Struggling with debt? Ask a debt advisor a question

beth3735

Thank you James,

I will cancel the direct debit with Stepchange when i know i 100% have that money in my bank, i will then pay my creditors all i owe apart from the last payment through Stepchange. So that once SC make that last payment to all my creditors i will be debt free So greatful that i have had this little bit of a money boost to be able to clear 5-6 months off my DMP.

I have had such a great service off Stepchange and will highly recommend to anyone i know needing help.

Sir_Blue

Hi,

Currently struggling and stressed almost daily as I just see the future stretching out in front of me with debt hanging around my neck.

Situation:
Halifax loan £12,000
Halifax Loan £15,000
Halifax Loan £6,000
Student Loand £4,000
Credit Card £4,000
Overdraft £3,500
Nightmare £44k

It is all my own fault obviously but I need to sort this out before it makes me ill.
I have negotiated with Halifax to pay reduced amounts for the next 6 months (3 months in) and then reassess (situation will not change in this time).
I have written to the credit card company and am awaiting a response.
I have not spoken with the student loan company as yet.

I earn £36,000 per annum and my job is fairly secure but with 2 small children and my partner working part time there never seems to be enough.
I also have a joint mortgage with little or no equity and a car worth approximately £1,500.

Is an IVA right for me or do I keep negotiating as I have done to date?

Any advice is appreciated.

mum2one

Sir_Blue wrote: »

Hi,

Currently struggling and stressed almost daily as I just see the future stretching out in front of me with debt hanging around my neck.

Situation:
Halifax loan £12,000
Halifax Loan £15,000
Halifax Loan £6,000
Student Loand £4,000
Credit Card £4,000
Overdraft £3,500
Nightmare £44k

It is all my own fault obviously but I need to sort this out before it makes me ill.
I have negotiated with Halifax to pay reduced amounts for the next 6 months (3 months in) and then reassess (situation will not change in this time).
I have written to the credit card company and am awaiting a response.
I have not spoken with the student loan company as yet.

I earn £36,000 per annum and my job is fairly secure but with 2 small children and my partner working part time there never seems to be enough.
I also have a joint mortgage with little or no equity and a car worth approximately £1,500.

Is an IVA right for me or do I keep negotiating as I have done to date?

Any advice is appreciated.

Youve done the best thing that is notifty the creditors that you have had problems, I did that myself for 12 months, my debt was 23k, - but in the end each one just wanted a bit more each time, - in the end I contacted CCCS - and they were brilliant, the first thing to do is fill in there budget remedy (find a link in a mo - there in most of stepchanges post) fill this in and this will tell you what the best option is, it may be a DMP it maybe an IVA. But whichever way it is - it give you an idea.

The debt remedy goes through all your expenses, and for me everyone has been so helpful xx

StepChange_James

Sir_Blue wrote: »

Hi,

Currently struggling and stressed almost daily as I just see the future stretching out in front of me with debt hanging around my neck.

Situation:
Halifax loan £12,000
Halifax Loan £15,000
Halifax Loan £6,000
Student Loand £4,000
Credit Card £4,000
Overdraft £3,500
Nightmare £44k

It is all my own fault obviously but I need to sort this out before it makes me ill.
I have negotiated with Halifax to pay reduced amounts for the next 6 months (3 months in) and then reassess (situation will not change in this time).
I have written to the credit card company and am awaiting a response.
I have not spoken with the student loan company as yet.

I earn £36,000 per annum and my job is fairly secure but with 2 small children and my partner working part time there never seems to be enough.
I also have a joint mortgage with little or no equity and a car worth approximately £1,500.

Is an IVA right for me or do I keep negotiating as I have done to date?

Any advice is appreciated.

Hi Sir Blue,

It's hard to say if any IVA is right for you but it does sounds like it's worth a look. While it's really hard to generalise about "typical" situations where an IVA is the right thing, you seem to fit the profile. This is: earning higher than average, having a quite a bit of debt, little or no equity, inexpensive car.

That's not to say an IVA is your best option but you don't seem to have any of the obvious reasons for it to be the wrong option.

It's great that you've decided to take positive steps to deal with your finances. I'd suggest getting some advice from us to explore what options will work best.

Like Mum2one mentions, it can be stressful dealing with your creditors alone, so I'd recommend using our online advice tool Debt Remedy (http://www.stepchange.org/msehelp). It'll take your financial details and then put together a personal action plan to help you work out what to do.

If an IVA is the right option there'll be an option to request to speak to one of our IVA advisors (though obviously you can get advice from other IVA providers too).

Kind regards

James

mistygrant

When the economy is stable, there is little time to worry about issues like the debt to income ratio and break-even points because as long as the revenues continue to flow, it's not a pressing need to have to deal with debt.

StepChange_James

mistygrant wrote: »

When the economy is stable, there is little time to worry about issues like the debt to income ratio and break-even points because as long as the revenues continue to flow, it's not a pressing need to have to deal with debt.

Hi misty,

Interesting comment. Thanks for posting. If you've got any questions about dealing with debt please feel free to ask.

Cheers

James

Cant_do_right_for_wrong

I'm in a DMP and so far its been good. I owe £36000 to 6 creditors and i'm paying it off at £325 per month.
I'm currently considering an IVA but this seems very intrusive and it doesn't seem i'm not allowed to have any form of savings (in case my 12 year old car explodes etc)
I am more than happy to pay my debts in full without having the cost slashed but this seems more difficult than you'd think.
I can pay off one of my creditors within 2 months BUT this might be seen as preferential treatment by the others, so I cant do that.
WHY?
I am trying to do the right thing by paying them off as quickly as possible, in full, but it seems this isn't allowed.
So I either have the IVA, where any overtime or pathetic payrise has to be declared and no savings.
Or
I stick to paying £325 pm and it taking me at least 15 years to finish.
THIS MAKES NO SENSE TO ME!!!

Sir_Blue

StepChange_James wrote: »

Hi Sir Blue,

It's hard to say if any IVA is right for you but it does sounds like it's worth a look. While it's really hard to generalise about "typical" situations where an IVA is the right thing, you seem to fit the profile. This is: earning higher than average, having a quite a bit of debt, little or no equity, inexpensive car.

That's not to say an IVA is your best option but you don't seem to have any of the obvious reasons for it to be the wrong option.

It's great that you've decided to take positive steps to deal with your finances. I'd suggest getting some advice from us to explore what options will work best.

Like Mum2one mentions, it can be stressful dealing with your creditors alone, so I'd recommend using our online advice tool Debt Remedy.It'll take your financial details and then put together a personal action plan to help you work out what to do.

If an IVA is the right option there'll be an option to request to speak to one of our IVA advisors (though obviously you can get advice from other IVA providers too).

Kind regards

James

Thanks James I fully intend to contact yourselves this weekend.

It is such a worry, I often find myself robbing Peter to pay Paul, my other half will find herself over her OD limit bbecause we need to buy food etc which means that as soon as i get paid I lose some of my salary to immediately taking her OD back below the theshold and this repeats itself at the end of the month.

When I think of the size of the debt £44 it really pushes me towards depression - I am 37 years old and I feel it is going to take the rest of my life to pay this off - not a nice feeling.

Has anybody come through such a situation without the use of an IVA and did it take the rest of your working life?

If an IVA is right for me can you tell me what happens given that I have a joint mortgage with next to no equity.

Thanks for all your help

Sir_Blue

Cant_do_right_for_wrong wrote: »

I'm in a DMP and so far its been good. I owe £36000 to 6 creditors and i'm paying it off at £325 per month.
I'm currently considering an IVA but this seems very intrusive and it doesn't seem i'm not allowed to have any form of savings (in case my 12 year old car explodes etc)
I am more than happy to pay my debts in full without having the cost slashed but this seems more difficult than you'd think.
I can pay off one of my creditors within 2 months BUT this might be seen as preferential treatment by the others, so I cant do that.
WHY?
I am trying to do the right thing by paying them off as quickly as possible, in full, but it seems this isn't allowed.
So I either have the IVA, where any overtime or pathetic payrise has to be declared and no savings.
Or
I stick to paying £325 pm and it taking me at least 15 years to finish.
THIS MAKES NO SENSE TO ME!!!

I totally agree with this - I am sat here wondering if I really wish to take an IVA etc because of the what it means (sorry but I feel ashamed at getting myself into such a position and to take an IVA makes me feel like a complete failure and a bad person).

The DMP alternative as it seems you are finding out appears to me to get you nowhere fast although I like the idea of paying all that I owe I struggle with the thought of this hanging around my next for 15 years or more.

sbsj2

My Gaughter has just received a letter stating her overdraft is being withdrawn and rather than the £2 a day the Halifax has been charging she will now have to pay £5 per day. As, due to her bipolar health problems she is unemployed and receiving ESA she cannot afford this amount and is unable to deal with the stress of changes like this what are her options in handling this change ? She tried to talk to the bank (phone) today but they would not as she struggled with some of the back up security questions so they would not discuss her account.

Regards

Steve