My Options - Advice Please

Matthew_P

Hi,

I have 8 short-term loans - does not include multiple loans with the same company and 5 credit cards. All together it comes to around between £6500 to £7500.

I run an online business and my profits each month are a fluctuation but still make around £1300-£1600 normally. This is about enough to cover my repayments and a little bit to spend on other things.

It is getting to the point now where my money is not in proper sync with my repayments. All month I am worrying about repayments and has taken over a large part of my life.

I have never gambled but have a recovering food addiction. I know it sounds unheard of but I was spending hundreds a month on food and takeaways and when my online business was slow I would and still have recently taken out short-term loans and credit cards to plug it when looking back I didn't need to. I have taken action to stop letting my addiction cause more damage but the damage has already been done.

I don't want an IVA and my name on a public register but it might get to that point if I start not being able to meet my repayments anymore from too much debt. I need some advice on what to do and whether creditors will panic if I ever needed to change a repayment date with them; whether IVA's would stop anyone at my address getting credit; whether it will affect future employment and throttle my life basically.

If I could get some help on what to do when I can't meet a repayment, IVA's and how they affect you and stuff like that I would be most grateful. Thank you x

sourcrates

Hi,

You don’t want an IVA, your debt is no where near high enough for one of those, they are designed for homeowners who cannot go bankrupt but who have a lot of debt, there is no lower or upper limit, but an average IVA applicant will have £30/40,000 of debt upwards.

A debt management plan would most likely be your solution, have a look on the stepchange website and take there “debt remedy tool” for a spin, it will either recommend a DMP or a DRO (debt relief order) dependant on your circumstances.

Kitten868

I think an IVA would be jumping the gun. In your position I would contact step change and try and arrange a DMP. It does cut off new credit available to you and does mean you'll default on your loans but I think that's happening/happened already. Your repayments will be affordable so you won't need more credit. You can read other people's experiences on DMPs on here. There's a thread where people share tips.
You should also consider making a complaint about the loans as they have trapped you in a cycle. There is a great thread about that on here.
Are you coping better with the food addiction now? Are you seeking help? You can get through this x

Matthew_P

Kitten868 wrote: »

I think an IVA would be jumping the gun. In your position I would contact step change and try and arrange a DMP. It does cut off new credit available to you and does mean you'll default on your loans but I think that's happening/happened already. Your repayments will be affordable so you won't need more credit. You can read other people's experiences on DMPs on here. There's a thread where people share tips.
You should also consider making a complaint about the loans as they have trapped you in a cycle. There is a great thread about that on here.
Are you coping better with the food addiction now? Are you seeking help? You can get through this x

Thanks for your reply. I have stopped buying takeaways now with the support of the people I live with but do have the occasional slip-up when on my own. It is a lot better than it was so I'll put it that way.

You would be surprised to know I have not one single default across any of my debts or even a missed or late payment. Not a single one since I turned 18 and started using credit. I am only 19 by the way - shocking situation for that age and such a small time frame I know.

It is the fact that things are getting to the point of no return like ever before. I have multiple loans due on 31st and are worrying on whether I can pay them on time or not because my incomings are paid on an uncontrollable date which could end up later than 31st.

I don't need specialist support for the food side. Counselling will not work on me because anything a councilor would say to me I have already told myself. I put on 5 stone in 2 years from it. If anything it is the debt that is now stopping me from making lifestyle changes because of the constant thoughts over it.

I want to get out of this by simply paying the debts and letting them run down to nill but its the loans that are the worst because at-least with a credit card I have flexibility whereas loans want X amount on X date or you default. No alternative to that.

sourcrates

Ha,

That was my story also, 30 years with an excellent credit record, then due to circumstances beyond my control, I have been insolvent twice in the last decade.

Don’t let debt control you, you must control it, if you have to default and make arrangements to pay, then do so, don’t struggle on regardless.

Your credit file will cleanse itself after 6 years, best to ask for help early than leave it too late.

Kitten868

There is an alternative: DMP. You will be repaying at a rate you can afford and you will be in control of your finances. It would be much better for your credit file than an IVA.

Kitten868

Sorry I keep crossposting with you sourcrates. You're giving sage advice as always. Thank you.

sourcrates

Kitten868 wrote: »

Sorry I keep crossposting with you sourcrates. You're giving sage advice as always. Thank you.

Great minds think alike lol

Matthew_P

sourcrates wrote: »

Ha,

That was my story also, 30 years with an excellent credit record, then due to circumstances beyond my control, I have been insolvent twice in the last decade.

Don’t let debt control you, you must control it, if you have to default and make arrangements to pay, then do so, don’t struggle on regardless.

Your credit file will cleanse itself after 6 years, best to ask for help early than leave it too late.

Kitten868 wrote: »

There is an alternative: DMP. You will be repaying at a rate you can afford and you will be in control of your finances. It would be much better for your credit file than an IVA.

I don't like the look of these possibilities:

Some of your creditors may still contact you
Most creditors will agree to reduce or stop interest and charges, but they don’t have to
If creditors continue adding interest and charges, this could increase the total amount you currently owe
Your creditors don’t have to agree to your reduced payments, but we’ll still send your payments anyway
Your creditors may still take further court action against you, such as a County Court judgment (CCJ)

I don't want to put myself in a position of wrecking my credit file from an arrangement and then it turning sour anyway. I do see the benefits but I seem to be swinging by at the moment, badly obviously, but still swinging by nevertheless. But I am starting to hang by a thread and need to think carefully about my next move or things could backfire on me.

sourcrates

TGC your second account is it Mathew ?

T-G-C

sourcrates wrote: »

TGC your second account is it Mathew ?

Yes. I want to keep one separate for giving advice from my own experience and the other for getting advice. This is allowed right?