my debt got worse...

legoman

sanfrancisco wrote: »

With the £650 pay off these debts:

Capital one card – Balance £180 (limit £200) APR 19.9%

Capital one business card Balance £150 (limit £200) APR 19.0%

Personal Barclays account - -£6.98p

Shut them all down immediately. You will gain the psychological benefit of going from 7 debts to 4. Wah hey!

With the remaining £300 I would pay the Aqua card:

Aqua card – Balance £900 (limit £850) APR 35.9%

Pay this off over the next 2 months.

You will then be left with 3 debts. You really need to get a higher paying job. What does the equivalent job pay locally? I don't understand why the loan has jumped up so much. It really depends on you. If you were really focussed (and got new job) you could pay all the debt back. You are lucky to have REALLY low outgoings. If you arn't keen to knuckle down then go for IVA. However, do check out whether this will efect you owning a company in a few years.

Other debts:

Barclaycard – Balance £4000 (limit £3,500) APR 14.9% interest added for missed payments.

Barclays Business loan. £16000 at £333.00 per month starting march 17th 2007.
This has now been terminated and has gone to £22.344.52p
Account balance - -£1723.45p

wow, never looked at it like that!!!! i see £650 as a life line incase. i always kee it above £600. if do as you say, will this make me look a little better when entering the IVA situation??? i realy think an IVA would benifit me with the larger loan? Thanks so much!!!!!:T

Sea78

Hi - glad to see you're feeling positive!

What was the loan for? Was it for consolidation? If you've only just got it and not made any payments on it due to the payment holiday, where did it go?

Only asking as these kind of things will need to be considered if you do decide to go for an IVA - but I don't know if you're going to be successful as if you clear those smaller debts, you will then have enough money to pay the loan - so you are able to cover your outgoings. Yes, it might be a long time to cover it, but with an IVA ANY money you get during the IVA period would go to the debt, and may then make you more down about it. I really would consider your options as you can afford this, it'll just make things a little tight for a while.

Sea xx

Bunnyinthelights

Lego man,
Please look into an IVA carefully as I seem to remember that you need at least 6 debtors to go into one.

What was the loan for?

I am assuming the re-payment for the loan is the higher figure because you had not considered the interest added plus did you have PPI? (payment protection insurance?)

Bunny

mrslawrence2003

just wondering about your business loan - surely you need to be a business or involved in a business if you get a business loan? in this case, is it an unsecured loan or has the loan been secured against assets belonging to the business?

to be perfectly and brutally honest, i dont think you've had your lightbulb moment at all, and i dont think you're really grasping your situation as yet. you're in financial trouble and you want a quick-fix answer without addressing any of the problems as to why you are in this trouble in the first place. easy to say you dont want anymore credit when things are tough, but i bet once you get rid of this debt you'll end up in the same cycle of problems.

the amount of debt to the income you have is quite high. however your outgoing s are extremely low. i dont think an iva would be the best answer for you, but that it would be far better for you to increase your wage and clear your debts that way. if you work for your father you could negotiate for an increase in wages that would help with your debt repayments.

as regards payplan 'forgetting' to tell you info - did you forget to tell them bits? did they have the full picture of your finances?

NekoZombie

mrslawrence2003 wrote: »

the amount of debt to the income you have is quite high. however your outgoing s are extremely low. i dont think an iva would be the best answer for you, but that it would be far better for you to increase your wage and clear your debts that way. if you work for your father you could negotiate for an increase in wages that would help with your debt repayments.

a

I was under the impression that you need to be insolvent (i.e. have more going out than coming in) in order to do an IVA.

Wafoo

Yes,lookin at your SOA,you've no reason to look into an IVA,just do as above,pay off the expensive cards,grovel to your Dad and se if you can get a bit more out of him,few years with tight strings,you'll be debt free

legoman

mrslawrence2003 wrote: »

just wondering about your business loan - surely you need to be a business or involved in a business if you get a business loan? in this case, is it an unsecured loan or has the loan been secured against assets belonging to the business?

to be perfectly and brutally honest, i dont think you've had your lightbulb moment at all, and i dont think you're really grasping your situation as yet. you're in financial trouble and you want a quick-fix answer without addressing any of the problems as to why you are in this trouble in the first place. easy to say you dont want anymore credit when things are tough, but i bet once you get rid of this debt you'll end up in the same cycle of problems.

the amount of debt to the income you have is quite high. however your outgoing s are extremely low. i dont think an iva would be the best answer for you, but that it would be far better for you to increase your wage and clear your debts that way. if you work for your father you could negotiate for an increase in wages that would help with your debt repayments.

as regards payplan 'forgetting' to tell you info - did you forget to tell them bits? did they have the full picture of your finances?

you're right, i do want a quick-fix!!! don't we all... haha. mt total outgoings a month including just my main loan and barclaycard come to over £700... this means my outgoings are more than my income.

my business loan is originally a consolidated loan from hsbc. my parents divorced when i was 17 and had to move out as i couldn't live with any of them due to complications. to fund rent i took out a loan. this snowballed to keep up rent and eventually i was 10k in the hole. HSBC strted demanding payments i couldn't keep and at the time i started a business designing websites after being unemployed for two years. i went through action 4 employment and had to open a business account with barclays. i took out a loan to pay off HSBC which, as i didn't have a clue about this site, had to be for £16000 minimum. then the other day when i said i could'nt pay them the first installment they sent the final demand the next day and it came to £22.344.52p.

the rest of the cash just dwindelled away on food, rent and bits here and there. so basically i can pay off the small debts but this huge debt is breaking me.

mike.

legoman

i just called payplan and they have told me that barclays debt is priority. i must pay them not any others!!!! they are going to try to set up a plan for me earlier than the 'three payments to barclays before we can help' situation...

legoman

mercers... i sent a letter to them yeasterday after getting 6 phone calls a day both evening and at work, letters with offers and threats and now text messages!!! my letter told them of my priority debt to barclays but haven't heard back yet. (i didn't mention barclays name)

i litterally told them that they may only contact me thorugh letters and that i must pay my priorty arrear over you. also that i will keep sending the token payment until payplan interveen. also that their persistant and inconvienent calls are noted and if they continue i will be forced to send literature on legislation regarding harrasment.

thought i might share this with you in case people are having the same problem.