I'm a newbie DFW

Just_Me_4

Hi there

I've been browsing this website upon recommendation from a friend and I've found lots of interesting guides.

We are pretty heavily in debt and are now at a point where we simply can't afford to live after paying all the monthly repayments. We're currently thinking about an IVA but having read the guide on here are not at all keen on taking that route. I am wondering if a secured loan might be the thing but I know my husband's biggest fear is losing our home.

My thoughts are that my husband and I are both high earners and are afraid this will work against us when trying to sort out our debts, will the creditors take the view that as we earn so much we should be able to pay everything off?

Also, is it a viable option for us to approach our creditors and ask to pay lower monthly amounts or would they laugh in our faces?

Any thoughts on secured loans and IVAs would be most welcome, I'm at my wits end and living with a man who is on the verge of a nervous breakdown.

Just Me

poppyg_2

Hi and welcome to the forum

Would it be possible for you to post up an SOA which lists your incomings and outgoings?

Consolidation loans generally not recommended and I for one can vouch from own personal experience that they're a bad idea

Maybe worth contacting one of the debt charities - CCCS or Payplan to see what they suggested. CCCS have a debt remedy thing you can fill in online, it's anonymous and gives recommendations that obviously you don't have to take forward but if you do they can help you set up payment plans with your creditors

Just_Me_4

I will have to work out my SOA to put on here. I will also try to get my husband to have a look on here, he is convinced we are the only people to ever be in debt and that we are beyond help.

poppyg_2

You're not beyond help I promise, I have a large amount of debt but finding this forum has been an absolute god send, I didn't join long ago but I feel so much more positive already about everything

Putting an SOA together definitely helps I think, it's good to know what money is being spent on and what (if anything) you have left. I'm still trying to decide whether to go on a Debt Management Plan with CCCS or to write to my creditor (Natwest) to try to get them to accept reduced payments/freeze interest. Other people on here seem to have had success with doing this. It seems that it's better to contact creditors in writing rather than over the phone from what I can gather

I'm sure people here will have lots of advice for you which can hopefully avoid you having to get anything secured on your house x

mizmir

Just_Me wrote: »

I will have to work out my SOA to put on here. I will also try to get my husband to have a look on here, he is convinced we are the only people to ever be in debt and that we are beyond help.

He definitely needs to come on here. This board is consistently one of the most popular on MSE! Debt happens to all kinds of people in all kinds of circumstances. And there is always a way out - it can be challenging and take time but all the information and support you will need you can get right here.

As high earners you are no less likely to get into debt (though I know the feeling of embarrassment - my OH and I also earn good salaries and I feel bad that we got into the position we are in - but what matters is doing something about it). It could work in your favour in that if you can cut your expenditure you have potentially more leeway for paying more off the debt - but you may also have high commitments (in terms of mortgages etc). You'll get help here whatever - there are people here who can find savings where you wouldn't believe.

Post your SOA when you can - that will be the start of taking control of it all.

mizmir

Another thought - also try keeping a spending diary. You can start that straight away -just write down everything you spend. It will have two benefits. It will show you where your money is going and it will make you think about whether you need to spend on something!

Good luck.

Bestthingsinlifearefree

Just_Me wrote: »

I will have to work out my SOA to put on here. I will also try to get my husband to have a look on here, he is convinced we are the only people to ever be in debt and that we are beyond help.

Hi JM,
Welcome to MSE:beer:

Take one step at a time.

First step is joining MSE / looking for a way forward.

Now, second step, post an SOA then all the bright and wonderful MSE'ers can try and give some constructive advice.

There is always a way forward and you need to explore your options. Posting the SOA will help give people the info they need so they can then try to advise you the next steps forward.

Keep posting

Bismarck

NO to the secured loan until you've at least been on here a few weeks and asked a few people - don't rush into something that could cost your thousands extra when the advice here won't cost anything but some of your time.

FOR MR "JUST ME" : GET ON HERE TOO. IT'S NOT TOO LATE AND I'D BE AMAZED IF NO-ONE HERE COULD GIVE YOU ANY HELP....

look forward to hearing more and joining in with some of the cleverest people I know, in giving some advice...;)

Just_Me_4

OK we have been on the CCCS website and they say they can do a debt management plan with us. What are your thoughts on this?

poppyg_2

JM, that sounds like a good idea, are you satisfied you've given them all accurate info and that you'll be left with enough to live on and have a bit of a life as well? It still might be worth you putting an SOA on here so people can offer some constructive advice as well

When does it say you might become debt free if you went onto the plan? Bet it's a lot quicker than if you were to get a secured loan

There's a thread on here for people on DMPs, perhaps you could have a look at that to get some further thoughts and see how other people have been getting on with their DMPs. I have heard through this site very good feedback about CCCS and I do think it seems like a good option for you

Just_Me_4

It says about 6 years. We both get annual payrises and bonuses which is why we have been put off the IVA route. Will these be affected by the DMP?

I will go and have a look at the DMP bit.

ps. If I'm honest now that I know how much we are in debt to I am feeling embarrassed about posting it.