Am in trouble and don't know what to do

[john2007]

Hi All,

I've found this forum today and am thankful that I can now at least start talking to people about my financial issues and to get advice on what to do etc.

I've got debts all over the place and i've just maxed my 2nd overdraft. Debts are as follows:

Northern Rock - £7000 loan (repaying at £100 over 10 years)
Abbey CC - £6200
Lloyds TSB CC - £2200
Barclays Overdraft - £1200
Lloyds TSB overdraft - £1000

I have a salary that pays 24k basic and i also pay child maintainance which takes 15% of my net salary. I don't have any real assets save for a car worth around £4k. I don't own my own house and am currently renting.

I've had my head buried in the sand for far too long and want to do sort all this out - but just have no idea where to start or how to stop the rot....

All suggestions welcome....

[MelanieGiles]

Hi John and welcome to the forum

The first step is to conduct an appraisal of your financial situation, with a view to determining exactly how much you can afford to pay creditors each month, having allowed for all household and general expenditure.

Your debts are not enormous in the great big scheme of things, and it is quite possible that by working out a careful budget that you may be able to pay your way by extending the payment terms to your creditors. It appears to me that you have a debt management problem, rather than a debt problem, but post more information and the experts can express their opinions.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[john2007]

Hi John and welcome to the forum

The first step is to conduct an appraisal of your financial situation, with a view to determining exactly how much you can afford to pay creditors each month, having allowed for all household and general expenditure.

Your debts are not enormous in the great big scheme of things, and it is quite possible that by working out a careful budget that you may be able to pay your way by extending the payment terms to your creditors. It appears to me that you have a debt management problem, rather than a debt problem, but post more information and the experts can express their opinions.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Hi Melanie,

Thanks for your prompt reply. I'm not sure how I can increase the the payment terms as the only loan I have is to Northen Rock. I's the two credit cards that I have the main issue with as I struggle to make the payments each month. My income is 1500 after tax and my outgoings are £1295 not including the Credit card payments.

Outgoings are comprised as follows:

Maintainance -200
Rent -475
Northern Rock -100
Household Bills -320
Petrol -200

Household Bills are comprised as follows:

food 120
mob 35
telephone 30
ctax 80
water 10
electricity 25
insurance 20

That leaves me with £200 to do everything else (usually paying other bills such as car insurance, unexpected costs, basic socialising, paying off credit cards etc).

As you can see I'm right at the wire with what comes in and goes out and am slipping down a slope that I'm finding impossible to climb out of. Is there any more info i can give??

[Adam Davies]

Hi
It may be worth having a chat with the following company about the possibilities of a DMP[debt management plan].
Brightoak call 0800 0437 222 and ask to speak to either Andrew or Catherine.
Please be sure that you understand what a debt management plan is and that you are happy with the company providing it.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Great advice by Andy, and I concur with the recommendation.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[lisa]

i contacted andrew at this company after been recomended on here and boy im so happy i did, so far so good.....they such nice people