Advise needed

debtaghh

Hi,

I have been looking and reading this site for a couple of years and have learnt lots. I have previously done a SOA but got hardly any tips because I was doing the cheapest etc already.

My partner earns a good wage and I am self employed. My business is not doing that well at the minute and I can't get another job as I have two children and the childcare would cost more than I would earn. My partner works shifts including weekends and evenings therefore I cant get an evening job as I wouldn't have any one to have the children. I don't have many family or friends local to help me out.

We have thousands of pounds worth of debt and live in a flat. I am finding it very hard to decide what to do with regards to IVA or DMP. We have contacted paypal and they have advised that we could do either. The problem is this means being stuck in our 2 bedroom flat for the next 6 years. One child is nearly a teenager and therefore cannot share with our toddler. We can't rent as it is more than our mortgage. We are not entitled to any benefits due to my partner's wage.

Basically what I am asking is, do we do the IVA and not move for 6 years? Or is there any other way? We pay the minimums but then seem to have to use our credit cards again.

I am finding it very hard and it is affecting my relationships with my family and partner as I am so stressed.

Thanks in advance.

Face1992

What kind of a "good wage" is your partner's good wage?

debtaghh

It is a wage that would be good to us if it wasn't for the debt.

Face1992

debtaghh wrote: »

It is a wage that would be good to us if it wasn't for the debt.

So more than what you could get child/working tax credits for?

Chop up the credit cards, you can't keep using them after paying the min payments on your debt if you don't have them.

debtaghh

Hi,

We use to get the basic £10 tax credits but lost that when they changed the amounts you could earn.

I know you are right about cutting credit cards but this months petrol is going on the cards as well as car repairs. There seems to be always something.

Thanks

Heffi1

How about posting a new SOA and let us have a look to see if there are any areas to cut

debtaghh

To be honest it is quite difficult for me to post my SOA as my income is so unreliable. I literally have gone to the cheapest of everything eg mobiles, internet, groceries. Our one luxury is sky basic package.

Pendle_Gazza

For the SOA, perhaps use either the minimum amount you've brought home in the last 12 months, or even the average over so many months. From what you have said, your job and the child care costs seem important areas to scrutinise, but without figures, it makes it more awkward to suggest anything meaningful.

bargainbetty

Perhaps you could consider selling the property, using any equity to clear the debts and going into a larger rented place for a while. You would be able to go into a DMP or whatever after that point with suitable housing?

Alternatively, could you make more creative use of your accommodation? Is either your living room or master bedroom sufficiently large enough to partition off? You could make a box room for the toddler's bedroom, and stay as you are. If your teen is in their mid-late teens, how long are they likely to live at home?

debtaghh

We are in negative equity so will have to pay more to sell our flat.

Our bedroom just about fits us in with the cot, there would be no way of making it into two rooms. Our daughter isn't a teenager yet therefore will be living with us for quite a few more years.

Thanks