Debt decision

Pricillaquan · 19 April 2018 at 9:23PM

Hello I'm looking for some advice regarding my debt. I owe around 14k. This was 27k but my family paid some if it off. They are willing to help me with the remaining but the money they have used is money that they had put aside for a house deposit. Now my dilemma is do i go through an IVA and keep the money at the end or do i just pay it all off and keep a clear record but no savings?
I am unable to keep paying my debt as I am a full time mother. I'm unsure how much an IVA would affect my life and future. Any advice or help appreciated.

Many thanks

sourcrates · 19 April 2018 at 10:15PM

Hi,

Let me get this right, your family has given you 14k to pay your debts with, but you are concidering keeping the money and opting for insolvency instead.

Is that correct ?

Do they not want the money back ? You cannot have the money in your account to pay your debts, then obtain an IVA, it does not work like that at all, firstly an IVA would not be approved if you had that kind of money, second, even if it was approved, the 14k would have to be paid to the IVA for the benefit of your creditors.

If you have the money, use it to clear what you owe, forget the IVA.

National_Debtline · 20 April 2018 at 9:52AM

Hi Pricillaquan

It's understandable that you want to know what effects your different options would have on your life and future - but can you be more specific about this, and what you are hoping to achieve? The main impact of your debts - and how you deal with them - will be on your credit file - this holds the past 6 years of your credit history, and affects how easily you can obtain things like mortgages, credit cards etc.

If your priority is to clear these debts in full as soon as possible, and your family is willing to help, then paying the £14K off now is what you need to do.

The other option is to deal with the debts yourself, without any financial assistance from others like family. Ideally you need to get some proper, detailed debt advice from one of the free charity services that takes your circumstances into account.

Best wishes

Dennis
@natdebtline

Pricillaquan · 23 April 2018 at 8:27PM

Hi many thanks for your replies. Sorry if I wasn't very clear. So my mother has money saved for me for a house deposit, when and if the time comes. I'm currently a stay at home mum with no income.
I had a debt of around 27k. My mum paid off 13k as my 0% were going to run out and I could get any more credit to transfer.
So I'm left with 14k. I cannot afford the repayments so I can either do an IVA/dro/dmp and at the end of the 6 years still have the money that my mum had saved for me or pay off the debt, keep my good credit but have no deposit for future. I am unsure how much the insolvency affects your life and if it's worth going through to keep my money at the end. I hold no savings personally.

Thanks

Pricillaquan · 23 April 2018 at 8:29PM

Many thanks , hopefully I have explained better below and no they do not want any money back. It was money for my future !!!9785;!!!65039;

sourcrates · 23 April 2018 at 8:37PM

Pricillaquan wrote: »

Many thanks , hopefully I have explained better below and no they do not want any money back. It was money for my future !!!9785;!!!65039;

Well what option you choose depends on your circumstances.

Without seeing a statement of affairs I cannot really comment further.

If you want to post one, that will help us greatly.

Link here :

http://www.stoozing.com/calculator/soa.php

Insolvency only affects you for 6 years, the same as any other debt solution.

Debt decision

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free