IVA's

mbz666

Hello all, just a bit of advice needed please.
Between me and my wife we owe £44k. £4k of it is on a car we are still paying up to date, £200p/m & 2 yrs left, another debt, £800approx is being paid off up to date £40p/m. But the rest are all defaulted unsecured loans/cc's.

Mostly we have agreed to pay them all £25p/m, a couple are on ccj's as well. But to be honest even without the two big ones £13k and £12k, everything is just getting me down.
Roughly worked it out that it will take 10-13yrs to pay everything off, then another 6 years to clear our credit rating, to be honest dont think I can wait that long to get a mortgage, or even a catalogue, lol. But basically to just feel normal again.

Someone told me that an iva clears all your debts in 5yrs, but what happens to your credit rating in the future with this option, say after 8 years from now.

Any advice greatly appreciated, thank you

james32_uk

http://www.payplan.com/individual-voluntary-arrangements.php

RAS

A lot depends on your individual circumstances.

You need to be aware that if you go down the IVA or BK routes, you have to declare it any time a potential creditor asks you pretty much for ever.

Both sit on your credit record for 6 years and if a IVA fails, then your IP will make you BK. At present some 80 percent of IVAs fail but they are being sold by companies more interestd in the fees than their clients or the creditors. Only do it is one of the free debt charities suggest that it is the best option for you.

You need to talk to these people

http://www.moneysavingexpert.com/loans/debt-help-plan#help

In both instances, if there is any equity in the house, you will have to release it at some stage.

The other thing is that you may not be making best use of your income to pay off your debts.

If you put up and SOA, people here can help you

see here

http://forums.moneysavingexpert.com/showthread.html?t=107280

Please indicate if the interest has been frozen on any of the debts.

also go over to www.entitledto.com incase you should be getting more help and to www.whatsthecost.com and play witht the snowball.