I'll start here first..........

needadviceasap

I've always had a higher amount of debt than my peers, however, I recently got very much in control and was proud to do so, even consolidating some of my personal debt to a shorter period so that I could pay it off more quickly.

However,........I run my own business and last year, we incurred two high value bad debts which affected cashflow. Believing that this was a 'blip' and that we'd get the money back, I threw £35,000 of credit card 'cash' at the business, expecting to get it back again very quickly and with the company paying the repayments in the meantime. We took back one of those debts but the other remains outstanding and with a very poor economy, the business is still very much suffering. I'm now on a verge whereby the company will either be bought (someone is interested) or it will go under and I will know one way or another in the next couple of weeks. Either way, it looks unlikely that I will be able to repay the monthly payments for the credit card 'directors loans' to myself for some time (and didn't last month either) and I can't afford to pay these from my regular income.

I spoke to a debt management company today but having read through some of the info on here about IVAs (which was the company's recommendation) I'm now worried that this might not be the best way forwards.

My immediate problem is how to get through the next couple of months without missing any payments on anything (which I've never done on any of my debt to date) before I will know what the longer term situation is and will then have to assess everything else again at this point. My credit cards were on special deals originally, but are no longer, however, I can't move them anywhere as they're all full.

I thought I would start by asking advice from what seems like a highly knowledgeable and wise group of people here!!

So.........here're my 'details':

Outgoings (general excl credit)
Mortgage: £800pm
Life insurances: £45.97pm and £26.16pm
Buildings and contents: Paid last month for year (£180pa)
Gas: £22pm
Electric: £31pm
Council Tax: £125pm (over 10 months)
Water: £25pm (on water meter)
TV/Broadband/Phone: £90pm
Mobile: £25pm
Bank Account Chge: £15pm
Petrol: approx £80pm
Food/Household: approx £150pm

Credit cards:
Lloyds: £15k o/s, minimum payment £293pm
Egg: £9,500 o/s, minimum payment £184pm
Egg Money: £2,500 o/s, minimum payment £48.58pm
RBS: £4,500 o/s, minimum payment £95pm
MBNA: £12,000 o/s, minimum payment £104pm
Nationwide: £100 o/s, minimum payment approx £6pm

Loan:
Goldfish: approx £10,000 o/s, £492.11 pm

Overdraft facility: £1000 (which is being used to the max)

Income: this month, it will be £1,616 net and my partner is able to pay me £500 pm towards everything so a total of £2116pm.

TOTAL DEBT: approx £55k

Good to get that out in writing...not sure where I start in tackling it tho!! And I guess I'll need to tackle / make decisions quickly so I don't end up over my overdraft and get charged which will add to the problem! Should I really consider that IVA? There seem to be people in worse situations than mine here who have been able to get in control without this.

GeorgeUK

I think you need either expert financial advice or to call one of the free debt charities. Your income covers you monthly outgoings, but not the CC and loan payments. Either that of contact CCCS or possibly CAB - they may be able to advise on what to do. Especially difficult as you do not know where your business is going in the immediate future.

I don't think even a 0% virgin moneycard would be of use. 1st month is 3% payment required, but then min payment is only £25. I doubt you can get a credit limit that would be beneficial.

Have you enquired about a mortgage holiday? Would that be a possibility for the short term until you know what's happeneing?

Bismarck

I'm with GeorgeUK on this one.

This is quote complex as you're mixing business and personal affairs together and while I understand why you're doing this, there is some very thin ice around!

One thing that puzzles me: if the business may go under in the next 2 weeks, why would someone buy it or is it a notional value?

I hope this works out for you but recommend you get specialist advice from your accountant.

good luck