i feel as if i am drowning in debt

[michelle]

I'm a 25 yr old journalist on £20,000 living in London. I have about £20000 debt including my student loan, two overdrafts, a credit card and some outstanding council tax from a couple of years ago. I really struggle to pay off debts regularly and can only just about cover the interest. I'm considering an IVA but do not know whether i am in enough debt to be eligible, whether my credit rating will be so bruised that I will never be able to get a mortgage etc if i get one and whetheri would be able to afford to make the payments back. I would really appreciate some advice as i feel as if i am drowning in debt and however hard i work i cannot seem to get out of it.

[aguise]

Hi Michelle
Yes you do have enough debt to be considered for an iva, but it will depend on income. You will not be able to get credit while in an iva unless permitted by your IP and yes you would be able to get a mortgage in the future. Others will be along to advise if you post more details, income, how many creditors etc. you will get help.
Dont worry there will be an answer,no need to drown learn to swim

Ang

[MelanieGiles]

Hi michelle and welcome to the forum

With regard to your student loan, I assume that you are already making repayments to that via your salary, given that your earnings are in excess of the threshold. That debt will therefore likely be excluded from the IVA.

You are therefore left with a relatively low level of debt, over just a few creditors. Depending upon the level of your disposable income, which you should calculate by taking your take home salary and then making allowance for all household and personal expenditure, including contingencies, then a debt management plan with your creditors might be a better solution.

Either way you should seek further advice, and any of the experts on the forum will be happy to provide this completely free of charge.

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