time and weigh up your options and read everything you can x

Please click on Blue links below.

For ‘essential’ info this is Fermi’s sticky at top of the forum:-

http://forums.moneysavingexpert.com/showthread.html?t=1056083

These are the most used Debt charities:-

http://www.citizensadvice.org.uk/index/getadvice.htm

http://www.nationaldebtline.co.uk/

http://www.cccs.co.uk/

More Debt charities also on Fermi’s link:-

http://forums.moneysavingexpert.com/showthread.html?t=1056083

And do remember we’ve all been through this and anything you don’t understand don’t be afraid to ask.

Best wishes
If...x