28 and at breaking point

Cameron1994x

Hi all,

Im 28 and currently at breaking point with my debts. Today I gave a call to a company who were originally looking to consolidate my debts but after an hour they recommended an IVA. 

To sum things up, I earn 32k a year and have 21k debt with payment plans in place that are soon to default. 

The gentleman at the company seemed really genuine and we are now at the point where I am sending my statements for the IVA etc 

I wanted to ask on here first though. Should I do this? I’m single with no immediate plans of a mortgage within the next 5 years but anything could change. 

I pay £250 per month rent to my parents and my outgoings are quite a lot as I have about 10 credit cards with the amount being around £800 per month (whilst on payment plans)

Im worries about going ahead with the IVA and am looking for advice. 

Grumpelstiltskin

No No No

An IVA is NOT suitable for you. You have no property to protect.

Remember the man you spoke to is only a salesman not a debt advisor.

Contact one of the debt charities, Stepchange, National Debt Line or CAB and make sure you have the correct website not one of the copycat ones.

ADD   Read this from the Debt Free Wannabee board.

Debt-Free Wannabe Sticky - Provit & Statute Barred Letters, Defaults, Help and Guidance, All Here... — MoneySavingExpert Forum

MalMonroe

Hi and welcome to the forum. So sorry that you are going through this but you have come to the right place. You're not alone because many (many) of us on this forum have had very similar experiences.

Have you tried phoning one of the free debt help agencies?  Is it one of those you have recently been in contact with?

The three I mean are - StepChange, National Debtline and Citizens Advice. All offer free, friendly, non-judgemental advice. Don't pay anyone for financial advice because it's available free of charge.

I always (and I know fellow forumites must be sick of hearing it, sorry to them) recommend StepChange because they helped me so much when I was in financial dire straits and, like you are now, at breaking point. They helped me to get a DRO in 2013 and I've never looked back. That may not be the right solution for you but they will be able to talk through options to suit your own situation with you.

I know how it is though, when your head is full of worries, figures and the feeling that you'll never be solvent again. You can't think straight but talking everything through calmly with a stranger who knows what they're talking about can really help. I know that from personal experience.

You can always call, free, for some no-obligation, sensible advice.   Info in this link - https://www.stepchange.org/

I'm not being ageist when I say that you are still young and you obviously have a good job with a very reasonable salary so please don't despair. I'm sure that one of the agencies mentioned above will be able to offer some good advice. Even if you decide not to take it, that's entirely up to you but they may be able to offer solutions you haven't considered. 

Good luck, you've taken that difficult first step in coming here to ask for help - and you can do this!     

Clive_Woody

Another vote for talking with debt charities. They will talk you through your options and offer free advice. You are certainly not the first to find yourself in debt, and won't be the last. There is light at the end of the tunnel. 

sourcrates

Cameron1994x said:

Hi all,

Im 28 and currently at breaking point with my debts. Today I gave a call to a company who were originally looking to consolidate my debts but after an hour they recommended an IVA. 


The gentleman at the company seemed really genuine and we are now at the point where I am sending my statements for the IVA etc 

I wanted to ask on here first though. Should I do this? I’m single with no immediate plans of a mortgage within the next 5 years but anything could change. 


Im worries about going ahead with the IVA and am looking for advice. 

"The gentleman at the company seemed really genuine"

That`s probably because they are most likely an IVA lead generator, these are private companies whose modus operandi is to sell you an IVA, or perhaps a debt management plan, that comes with a monthly fee, regardless of how suitable that solution may be for you.

None of these companies are debt advisors, they are salespeople, they sell debt solutions - they have no interest in anything else.

Debt advice should only be sought from reputable organisations that have nothing to sell you, and that take no fee`s for what is available to be had for free.

IVA`s are predominantly for homeowners with massive debts that cannot go bankrupt, not many other circumstances fit into their suitability category, and certainly not yours.

At a guess I would say a debt management plan would maybe benefit you, through one of the free to use debt charities, and at no cost whatsoever to yourself.

Cameron1994x

Thanks all, will give citizens advice a call. Been on a self managed payment plan with lots of creditors so maybe I will see if they recommend anything else! 

RAS

Speak to one or more of the debt charities in sourcrates signature. And make sure to use the links as there are a number of similar fakenames out there.

Have your creditors defaulted you? Or are you on arrangement to pay?

mrcactus

I too had lots of creditors, about 19 if I recall correctly. Don't just go for the IVA because it seems an easy option...it's what I did for only 13k of debt - and was a big mistake!

I also live with my parents (now 31 years old) had no assets etc but I panicked and called up an IVA company, who of course told me an IVA was best for me and like Sourcrates and Grumpelstiltskin said, the people you speak to are sales/lead generators.

One thing I found with my IVA company is that when the IVA officially started, I could hardly speak to anyone from the firm when I had questions etc.