New here, please help with IVA question

lilypie

Hi, I am new here, having finally pulled my head out of the sand. Just got to get dear husband to do the same now! Basically, we have run up too much debt. Up until now have always managed to make loan payments and minimum credit card repayments but lived in a vicious circle for years of building up more debt as by making all repayments and on time, there's never been enough left over, so rely on more credit, and the vicious circle continues. We even sold our house and used the equity and have gone into rented, but the equity has just about all gone - we used it to clear higher rate cards.

So, we are working all the hours we can, we bring in a decent enough income, around £4k joint per month (but leaves us frazzled and ratty with the kids) but we are about to run out of funds and just don't know what to do. Have already had a few consolidation loans, don't think anyone would lend us anymore. Do we get an IVA? Will this leave us unable to get a mortgage? (we are due a windfall from a family member, around 20k, but they will insist we use the money to buy a house, they would have heart failure if they knew the level of our debts). To be fair, owning a house isn't my top priority, getting debt free is, but I just don't know how much I'm going to damage our future prospects for a mortgage if we go down the IVA route. Or, will it affect us renting a cheaper property if we have an IVA? Our rent is too high but we've signed a 12 month contract, will move as soon as we can to a cheaper place. Almost all the debt in my name, but obvs husband linked through association.

Should I go to citizen's advice? Next month with the equity gone we are going to be almost £1000 short, and it will build from there. It is our mess, we have been rubbish with money, but I really want to get it sorted and move on. We work so hard, our kids suffer for it, and have nothing but struggles to show for it, I know it's our doing, but god what a mess.

Have started reading through the stickies and previous posts, am going to find it all really helpful. Many thanks in advance. I hope all that makes sense, my head is scrambled with sitting on excel all morning....

jessie4109

I would have a look on the stepchange website and see what it recommends for you then take it from there.

~Beanie~

Hi

I don't think anyone can advise whether an IVA is best for you without knowing the full picture. It would affect your chances of getting a mortgage for many years though.

£4000 is a lot of money coming into the house, to see where it all goes can you fill in an SOA - there is a calculator here: http://www.stoozing.com/calculator/soa.php and post the results, then people will ge better placed to advise.

Good luck!

lilypie

Bit delayed but thank you for the replies. THank you for the advice, I have completed the stoozing and by gosh we've gone wrong over the years. I think I will have to go for an IVA, I just can't afford to keep my head above water anymore. Please can anybody tell me how much this will affect my husband's credit? Would he be likely to get a mortgage whilst I am on an IVA, even if they take on board his income alone? Thanks for any help, much appreciated.