Advice please

[lindsey.c]

I have previously *months ago* posted here, and stupidly I wasnt in the position to take anything seriously about my money problems. I am really hoping I have manaaged to change, because sadly, even though I would love to say that hoping that things would get better - they havent *and that has been a BIG reality check for me*.

I guess the best thing to do is just list who I owe and to whom....

HSBC consolidation loan £22,104 (6 years left to go).
Lloyds tsb consolidation loan £11,181.50 (4 years left to go)
Halifax credit card £5,700 (approx)
New Look Store card £80

My Income is now all used every month just by paying the minimum on the two credit cards, the £306 each on the loans (and my lovely monthly travel card to work).

I have cut back on everything that I can possibly think of, and its just got to the point where I cant see how this is ever going to get any better (esp when I am still using the credit card to pay for food and rent).

I have looked into a IVA, but the company that I have contacted, and are at this time writing a proposal for me, seem to think that the IVA is the best thing for me too. Is there any such thing as too high a payment? At the moment they have suggested that it should be £485 (my only problem with this is is that I have cut back on everything you could possibly imagine, so when asked to budget for things I have NO idea what I should be spending becasue I havent been spending) and the "rent" that i pay is a agreement with a family memmber for £60 (which I am now worried is such a small amount to pay each month for 5 years), and having not had to budget for the real world for so long, I am really worried that the £450 I have been allocated to live on, is just going to end up with me going bankrupt at a later date.

Reading all your experiences, it seems that IVA's are really life changing, but all I seem to do at the moment is worry that this could be yet another big mistake that I make and make my situation worse.

If anyone has any advice at all, I would be so grateful. I really do seem to have come to the end of my teather and ran out of solutions.

[MelanieGiles]

You should not enter into an IVA that you do not feel that you can afford, but will have to accept that creditors these days will allow you little slack in your expenditure budgets. I am seeing more and more people opt out of entering into an IVA as they would be required to pay a lot lower if they declared themselves bankrupt. And for someone who has no assets which would be at risk under bankruptcy proceedings, this can often seem a more comfortable solution.

If the IP you are using is saying that you need to pay payments you cannot afford, take a second or third opinion. It is unlikely to be too different to be frank, but at least this may help you to make your mind up.

As an alternative you could enter into an Debt Management Programme, but this would take considerably longer for you to repay, with no confirmation that interest would be stopped or legal action against you put on hold.

[Lisa2009]

You dont have to agree to the proposal if you think the monthly payments are too high. Five years is a long time.
Write yourself a list of all your expenditure, including ALL essential living costs.
This has to be your expenditure no theirs.
They can then advise you on any queries if you think and of the expenses are set too low.
Ips usually work on certain guidelines as to how much is "reasonable"
Dont be pushed into anything that will possibly cause you more problems over the 5 years.
Also it is usually best to speak to several different companies before you decide which one you feel more comfortable with.

[lindsey.c]

Thank you for the advice Melanie. I have an appointment with another company tomorrow. But its just knowing whats for the best at the moment. I;m hoping that things feel "right" soon somewhere.