Debt advice required - 60K

Tomanydebts25

Hi

I'm in need of some advice please. I currently owe around 60k worth of unsecured debts. Both loans and credit cards. All racked up through gambling, which I am now seeking help for.

Amazingly I have kept up to date with all payments until now. I can no longer keep up with working 12 hour shifts 6 days a week.

I have looked into several debt solutions and also contacted step change. A DMP would take too long to clear around 10 years. An IVA was reccomended to me (joint home owner) just under 2 years now. However I have read nothing but bad reviews on IVAs. Does anyone have any positive first hand experience?

Or what would my other options be?

Many thanks

rockabillygirl

Just wanted to say well done on facing your gambling issues. Someone will be along far better qualified than me with some advice.
Good luck on your journey.

sourcrates

IVA worked very well for me, nothing to be scared of, as long as you budget correctly you will be fine, on that amount of debt, a DMP will take far too long.

Gazzafatcityboy

Hi there,


As a reformed gambler myself, can I ask what help you are seeking and also what form of gambling you had an issue with?


Regards,


Gaz

National_Debtline

Hi there,


I understand that there can feel like there is a rush to try and get a new plan set up as quickly as possible in these situations but I would suggest that you slow down. How long have you been seeking help for your gambling? What will be your new take home pay based on your new reduce your hours ? Realistically you need to feel 100% confident that you gambling is under control and that you can actually live within your lower payslip for a little while before going into something like an IVA.


IVA's can be good because they give people a clear deadline for being debt free, they also stop creditors calls, letters and interest but they are known for being very inflexible. Your payments will be reviewed every 12months and your monthly instalments may increase if you have done overtime/ had a bonus, but they won't reduce if the unforeseeable happens. This is where there is a big risk to homeowners - if you cannot maintain the payments on an IVA there is a risk of being made bankrupt. If you were made bankrupt you may lose your home. This doesn't mean an IVA can't work for some people, but it is big commitment when your situation isn't quite settled yet.


Full, free advice is normally the best place to start here. Perhaps starting with a DMP or self negotiation until things settle down and then re-evaluate if you would still want to do an IVA. Sometimes, the flexibility and lower risk options are more appealing - even if they do take a bit longer.


Laura
@natdebtline

Puzzcat

Hi,
I am in a dmp started with stepchange in November 2013 with 60k of unsecured debts. I am now self managed and the debts are just below 43k. I am also a homeowner, the length of the dmp originally 9 years wasn't of a concern to me, I am in it for the long haul.
Good luck whichever route you choose.
Puzz

Tomanydebts25

Thankyou all for your responses.

The reason I'd leaned away from the DMP option was because realistically I'd be looking at 10 years at £500 a month and a few creditors were already being awkward about reduced payments & freezing interest.

@Gaz - I started off attending a couple of GA meetings in the evenings but I'll be honest I found them not very helpful at all. I then went to my local GP for some advice as I admitted I was starting to feel really depressed and was really struggling day to day. I was referred to a psychiatrist who has helped massively. But I'll be honest, a lot of it stopping gambling is about the Individual. I got myself into the mess, and now I'm determined to resolve it. No one can make you stop but yourself.

My main gambling consisted of horse racing and blackjack.

@NationalDebtline - I have been seeking help for gambling for about 4 weeks now, with the last 2 weeks entirely gambling free. Doesn't sound long, but for someone like me that has gambled nearly every day for 6 years. It's a good start. I'm in no way saying I'm reformered character but I'm on the right track atleast.

My take home pay, bare minimum without overtime will be £700 a fortnight.

I've looked into IVAs a lot and I feel that is my best option going forward. The fact it's structured with a clear deadline, 1 monthly payment with no hassle from creditors is what I feel could work best. However I am still deciding.

Thanks

jenny+luke

Hi,

just wanted to say well done for 2 weeks without gambling. addictions are hard and you are doing well.

I've counselled several clients with gambling addictions, one to one counselling might be something to think about.

Best of luck

essexinthenorth

Well done for starting on the road to sorting yourself and your life out. I'm two years into a DMP and in many ways the hardest part was starting off - deciding whether to go down the IVA or DMP route; the scrutiny of your monthly budget and simply facing up to the situation. All very tough but once it is up and running, it's amazing. I am with Payplan and they have been superb since day one. I have never felt judged by them in any way and they offer reviews and advice whenever I need.

My debt was not as high as yours so the IVA was never a route I considered but I have heard positive things about that too.

Whatever route you choose, good luck and don't look back. The only way is forward from here. :T

Gazzafatcityboy

Hi there,

Okay that’s good to know what types of gambling that you have issues with.

GA is good for some people but for others it does seem like a waste of time.

First thing is first if you don’t know already or have done it.

• Self-exclude yourself from all casino’s its hard to do this I feel but it’s a start. You can go into the casio and request them to do that.
• Self exclude yourself from all bookies which I believe that you can do now by going to game care.

In terms of feeling that there is something missing, try something new a new hobby or something else to occupy your mind.

I actually go fishing which is sort of gambling, you wait to catch a fish which actually is cool when you get one.

Take it one day at a time, trying to go cold turkey is hard to do most times. It will get better okay.

Good luck with it and I have my fingers crossed for you.

I have just paid off the majority of the debts I have. Its around 12k and now just 7k left so nearly there.

Gaz

DorisTrousers

I would just point out that if you do plump for the IVA route, payments can be reduced if necessary. The I.P. has discretion to do so by up to 15% without recourse to creditors, although anything over that would have to be ratified via another meeting of creditors.

That said, I would also advocate a second or 3rd opinion as well. IVA's are still pretty much tied up inasmuch as they use one set of expenditure guidelines to calculate affordability, but there are different levels of expenditure that can be used within those guidelines. It follows therefore that one organisation may, by using discretion in some areas of expenditure, be prepared to propose a payment level significantly less than another. Why pay £500 and not have "wriggle room" when someone else may be prepared to take the case on at £400?

Cost is a factor in IVA's as well, but any organisation that provides this debt solution is a commercial one, so it is less of a factor than cost differentials between a debt charity and a commercial DMP provider. You need to remember that 5, and probably 6, years is a long time so it makes sense to me to see if it can be done for you with a lesser monthly contribution.