What option do i have?

Bobby81

Hello everyone, im new to this site, we currently have about 34000 in debt we have managed to pay it and have never missed a payment anyway to save some money before things get worse we tried taking out a consolidation loan but keep getting turned down. Some agency suggested taking out one of these IVAs instead of a loan, im not sure what to do now, would we really save more money doing this and only have one payment. Dont get me wrong we are not in trouble but i cant get it out of my head and everyday worry about money, there is just too many outgoings in our bank, i want it all gone so i can relax a little, any suggestions??

BONJOEY

if you do take out a IVA this will damage your credit for years!!,
why not do an SOA so everyone can have alook, and see if we can help you xx

Bobby81

Do you mean as in how much we earn and what loans we got,

Ok here goes
Per month
Husband Income: after tax £1300
Mine: £470
Child Benefit: £116
Tax Credits: £770


Outgoings

Childcare: 878
Rent:180
Elec: 21
Gas:33
Phone:40
Mobiles:53
Car Insurance:48
Insurances:40
Child trust Fund: 20
1st Loan owe £17600 pay £407
2nd Loan owe £8000 pay £185
Car Loan £8200 pay £180
Overdraft:£2000
Credit Card: £6000 Limit owe £400
We also have 3 other credits cards but dont owe on them one of them the limit is 10000 BUT we cant have a consolidation Loan....STRANGE

Bobby81

I said to my husband yes it will damage are score even more but its poor anyway so can it get any worse?

jonesMUFCforever

The obvious payment to try and reduce is your childcare costs. How old are the children? Is there an after school club or breakfast club if they are old enough at their school?
Also do you really need to spend £53 on mobile phones?
In your SOA I don't know how you eat or clothe yourselves as you have no amounts for this?
If you go for the IVA then your credit cards will be blocked and your bank account frozen if it is overdrawn. Have you seen CAB or contacted National debt helpline?

beach_3

Hi

someone once did advice that it is best to close any credit card accounts that have no balance on them because big credit limits mean that in theory you have that available credit which might be considered when they are calculating how much you can borrow. Is the child care cost right it seams a lot. Sorry I cannot give anymore advise I am needing advise myself I am afraid. Have you been on the debt free wannabee board, someone on there may be able to help. Good luck anyway.

Bobby81

Yeah im afraid its right, its the going rate round here, i pay something like 230 pound a week for 2 kids from monday to friday from 1.30-5.30 its mad!!!! Thanks anyway Good Luck yourself LA xxx

beach_3

Sorry to seam rude but why such high child care costs when your earnings are bout half those costs. Would it not be cheaper to stop those costs and stay at home to look after them.

I hope someone gets back to you with some good advise

Bobby81

i get 80% of my childcare paid for, i think i put that under income will check now

Bobby81

Yeah i did
Ok here goes
Per month
Husband Income: after tax £1300
Mine: £470
Child Benefit: £116
Tax Credits: £770

lol

jonesMUFCforever

This might be obvious but if you are only earning £470 per month why not give up work and save £900 ie by not working you will be £400 better off.