Going Backwards fast....

Bin_Man_Lorry

Desperate for good advice!
My spouse and I have a monthly net income of over £4K, household outgoings including childcare of £3.5K, but have amounted considerable debt, initially through irresponsible spending, then compounded whilst partner wasn't working, of over £45K; 50% loan and number of credit cards, 0% where possible totalling £1350 pcm on repayments and going backwards fast. Issue with spouses credit rating has affected mine. Been advised IVA! Would much prefer to consolidate but where and without unreasonable penalty? I'm in pieces and don't know where to turn and I just want to try and do this right?? All help and advice would be very gratefully received. Thanks in anticipation.....

Mara69

Hi and welcome to MSE.

You need to repost on the Debt Free Wanabee board. People that post on this board are brilliant at offering advise and support for those wanting to be debt free. They will ask you to post a warts and all SOA (statement of affairs) and will look at your incomings and outgoings to see where you can make cut backs. They can also offer advise on DRO's, IVA's, bankruptcy etc.

Good luck.

BugsyBrowne

Bin_Man_Lorry wrote: »

Desperate for good advice!
My spouse and I have a monthly net income of over £4K, household outgoings including childcare of £3.5K, but have amounted considerable debt, initially through irresponsible spending, then compounded whilst partner wasn't working, of over £45K; 50% loan and number of credit cards, 0% where possible totalling £1350 pcm on repayments and going backwards fast. Issue with spouses credit rating has affected mine. Been advised IVA! Would much prefer to consolidate but where and without unreasonable penalty? I'm in pieces and don't know where to turn and I just want to try and do this right?? All help and advice would be very gratefully received. Thanks in anticipation.....

It's going to take longer paying pack your debts then it is having a fresh start and going bankrupt and a clean credit file in 6 years time.

Many people used to have this obsession on saying We are to proud to go bankrupt and I will pay back every penny I borrowed until they realise being proud only makes you miserable.

Go bankrupt if I was you.

Bravehearted_2

Bankruptcy stays with you forever. Not just 6 years.

How much that affects people differ, but its a gross understatement to say 6years and everythings gravy again.

ViolaLass

Since your childcare takes up more than three quarters of your salary, it would be worth considering how much better off you might be if you of you didn't work. I know this isn't necessarily a long term solution but it could save you a lot of money right now.

BugsyBrowne

Bravehearted wrote: »

Bankruptcy stays with you forever. Not just 6 years.

How much that affects people differ, but its a gross understatement to say 6years and everythings gravy again.

You better tell all the Ex-bankrupts on this forum who got a mortgage after 6 years and the Zopa loans and the 0% credit cards that they are all liers then.

sheilds

ViolaLass wrote: »

Since your childcare takes up more than three quarters of your salary, it would be worth considering how much better off you might be if you of you didn't work. I know this isn't necessarily a long term solution but it could save you a lot of money right now.

I think OP meant childcare was included in all their outgoings of £3.5k.

ViolaLass

sheilds wrote: »

I think OP meant childcare was included in all their outgoings of £3.5k.

Re-reading it, I think you're right. Makes a bit more sense!