£26k debt help

Johnhowell

pinchez wrote: »

If someone thinks this is a bad idea shout up!

I do not know the answer, Pinchez, but look at the Snowballing calculator - http://www.whatsthecost.com/snowball.aspx. This will tell you how to pay off the 4 credit cards in relation to time and least interest. You can then compare this to the consolidation loan.

If you read through a lot of the messages on this forum - consolidation loans are not usually advised.

Good luck.

pinchez

Paul - her debt breakdown is £11k loan and £7k on 7 different payday loans

I can see how it doesn't look good to consolidate the credit cards but if my wife is going to be paying her debt that I didn't even know existed that means she can't contribute to paying the cc's off like we planned. So it's going to take much longer to pay these off on my own and allot of that will be interest.

She's pretty much destroyed her credit with all this debt so where trying to maintain mine but for both our futures.

I'm thinking if she goes down IVA route of 5 year at £166 per month and I pay a loan on the cc's at £200 per month we might just get through this with light at the end of a 5 year tunnel which is still a long time of scrimping!

Gimpsdad

Paulmapp posts "The IVA isnt flexible - what is agreed at the outset is what you pay for the complete term."

This is completely wrong. IVA's can be and are reviewed whenever necessary, and notwithstanding that, by law annually. As the OP's are tenants, there is no equity clause and so an IVA would be 5 years and not 6.

The advice to consult HR/Union rep is bob on though, some banks will happily let their staff go on DMP (well, not happily, but you know what I mean) and not IVA, and other banks are very supportive of people in IVA's.

Good luck.

afly

Hmm, tough spot pinchez, ordinarily an IVA would seem to be the way forward here, but given she works in finance, a worst case scenario would see her unemployed. As mentioned above that doesn't always happen these days. If that's the route you take, it is worth considering and planning for should it happen.

The only other solution I can see, is for you to take the loan and use it to pay her pay-day loan balance. I know that completely sucks but if you are to get out of the situation without a debt scheme and jeopardising her employment, you MUST get rid those, or they will keep on spiralling and cause you both untold problems in the future. It would be true love indeed and a tough few years, but I think both options are going to be a bit like that

How much she earns in banking is an important factor. vs it off the 7K. Going on the worst case above, if she earns 20k+ a year for example, it makes more sense to keep the job and pay the debt than lose the career and go job hunting in this climate as a credit pariah

Best of luck

AndyPanned

Great as the CCCS are one must keep in mind they are bank funded and much as it is not for me to question their sense of balance, it may well be that her SOA is not realistic. Take time to really consider your expenditure items, the temptation when addressing an issue that demands frugality is to over compensate on outgoings making them less than they truly are (how much does she honestly spend on food/petrol? etc)

I would certainly take time to research what one contributor posted re Joint affairs, whilst it is true to say your credit rating will be affected by here entrance into a DMP if you share liability on any of the items going into the DMP I think joint mortgages etc should not be a problem (as long as you are maintaining payments of course)