£78,000 Credit Card DEbt

Sensible77

Started the process. Cancelled TV rental and Sky. Was expecting a bit of resistance from Sky, but got none. Very supportive wife who will cut down on food bill & look for full time employment. Got quite a bit of stuff we can sell via Ebay and car boot sales. Equity in the house is approx. £40K so I'm not sure if refinancing will help.

Sensible77

Forgot to mentrion that I've applied for a current account with the Co-Op. I have never had any financial interest with them and have not asked for an overdraft, so I hope I'll get it!

beentherewornthetshirt

Hi

I own a debt advice company, I have input your figures into our statement of means and you would not qualify for an IVA as your surplus income is insufficient and a few of your creditors will only accept IVA's at over 45p in the £. This means that you would need approximately £750 surplus income each month which would just not be sustainable for you.

My company helps people with their own DMP's absolutely free of charge.

We calculate your monthly payments to creditors on a pro rata basis, produce a statement of means on your behalf and raise letters for you to send to creditors. We will also help you through the process and give you advice whenever you need it.

Let me know if I can help.

Good luck

plumduff-2

A DMP done free of charge... And work nationally...? Then you are either from CCCS (not c-c-c-s.com) or Payplan... The only others who give free advice are CABs and local authority money advisers...

OP beware... you dont get anything for free unless from one of the above I have mentioned..

Penningtons, Bainst & Earnst, Churchill and all the rest charge...! ! Do not pay for debt advice... Go to CAB... Or what I would suggest (as a provider of free debt advice with a local council) is to contact an Insolvency Practitioner for further advice, especially regarding IVA and the bankruptcy option...

Grant Thorntons (no link to me whatsoever) give free initial interviews and will tell you which option is best for you... If that means a DMP with CAB or whoever, then they will advise this...

Good luck.

beentherewornthetshirt

I do not work for the CCCS or Payplan etc, I work for myself and am absolutely sick to the back teeth of unethical companies such as those you have named.

I anyone approaches me and wants to do DM themselves I am more than happy to help them with that on a pro bono basis.

gingersilverfox

Debt management is only really an option if you are confident that you will not seek out more credit during the THIRTEEN years it will take to clear the initial debt.(based on £500 disposable) Don't forget that the interest on the debts will probably NOT be frozen. Therefore after THIRTEEN years you will have to pay off the accumulated debt. How long will that take????

Your are insolvent. Your family disposable income is £500. Couple that with £40k equity, an IVA would be the most suitable solution to your problem.

Action points
#1 Seek out an IP.
Ask about their fees etc. As this will have an impact on dividends paid to creditors if the fees are too large.

#2 Ask about an equity only IVA.

#3 Once you are in an IVA you can start economising and use the tips provided on this website to balance your income with your expenditure.

Good luck

bectoria_2

As you can see I have similar levels of debt to you but my disposable income is much lower (£190 per month). I am on a DMP with payplan and its been hard but all my creditors HAVE frozen interest and accepted my monthly payments.
No I can't have credit for a very long time (I don't want it!) but thats not the end of the world, I now buy what I can afford and thats all.

You really need to contact CCCS or Payplan to get advice on all the options. They may advise an IVA, just be aware as you have equity in your house an IVA may require this to be released, hence why I chose the DMP option.

Sensible77

I've contacted PayPlan and they will be ringing me on Tuesday evening to go through my situation in detail. Hopefully, they will be able to arrange a suitable solution.

mrsp1981

My husband was granted an IVA in Oct 06 for 25p in the pound.

Payplan arranged this and were extremely helpful throughout!!!

tomterm8

I would start by writing this letter http://www.nationaldebtline.co.uk/england_wales/temp/7624_34531.pdf to all the creditors.

Latter, after advice, there is nothing stopping you from writing this http://www.nationaldebtline.co.uk/england_wales/temp/4161_72131.pdf or this http://www.nationaldebtline.co.uk/england_wales/temp/6111_78711.pdf ...