30 grand in debt and in dire straits

robbieboxx_2

Hi, i'm around £30,000 in debt on 5 credit cards and on 3 of them i'm over the credit limit due to missed payments and late fees. I've already missed 2 payments on every card so i'm basically around 2 months behind on my minimum payments. I've had the usual late fees letters but now i'm getting a more sinister letters saying my debt may be passed to a debt collection agency and i will be reported to the credit agencies. I'm currently unemployed and have an interview to get Jobseekers Allowance this week but that will only be around £70 a week and obviously won't do any good as the £70 will be spent on rent (i'm currently living with parents) and my minimum payments are around £500 a month which i have no way of paying at the moment. Hopefully i have the chance of work in around a month but i'm dreading the next month. Should i contact the banks and let them know my situation and i want to know if an IVA is a viable option. Any help would be appreciated, thank you kindly.

Mort

Phone them up explain your situation and ask them to freeze interest, make notes of who you speak to and follow up with letters.

At the same time have a read of this article on this site which will give you some tips on what to do. You should also contact one of the free agencies (CCCS & Payplan) for some advice on IVAs and DMPs.

Tixy

Hi

And IVA is not going to be an option if you are just on JSA - the best you are likely to be able to offer creditors is token payments until your situation improves. You could do this by phone but there are template letters you can use too explain you only have JSA coming in and ask them to freeze interest.

R_P_W

You don't say how the debt was accumulated on your cards but do you not have anything to show for it that you could maybe sell on ebay to raise to funds to pay token payments to lenders?

Pippin12

You definitely need some proper professional advice before you do anything. However don't be tempted to go with a fee paying service because CCCS and Payplan do the same for free. Good luck.

DS4215

Ring up and speak to your creditors and offer them a minimal token payment (£1/week or £5/month) until you can get sorted. Worst case and they don't all play ball with you or you are unemployed for a long time, look into going bankrupt and write it all off...

Pippin12

Another option is a DRO (debt relief order) if your surplus income after paying debts every month is £50 or less. After a year if your situation hasn't improved yopur debts are written off. You would need to check with CAB/CCCS/Payplan to see if you qualify though.

gfplux

Do your parents know of your debt problems. They will want to know and perhaps they can give you moral support and advise.
In addition your problems may effect their credit rating.
If you have spent £30000 on credit cards you must have something you can sell such as cars, electronics, jewelary, cloths and shoes.