Im so confused. Please help!!

[JLP80]

I am currently about 60k in debt to about 15 creditors,I have been tremendously stupid and need to finally build up the courage to do something about it. I am considering an IVA. I currentl pay all my creditors and have a perfect payment record but most months i just use one card to pay another and therefor nothing is really happening and my debts are just gettin bigger nad bigger.My experian credit report is 766 rated at fair but no matter what i cant get any consolidation loans.

The only thing that is really worrying me is las tyear my mum and dad to try and help took out a loan in there name for me 25k at areally great rate over 7 yrs. I pay tis religously into my mums bank account £367 a month. What will happen about this? I can show it went to pay off my debts and that it was transfered inot my account when the loan came through. My mum and dad said it was for homeimprovememts they have a really great credit record and got on easily. What do I do? Would this be included in my Total amount owed or would it come nder my mum and dads debt? Can still pay them that nad have an iva for everything else?

Im so confused. Please help!!

[freelili]

hello Jennifer and welcome

firstly I am not an expert just another person in debt, I wanted to reply to your post as you seem so desperate and in need of help.

You could go for an IVA if you have enough surplus income after your living expenses and secured debts are paid and if you are insolvent. Do you own your own home? I am not sure about the parents loan, as it is not in your name one of the experts will be able to advise you better than I can. However you are doing the right thing now, its only going to get worse isnt it? Have you 'fessed up' to your parents? I feel that yet another consolidation loan is not the answer, just more debt. Could you post what creditors you have and how much you owe each one and whether you are a home owner and the amount of equity you have/have not. Please dont beat yourself up about it, if a person cannot make a mistake, he/she cannot do anything. Try not to worry, there will be an answer to this. Good luck for now

LILY

[MelanieGiles]

Hi Jennifer

I increasingly see this sort of thing occuring these days, and this does obviously put you into a difficult position with your parents.

I am afraid that you will not be able to continue to make the payments directly to your parents within the IVA. Legally your parents owe the loan directly to the loan company, and you owe your parents. Therefore your parents are creditors of yours and would be included within the IVA, although do expect the other creditors to ask them to stand aside for dividend purposes in view of the fact that they are your relatives. (Very unfair in my opinion)

As you have already admitted that you are only maintaining contractual payments, on the basis of taking on further borrowings, I would urge you to seek more detailed advice at your earliest opportunity.


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

[freelili]

Jennifer

Try ringing a few companies to see where you would stand. Thomas charles are good and so are the other companies who post on this site. Steer clear of synergi.

LILY

[JLP80]

It currently stands as follows
5k overdreaft lloyds tsb
10 credit card lloyds tsb
11k loan egg
4k credit card egg
7k credit card marbles
5k credit card virgin
2.5k halifax
25k loan to parents payed for 13months now so it stands at about 21k
live at home with parents
no equity in anything

I still have credit cards with nearly 20grand available & people seem to want to give me credit still Just not in the form of a low rate loan!! which i dont understand i have agood job and make roughly 20grand a yr but dont seem to be able to see a end to things the way im going i dont spend alot but the interest is what is killing me and making it so much harder I feel i could afford to pay my debts off but need to make some sort of repayment plan or something and live by abudget is there anywhere that can help you with this sort of thing. I dnt want to get my parents inot trouble with the bank for saying they got the loan for home inprovements and cant bear the though of telling hem that ive messed up even bigger now.I know ive been stupid and that i need to get some sort of help but i dont know who to see or ask. Im so ashamed of the debt that ive got because ultimatly ive got nothing to show for it.

[princessb]

Hi Jennifer,

Please contact someone as soon as possible regarding your situation. I understand what you are going through right now and it seems like the most difficult thing in the world to have to admit the mess you're in to family etc but I can also tell you that once you've done it you will feel so much better. I tried coping on my own with everything but I got to a point where I just had to reach out for help and luckily my family and friends have been extremely supportive. I also have nothing to show for the £41k+ debt that I have but please don't dwell on it. The most important thing is that you've recognised you can't cope with the debt. The company I used is Action Today Group Limited based in Cannock. They have been wonderful so far and I've had two face to face meetings with them so far. Their website address is www.actiontoday.co.uk and you can find the phone number on there.

There are also companies on this website that will all be able to provide you with advice. By having an initial telephone consultation with someone you are not commiting to anything, I spoke to a few before finally settling with ATG. I chose the one I felt most comfortable with. Please try not to worry, there are millions of people in the same situation, you're not alone and there are always helpful people on here anytime you need us.

Steph x

[MelanieGiles]

Hi jennifer

It sounds like a Debt Management Plan (DMP) might be the best solution for you. These are less formal than IVAs, and it sounds as if you could just do with reducing your payments for a bit until you get yourself straight.

There are several companies registered as experts on this forum who can arrange these repayment plans. I suggest that you give one of them a call.

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

[freelili]

Jennifer

It is a good thing that you have realised your errors before you spend whats available making the problem a lot worse. You could try cutting the cards up and going into a debt management plan, you would have to budget, then with your small amount of extra save or treat yourself occaisionally, it would be worth more to you than spending a fortune on credit and then feeling guilty. You could try someone here or someone like payplan, or the Cab. I hope this works out for you. Your parents 'bail' didnt teach you anything, so perhaps this will. I am sorry if that sounds condescending, its not meant too. Good luck Jennifer

LILY

[JLP80]

where do i find information about debt management plans? your right free lili it didnt teach me a thing except that ive let them down again. its ironic though because i still pay them over 200 a month for board but i know they wont let this go towards my debts as i asked them last year and they said no.ive stopped spending money on anything and am being really good im not even planning a holiday nad i love the sun. I know i could quite easily bung it on another credit card but know that is not going to get me anywhere. Im only still young and i know its all my fault but for the past 5 yrs these people have literally been throwing money at me saying i could have this nd that.I fully accept it is my responsibility to sort out my finances but companys just seem so willing to hand there cards out.if anybody has any inofrmation about debt management plans or companys who spexialise in it or any words of wisdom(and yes this time im going to learn a lesson) please post so i can get myself sorted.
Thanks to everyone who has replied feel as if ive taken the first step.xx

[MelanieGiles]

Try Thomas Charles or Finebridge - they are both experts on this forum.

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

[princessb]

You're welcome Jennifer, just try not to beat yourself up about it too much. You're completely correct that it's far too easy to get into debt these days and it would be nice to see banks and financial institutions to become much more stringent with their lending policies.

If you contact Finebridge, ask to speak to Brian or Nicola. They are both very nice and understanding. I mentioned Action Today further up the page and they are part of the same group as Finebridge and if I recall correctly deal with the DMP part. You can contact them on 08000926350. My sister has just set up a DMP plan with them, they are extremlely professional but also give the personal touch which is always nice in these situations.

Basically what they will do is take all details of your debts. The amounts you owe, who to and how much you are paying back monthly. Go through your income and expenditure to clarify how much disposable income you have after all your personal expenses such as, rent/board, mortgate, utility bills, grocery shopping, car expesnes, insurance etc. They will attempt to negotiate a lower interest rate with your creditors or maybe even freeze it. You will pay one single monthly payment to whoever you choose to go with for your DMP and it will be be split to pay your creditors. This will all be taken care of for you. The company you choose should also deal with your creditors for you to stop the phone calls and nasty letters. This is a less formal arrangement than an IVA and you can continue on the plan for as long as you like, there are no contracts and if you do decide to go for an IVA further down the line then you still have the option.

DMP's are also pretty easy to set up.

[freelili]

Jennifer.

It would appear your cicumstances are limiting you to a DMP, your parents would not have to know about it. However with the amount you owe it might take years and years to pay back, you are not legally protected from crocodile creditors, or incurring interest. You would almost certainly be targeted by phone calls or letters,by people whose job it is to stress a payment out of you, then your parents would find out anyway. My advise would be to tell your parents, then you could make a more informed choice including IVA or Bankrutcy.

I am in a DMP, temporarily and still have phone calls/letters from creditors and although they have agreed to freeze interest, this is also on a temporary basis. I was afraid to tell my family, I am so glad I did now, you never know what is round the corner.

I totally understand your self blame, been there, still wearing the T shirt. You have to look to the future now and find ways to set yourself free.

I really hope that you can find a way to reduce this burden on yourself and wish you the very best of luck with what ever you decide to do. Please keep posting and let us know how you get on. You are not alone, even though it feels that way.
love

LILY