Any advice would be massively appreciated

[beardedlady]

Left university 6 years ago with student loan, overdraft and credit card debts. Since that time I have added to this with further credit card debts and a graduate loan.

Recently hit breaking point whereby my outgoings exceed my income. I earn £25,000 a year (take home £1,500 each month), paying £500 to credit cards (just minimum payments on four cards) and my fixed costs total approximately £930 a month. These figures do not take into account food shopping and living expenses.

I owe £24,500 on credit cards, £5,200 on student loan and £2,800 on graduate loan. Total £32,500.

I have gone to my bank for crisis talks. They offered option of a managed loan, but this would only consolidate the debts I have with them. Having looked further into this, they have now said they will not take any action until i have got my credit card companies to reduce my payments to them. No help.

One credit card company is sending me an expenses form to detail my spending and look at reducing payments. Another directed me to the CCCS for what sounds awfully like an IVA.

I was directed here by my sister who said that my intended course of action will leave me financially crippled for most of my life and is not viable. Any advice you can provide me would be massively appreciated. In the meantime, I will study the forum to look into both IVAs and bankruptcy.

Many thanks

[Hels]

Hi,

On the CCCS website there is a debt remedy form that you can fill in. I did this and found it really useful for working out what my disposal income was and what I could potentially offer my creditors per month after taking into account all of my living expenses. You do all of this online. It will spit out what it thinks are your best options based on your income and expediture, i.e. IVA, DMP, BR,. I found this a good starting point before going out and speaking to people directly about my options.

Good Luck whatever you decide to do.

Hels

[Adam Davies]

Well done to your sister,she,s correct in that consolidation loans can lead to a very long and sometimes neverending debt repayment cycle.
I think the first thing to do is to work out your actual disposible income as you have several options open to you.
regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[MelanieGiles]

Hi beardedlady

Whatever decision you eventually come to, do make sure that you fully research all of the options and choose the route you feel best puts you on the road to financial recovery. And take specific advice from two or three experts just to compare what is available to you.

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

[Dominic]

aovid conoslidation loans if you can, they tned to get reconsolidated with further laons until the bank has you over a barrel.

An IVA may be a good route for you, but bear in mind only do it if you cann afford it over the period of the IVA.