I am panicking!

[chris]

I have a large amount of debt but I am getting a huge bonus in July which should pay most of it off. However, I don't know how on earth I can make ends meet in the meantime and don't think I am the right candidate to take an IVA. What should I do in the following few months? I cannot get any more credit to service my debts in the meantime so am panicking!

[MelanieGiles]

Hi Chris and welcome to the forum

I suggest you write to your creditors and tell them about the bonus and how much you expect to receive. Also send them a statement of your current income and expenditure, so that they can see that you can only afford to pay a certain amount (even if it is just a token payment). Make sure you then stick to a payment plan in the meantime, and pay them off as soon as you get the lump sum.

Don't be afraid of your creditors - some of them can actually be quite helpful in these circumstances.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[chris]

Thanks Melanie. Will that give me a bad credit rating and is it likely they will let me keep my cards once I pay them off in July? Chris

[Oliver]

If you agree an informal payment plan with your creditors this won't necessarily affect your credit rating although this will be dependant on whether any of your creditors place a default notice on your credit file.


Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp