Thank you all for your replies. I can give you more details below about my situation.
I'm 26yrs old, live at home with parents & work in IT. I earn after a tax a salary of £1300, of which £350 is my rent, and another £250 for car insurance. Due to my high level of travel i pay slightly more on my car insurance and as such my petrol is almost another £200 on top.
That leaves me with £500 with which to then make payments to my credit cards & loans - although upto this point i have managed as 2 of the cards were on a 0% offer, they are due to now expire and the full force of the minimum payment will come into effect (from currently £10pm to approx £150pm)
On paper i owe £30,000 which consists of 6 credit cards and 1 loan (4mths left). I live at home with my parents who have also supported me by borrowing me money (£6000) which i have used to pay off existing debts.
I am in a situation whereby my career is at a level where it is starting to climb (hence my reasoning for wanting another loan to consolidate debts) as i feel that within 3yrs, i could potentially have enough disposable income to satisfy the loan comftably and not have to make too many sacrifices to my existing lifestyle.
I understand that if an IVA is taken (and has been recommended by the IP i spoke to on the phone a few days ago) then my salary increases will be taken into account and will therefore mean that i will not really benefit as this will go straight into the IVA. - therefore the usual 10% yearly increase will not really give me much more to live off if in an IVA - is this correct?
Secondly, i was due to move house from my parents and into another rented accomodation home closer to my commute to work - so i guess this will now too be stopped if i proceed with an IVA.
My questions to members of the forum is:
1. Am i likely to be accepted by Northern Rock for a loan soley for consolidation purposes - they want to see 3mths worth of wage slips.
2. If not, then the IVA would have to be the route to take, which will mean approx 5yrs payments (if accepted by the creditors)?
3. Can an early settlement payment be made say after 3 yrs, and roughly what would this be? I have spoken with Kingsgate Insolvency who will act on my behalf and have organised me to be sent a pack & arrange a telephone meeting with me later in the week. But i am terrified of the whole ordeal, i have already cancelled Direct Debits as they instructed me to, but am now having 2nd thoughts.
Sorry for such a long post, i think i'm in need of some support and i am grateful for such a site that allows people like myself in this predicament to share their problems.
