85k debt

mcj

Hi everyone in big debt just about to do IVA really really dont want to but cant see any oter way I earn 42 k a year my wife earns 16 k a year she is just starting maternity leave so will be on 400 a month till october debts as follow

40k in credit cards
40k in loans all unsecured
5k overdraft

sruggled for the last 2 years bouncing balance transfers back and forth. run out cant do it anymore still got really good credit rating have not missed any payment tried to get a big loan to cover dTi to high i think I have reached the end got house 232k mortgage 1153 a month worth 245k , will not consider losing house moving or selling. I will work 3 jobs if i have to but wont be much of a life . Baby due in 3 weeks cannot mess that up.

Its a massive dent in my pride and well being and to even consider IVA never knocked anyone in my life. debt is a result of divorce 4 years ago my new wife is south african thousands spent on visas and debt from first marriage. my ex and i used to earn 80k a year between us so was pretty comfortable.

I imagine this is not enough info but anyone who has got any ideas to help please let me know what other info you need. I was reading the pdf about IVA's and I think it is so frightening to do it and I am concerned about the implications in years to come. As Martin says in that he has never seen a debt that cant be sorted well lets hope I am not the first, Thanks for reading and any help would be much appreciated.

Thanks

Michael

stapeley

Hi, have a look at the thread about CCA requests . It may help .

evab_2

Can I suggest you start out and do an SOA which will give everyone a clearer picture of your situation and then will be able to help you better.

Ev x

pinkpr1nc3ss

:hello:Hello, Just wanted to say Hi really as I'm new here too. I've been reading for a while so I know you'll get lots of helpful advice here.

mcj

right you guys ready for this

20k loan natwest 307 per month 3 years in a 7 year loan about 16 left
20k northern rock 245 per month left over from previous house unsecured
9k mint c/c 200 ish per month
9.k k n/w gold c/c 220 per month
5k citi plat 150 per month
8k b/c 180 per month
2k n/w plat 70 per month
1.8 cap one 70 per month
5k car loan 130 per month
300 per month child maintenance
plus 5k overdraft 2 n/w
I have a secons bank acc with hsbc with a 6k facility about 2k overdrawn on that

plus normal living we were up to now earning about 3.6 k per month gonna drop to about 3k got about 5.7 k left available on credit cards that until i know what to do will keep paying minimums on c/c's and doing balance transfers

thanks

stapeley

Hi , the way things look , I don,t think it will be long before you start to miss payments . Defaults will then be made against you. Before this happens ,you have alot of choices to make . You must never turn unsecured loans into secured debt, that will risk you home . Always pay Mortgage , electric ,gas council tax etc first, CC last .
Could you survive with reduced payment or payment break ?
Some people have found with their Credit cards ,and when the debt has been passed to DCA, a request for a copy of the signed AGGREMENT has revealed the possability that the Agreements are unenforceable . You may want to look into this further.good luck

Shineyhappy

Hi I think you will need to supply a few more details.

Can you draw up what we all refer to as a statment of affairs? You will need to find out the interest rates of the above debts and also all your other outgoings.

I hope you are talking to a debt charity who do not charge for their services like Payplan or CCCS as there are plenty of companies who charge you a lot for their services and the last thing you need is to be funding those type of business.

moneydesperate_x

Hello and Welcome

Like others above have said I would highly recommend talking to someone from CCCS, they are very helpful. It may be that you could do a Debt Managment Plan instead?

I am sure people will be along soon to help, this should bump you back up.

hypno06

Hi, 2 years ago I had 100k of debt on top of a hefty mortgage, and our combined salary was only 45k, so I know how tough things get. We no longer earn that much and our debt is still over £60k, and we have no intention of going into an IVA etc.

My top tips would be:

1. Put up a complete statement of affairs. There is a sticky at the top of this board for first time posters, and in there is a link to a template I think for a statement of affairs - then we can see what we are working with.
2. Put all your debts and APRs into the snowball calculator at www.whatsthecost.com and play around with the figures to see if you can work this on your current payments without going into any sort of default option. This is what we have chosen to do, and it is amazing what a motivator it is - our current debt free date is less than 4 years away, not bad considering the size of our debt. This way, you also maintain your credit rating, which may or may not be important to you.
3. Keep a spending diary of absolutely everything you spend your money on - even the little things like the odd newspaper, or coffee on the way in to work. Again, it helps to focus your mind and you can soon see what you can cut out without "missing out" on things.
4. If you really cannot cut back any more and cannot fund your payments, then give CCCS or Payplan a call. Alternatively go online to the CCCS website and put in the details on their Debt Remedy thing. This would involve defaulting on your agreements which will have a knock on effect on your credit rating for the next six years. This may not be a worry for you, but if you want to move house, for example, you will perhaps want to keep your credit file as clean as possible to give you good deals in the future.

Whatever happens, do not go into an IVA without exploring the other options first - an IVA is a very big step to take and if it goes wrong you could very easily end up bankrupt. Also, you may in the long run end up paying more than you think if after 4 years you have equity in your house etc. I think that is the way it works, and there are tales on here of people who have started off thinking they will write off 75% of their debt, but in reality at the end of the term they have ended up paying almost 100% of their debt but still having a trashed credit record as a result.

Finally, keep posting - the support on here is amazing!

Seaxwyn

Hi mcj, welcome and congratulations for posting - that is the first step in sorting this problem and the only way is up.

Definitely post a full SOA and the people on here will come up with lots of ways to trim your outgoings. And dothe snowball thing on https://www.whatsthecost.com. this is a great eye-opener.

A couple of thoughts - Alliance & Leicester offer a current account with interest-free overdraft for one year. Could you move your n/w overdraft to A&L - giving you one debt that is not accruing interest for the time being.

Also - you quote round figures for your debt repayments. If that's what you're paying it's probably not the most efficient way. If you pay ONLY the minimum payment on all but your highest interest debt, then pay every extra penny you can scrape together off the highest interest one, the total will come down faster. For any new spending, use the lowest-interest method available.

Above all, keep posting here to get lots of great advice and moral support.

mcj

do you know what i was that close probably next week going to do an IVA I have got all the forms through etc and this was my last step. HYpno06 has particually inspired me. I am very lucky and work for a booming industry building contract management and I have good options for overtime etc. I am going to away to get some exact figures together and use the various websites you have recommended . May take me a coupe of days but I will be back I new that IVA was a real last resort and although maybe it might have to be a last option i feel that I need to look into other options further. Has anybody found contacting the credit card and explaining any use or do they not want to help. I.E cant they give you six months interest free to aid you baring in mind I have spent loads with them and I have had some of these cards for 10 years??