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debt beyond belief and scared to do anything

dear all,hello . this is my first time in this forum and i need some good advice. me and my wife have numerous credit cards which must amount to 36000 pounds,up until now we have managed the payments but our spending still continues and the payments keep on rising, also at work they are cutting back on overtime.so soon i will not be able to make the minimum payments on the cards, also we have about 40000 in numerous loans etc,at the moment we are making all the payments and are good creditscores,although i have tried to get a consolidation loan but got knocked back. where do u suggest i go from here?need good advice as to whether to go the way of i.v.a. bankrupcy or whatever=pleASE HELP ME.mav:money: :confused:
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Comments

  • Hi and welcome to MSE, first of all don't panic, you're in good company. Everybody here is really nice and will do all they can to help and support you. Can you put up your SOA (statement of affairs) there's a sticky posted by Southern Scouser on how to do this. We can have a look at your incomings and outgoings and maybe be better able to advise you.
    Debt £171000 - Current Debt £168883
    Between Oct 08 and Apr 09 Pay off £12k = £2117/£12000
    £2 Savings Pot = £8
  • Hi welcome to mse! can you post a SOA monthly incomigs/outgoings debts, aprs monthly payments so we can help you. The first step to recovery is recognition that you have a problem well done! You don't really want to consolodate your loans but when you poat your soa we will be able to advise you better
  • Welcome! You are not alone, so I hope this comforts you a little! I'd think about what you buy each month, and out of that see what you can cut out. Think "Would I rather spend £x amount on Sky each month or put that towards debt?" "As much as I'd love to go out this weekend, how much will I spend?" If you like to go out, have friends over instead! Everyone brings a bottle of wine and a snack, put some music on and you've saved at least £30 (probably)
  • angelavdavis
    angelavdavis Posts: 4,714 Forumite
    Mortgage-free Glee!
    Hi and welcome to DFW!!!

    Here is the link to SouthernScouser's guidance to setting up your SOA:

    http://forums.moneysavingexpert.com/showthread.html?t=107280
    :D Thanks to MSE, I am mortgage free!:D
  • chevalier
    chevalier Posts: 7,937 Forumite
    Part of the Furniture Combo Breaker
    One of the first things I would do is get both of your credit reports from Equifax/Experien. If you sign up via www.quidco.com, you can get a free trial. Just make sure to cancel the direct debit before the end of the trial.

    Second both of you start keeping a spending diary. You need to know where your money goes. A newspaper and coffee a day, is maybe £50 just frittered away over the course of a month. A spending diary helps identify unneeded spending.

    Why do you overspend? Have you addressed any underlying issues related to the overpsending? Eg low self esteem, keeping up with richer mates etc?

    Whilst doing the above, if you sort out your SOA you may well find that there are areas we can suggest you save on. Sometimes you need someone else to see the wood for the trees!

    best of luck
    chev
    I want a job that is less than an hour driving away from my house! Are you listening universe?
  • hi, I'm new to the forum. We contacted the CCCS last August as our spending/survival was spiralling out of control. It's so hard and so demoralising though, having to survive on hardly anything a week and not being able to buy your kids any treats, or even basic stuff. What I want to ask is - will some of the credit card companies just wipe off our debts do you think? And if that were to happen, would the CCCS tell us, or just let us continue paying our pitance forever? It feels as though we're going to be stuck in this situation forever and it's so depressing and yes, I know it's our own faults, but we weren't buying luxuries on our cards, just essentials.
    Sorry, don't mean to whine!
    Best wishes and thanks to everyone for such great advice,
    Bo x:o
  • have got someone about an i.v.a coming tomorrow and am dreading it as i cannot find exact balances of debt that i owe to everone. have asked for credit report. will this tell me all of my debts?
  • LandyAndy
    LandyAndy Posts: 26,377 Forumite
    Part of the Furniture 10,000 Posts
    Why haven't you posted a statement of affairs? We can't really help you without one. Don't worry if you don't have all the information at the moment. Put up what you have. As well as helping us to help you it will also focus you on your spending and debts in a way that no other excercise can.
  • Storm
    Storm Posts: 1,749 Forumite
    Debt-free and Proud!
    Hi Maverick :hello:

    Firstly - before entering an IVA make sure that you've got some independant advice - CCCS are a charity who advise on debt problems, and whilst there is always a fee associated with an IVA (it has to be set up by an insolvency practitioner) their's will be the minimum, rather than private companies who are looking to make a profit.

    If you send for your credit reports (experion do one online) it will list all the companies & how much is outstanding, plus if there's any defaults, CCJs etc. You can then contact the companies for an up to date statement including the apr & minimum payments.

    A couple of things to remember about IVAs (I'm no expert though) - they are for 5 years, will trash your credit rating and the budget you're set will not allow for many luxuries at all. I believe that if you have assets then you could be expected to release capital (not *too* sure on this one though!)

    If you want to pop up a SoA we'll be able to see if there's areas you're paying over the odds at the moment, and if you do decide to go for an IVA it will start to bring everything together for that anyway.
    Total Debt 13th Sept 2006 (exc student loan): £6240.06 :eek:
    O/D 1 [strike]£1250 [/strike]O/D 2 [strike]£100[/strike] Next a/c [strike]£313.55[/strike]@ 26.49% Mum [strike]£130[/strike] HSBC [strike]£4446.51[/strike]@15.75%[STRIKE]M&S £580.15@ 4.9%[/STRIKE]
    Total Debt 30th April 2008: £0 100% paid off!

    PROUD TO [STRIKE]BE DEALING [/STRIKE] HAVE DEALT WITH MY DEBT ;)
  • CCCS_Emily
    CCCS_Emily Posts: 65 Forumite
    Hello Maverick1,

    I would suggest you have a look at all your options before deciding what to do. IVAs can be great but they have quite specific criteria, some companies charge upfront fees and, as they are legally binding, you are tied into the agreement.

    We have a free online advice facility called Debt Remedy at www.cccs.co.uk It helps you put together a budget and suggests options available to you.

    You should not have to pay to get help sorting out your situation.
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
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