85k debt

hypno06

We have had no luck in reducing aprs etc with credit cards, and often you find that if you ask to freeze interest etc they put you in the "risky customer" category which is something we have always been keen to avoid, so have not asked to do this.

Your situation, however, is unique to you. so if you feel that this is something you want to do, then there is no harm in at least asking your credit card companies if they will reduce your APRs. If you have managed to keep up to date with payments, then they may knock a few % points off and this will make a little bit of difference.,

The thing with this debt lark is that everyone is different - All I can do is to urge you to look at all your options - then at least which ever one you go for at the end of the day is done with the benefit of having looked at all the options properly and making an educated decision, rather than making a panicked decision that you do not sit comfortably with.

Of course, an IVA may yet be the best option for you - but have a look at the alternatives first. I have not gone on to a debt management plan at all, but have had a couple of phone conversations with CCCS and payplan, just to make sure my head is in the right place - they didn't judge me and they didn't try to get me to do anything with them - they were happy to talk to me as a real person, and that type of thing helps you make the right decision for you.

With a bit of focus and some extra effort, you can quite possibly get through this, credit record intact, and debt free in a reasonably short space of time - certainly not the marathon nightmare journey you are expecting.

Spend tomorrow brainstorming - and see if you can come up with a solution to try for the next few weeks. Then have another look, and re-assess if necessary. My money (had I actually got any) would say that you can do this with the snowball calculator and some enthusiastic effort.

I am off to bed now, but will be online for most of tomorrow, as will many others. Keep posting.

Shineyhappy

I dont know about credit cards, but quite often it is possible to switch your mortgage from repayment to interest only.

I would look into making as many savings as you can with your outgoings as soon as you can. For example are you getting the best deal for your gas/elec/insurance/internet? Are you paying for any services that you either dont use or cant afford but dont need? Ie can you cancel any gym contracts or magazine subscriptions or Sky? Can you make some savings on your food shopping?

What about ways of making extra money? Ebay can raise quite a bit of cash and declutters your home.

I know these seem like small amounts but small amounts really do add up!

hypno06

Oh, forgot to say, join a challenge or two - several of us are on the "pay off £20k in a year" challenge - doing this you would be debt free in 4 years.

also the "make an extra £10 a day" challenge might be something you and your OH can do between you, even when the baby arrives - an extra £300 odd a month would be most useful to chuck at a debt.

Finally, the grocery challenge - we challenge ourselves to only spend a certain amount on groceries during a month - helps to focus your mind.

Also....(so my "finally" above was a big fat fib) there is the olympic challenge, the sealed pot challenge, the moozies Sunday-Friday challenge, the list is endless!!

(personally, I am waiting for the "eat your weight in chocolate" challenge, but strangely it has not yet appeared on these boards)

Seaxwyn

Hi mcj - great to read that you're feeling more optimistic.

I did get Abbey to reduce my rate on my credit card - I rang up saying I was going to transfer the balance away as I'd been offered a better rate and they dropped it to 1.9% for 6 months. So it is worth trying. But I don't think 'loyalty' counts for all that much as the best deals seem to be reserved for new customers. If you can juggle balances around enough to clear one card, you may then get a good rate to transfer balances back onto.

Another thing to think about - what have you got that you can sell? I've made LOTS of money selling books on Amazon (OK, I had a lot to start with). Ebay is surprisingly easy to use. Think about whether you or your OH could make a bit of money to pay off your most pressing debt.

Good luck

stapeley

Good morning , I am just informing you of what some people have found out , it uo to you if you chose to do this ! If your credit cards and unsecured loans are pre 2006/5 .There is a chance that the CC Agreement is Unenforceable ! This has come about because ,some Agreements have not complied to the CC Act . example being , Some debtors, having requested a true signed copy of their aggreements have found perscribed terms missing . That is things like , the credit limit , amount of credit , even the creditors signiture missing . In many cases people have only signed APPLICATION FORMS for credit cards . In these cases the CC act state that the Agreements are unenforceable . You may like to check on the wording of the Act . The CAG website have very good legal people on there . There are links highlightening sections of the act covering these points Please private message me if you need any other help . good luck

itsnowtime

I too have a similar amount of debt to yours - please see my signature.

and.. like you I considered an IVA but I knew it wasn't what I wanted to do. So I contacted www.cccs.co.uk in order to gain some advise and they suggested I do a Debt Management Plan.

The only thing I can say is yes I know my credit history will be knocked for six but it was a huge weight off my shoulders and just wish I'd have started it earlier.

Good Luck for managing your debts and with the new arrival!

chevalier

Look forward to your statement of affairs

Just remember that babies don't have to be expensive - have a look on www.freecycle.org, for bundles of clothes as baby gets older, also high chairs etc. All of these are offered FREE and all you have to do is collect. And don't be too proud to accept friends offers of clothes etc.

When it comes to weaning, you can save an absolute fortune, by pureeing your own veg etc, and not buying jars of stuff.

best of luck
chev

Oldernotwiser

With that little equity in your property it might well be possible for you to go bankrupt and not lose your home. If you post a similar enquiry on the bankruptcy board you will get a different point of view that will enable you to explore all options fully. I'm sure that both viewpoints would agree that an IVA is rarely the best option. Definitely take advice from one of the debt charities and stay away from paid for services.

mcj

ok I was reading about the IVA last night and it says that they will value your home either in the first year or the last year. I am imagining if you have a lot of equity they will value first year and no equity fifth year?. It says that at the end of the 5 years you can have your home revalued and if there is equity you can be forced into remortgaging or forced to sell. My question is if over te 5 years I made a good profit in the house and there was room to remortgage and pay some more of the debt off before the IVA finishes would your lender or any other lender let you draw the equity out seeing as you have had an IVA for 5 years. my current lender is HSBC ??? Also if I go for the IVA my dad has said that he will help me clear my HSBC overdraft so there is nothing there and would not be knocking HSBC anything and they will have no need to close my bank account?.

Thanks again to everyone for there suggestions I promise I am looking at all the avenues and will be contacting cccs tomorrow

babs

Hi,

With an income level and debt level like yours, you must have built up a few assests that you don't really need. Are you a 2 car family? Could you sell one or possibly downsize the car, which will not only be cheaper to buy but also cheaper to run. You can't afford to be car snobby when you are in this situation.

Look around you house and get things sold on ebay that you no longer need.

Look at everything in depth - your mortgage, fuel providers, insurance policies and see where you can cut costs, Switch debt to cards that have a 0 per cent interest and keep reviewing them every month - switching when needed. Have you got Sky? consider drooping to a smaller package or getting rid for the time being.

It takes a bit of work and a bit of effort, but its well worth it. Good luck!