I’m in a lot of debt and I don’t know what to do

adam123456789

I’ve managed to get myself into a lot of debt over the years and I’ve lied to my partner about it all and it’s all come to fruition. I’m absolutely petrified and I don’t know what to do. I’ve been speaking with a few companies in regards to an IVA but again, I’m scared to go ahead with it. 

Has anyone got any advice on what I can do? 

elsien

1. Don’t panic.
2. Don’t even think of signing up to any company, who charge any sort of fees at all.
3. give more details about your situation, preferably using the link to the statement of affairs on here then people will be able to give advice that’s better tailored to your situation.
4. Don’t panic. 

enthusiasticsaver

Avoid an IVA especially if they charge you fees.  I would contact stepchange as a first option or post up  an soa (statement of affairs) here.  There is a link in my signature. 

You do not need to panic if the debt is unsecured. 

tacpot12

Might it help to tell a friend about your debt before telling your partner? They might be able to help you work out how to tell your partner, but also help you understand why you had to lie to them, rather than being able to lean on them for support? I would work on this while also talking to StepChange.

It might help to visualise the relief you will feel when your partner knows, even if you also have to accept that they may be very angry for a while. I suspect that they will be angry, in part, because you didn't trust them, and they will want to know why this was. If you can explain it, even if it makes no sense but the explanation is the truth, then it will help them understand and cope, and hopefully forgive.  

adam123456789

I’m currently in contact with step change and they were the ones I was setting up an IVA with but I’ve put it on hold. My biggest issue is, is what will happen for the next 5 years. I know I need to sort it but I’m struggling to come to terms with it.
None of the debt is secured.

adam123456789

A major factor has been the increase in everything. My child care costs have massively increased and my rent has increased by £280 in the last 12 months. It’s ruined me

elsien

If none of the debt is secured, what is the reason that they are suggesting an IVA? 

adam123456789

elsien said:

If none of the debt is secured, what is the reason that they are suggesting an IVA? 

They never really suggested anything, they asked what I would prefer and I said Iva because there is a definite end date. 

I don’t really know of anything else, a DMP is not something I want to consider either and bankruptcy is something I can’t consider either 

elsien

Why do you not want to consider a DMP or bankruptcy? There isn’t a right or wrong answer, just that it would be helpful to know your reasoning.
I presume you’ve already been through your budget with stepchange?

fatbelly

You really need to post a soa so we can see what you're dealing with.

It doesn't really make sense to rule out bankruptcy (or anything at this stage) and then say you want an iva, which is bankruptcy for those with an asset to protect.

stu12345_2

please post a sao.your earnings.partners earnings if he lives with you.your outgoings and your debts .
 you say you rent hence it seems you have no property. which suits bankruptcy better unless you have a job where bankruptcy isn't allowed.

an IVA suits those with a house to protect. and a dmp suits those that can clear their debts in under 10 years.i don't think stepchange ask folk what they " like" best.as I've used them and they come up with best solution.not what the customer would " like" best.

also Iva's can fail.you don't know if your income will drop during 5 years.or your sacked .laid off etc. 
you really needs to post a Sao with your income outgoings and debts please.

I had the Scottish version of an iva 16 years ago i had to stay in a job I hated and made sure I made no mistakes in it.i should have really had a dmp instead after I looked at the fees I had to pay for the iva.plus I almost lost my car in the Iva due to the value of it