25 with 12k debt please help!

Hkj97x

Hi all 

need some advice on my next steps as I’ve been considering an IVA and am not sure if this is my best option??

im a single mom, healthcare student on about 20k a year (but some of this will need to be paid back as a student loan in the future - more debt!) and I’m in 12k debt from silly things when I was young and stupid. I’m in debt with around 10 creditors, catalogues, credit cards, a loan etc. 
I am not able to pay anything other than the minimum, I am so bad at budgeting and because I get paid quarterly I struggle to manage money and end up owing three months worth of bills each time I get paid leaving me with hardly any money left to stretch over the next three months. 

I have been considering an IVA as I feel it’s my only option left - can somebody advise me abit more as to the benefits and implications of an IVA, do you think it’s best for my situation, and if so what is the best company to use for this? I’ve been looking at fortis but I really don’t know. My credit score is currently at 500 (clearscore), will it go down to a 0 with an IVA? I’m so scared with all this debt, I have a child to support and with my gas and electric rising to almost £200 a month already without it even being winter yet I just feel like I have no other option than to enter an IVA. 

Thanks in advance everyone 

Hkj97x

Also / worked out my total outgoing for debt and bills each month and it’s over £1,100 and that’s with minimum payments! I’m struggling so much 

Brie

Would be best to post a statement of accounts so we can see where the pinch points are and offer practical advice.  

Don't worry about your credit score it's meaningless as no one looks at it except you.  And if you are so much in debt no one will lend anyways until your tidy things up a bit.  

Brie

from the sticky

Statement of affairs, an essential first step : http://www.stoozing.com/soa.php

Grumpelstiltskin

Hold on Do not even think about an IVA unless you own your own house with equity.

IVAs are constantly missold to vulnerable people who are panicking.

 If you speak to anyone from an IVA company remember they are a salesperson looking for their bonus and they are not debt advisors.

rdchick

Have a chat to stepchange, I think they can give you the best info for what you need to do. 

I was in a similar position 10 years ago, I did it by myself in the end, got myself a CCJ in the middle of my nursing degree and only just climbing out of the hole I made. I still kick myself that I didn’t just talk to stepchange or one of the other amazing not for profit charities who do brilliant work getting people back on track. 

But I’m on my way to being debt free finally, owning my own house and now a Sister for a very busy hospital ward, you can do it, but make it easier on yourself by getting people in your corner ❤️

SusieT

First of all - stop and breathe.  For now do not pay the cards or loans, yes they will send you letters with scary titles that may even be in a red font, but you need ignore them for the first month at least, and work things out so that you in a position where you are under control. IF you have 1 card with spare capacity and you really need (not want) to use it to get to the next payday then pay £1 above the minimum on that card only, all the others do not use. 
Have a look to see if there is anything that you have purchased with them that you do not need and that you can sell to bring in some ££ to get you through 
Then wnen you are calm sit down and as accurately as possible do the SOA that is linked to above, including the interest percentages on the cards and loans. 
Then people on here will see how they can help you. When you are deep in the poo it is hard to see a way out, but from the looks of it an IVA is NOT what you should be looking at right now, the fees alone will probably be almost as much as your debt is. 

enthusiasticsaver

I would not consider an IVA with Fortis. If an IVA is right for you then speak to a free debt charity like step change. Whether or not you should do this depends on other things though and an soa is needed first. 

sourcrates

Forget IVA, and your credit score, even if you are a homeowner, you don`t want to go insolvent for 12k.

If you have a house, look into debt management, if you don`t look at a DRO, and/or debt management.

Unless you own a house without any equity, and you have 60k plus of debt, forget an IVA, its not for you.

fatbelly

It doesn't sound as if you will be having any spare money once the higher utility costs kick in. I'd say now is the time to stop paying your non-priority creditors and look at a DRO to tidy things up - providing you do not intend to be moving to a well-paid job in the next 12 months.

Then hopefully when you do complete your course you start with a fresh slate  (apart from the student loan).

You do need to budget though - so an soa would be useful

EssexHebridean

Also - I'll add, right now, don't worry about "the future" in terms of paying back the student loan - you are investing in future you and that's not usually considered to be a "bad" debt. (Other forms of "not bad" debt - a mortgage to buy property - so long as it is affordable, and a loan or finance to purchase a reasonably priced basic vehicle for necessary transport - for example to a place of work which is not accessible by public transport.) You'll need to get to a certain level of income before repaying the student finance even becomes a thing, and once you hit that point it will seem relatively insignificant - they design it this way for a reason!