is this bad debt or what?

[n958g]

Hi - please can someone let me know what i can do? i really have reached the end of the road. I earn 1500/month. my u/sec debt is about 1300/month. i've used some 'short term' loan companies, cheque cashing etc as i needed to pay bills 3 months ago. i now owe the short term loan people about £700/month, and now have to spend every weekend either extending cheques, and borrowing from one to pay another. i'm now about 1-2 months behind with about 6 creditors and i don't want them to start soming round to collect the debt. i just needed to pay the short term people off, but i can't get a loan anymore as i've got too many outgoings and not enough income. i have a car on HP, but i can't loose this else i'm finished. Any idea's?

[wen]

Hi n958g, and welcome!

I cannot advise you on what to do, but hang in there and one of our many experts will be along to advise you soon -- you have come to the right place!

[size5]

Hello and welcome.

You will almost certainly be able to get help, it just depends what the right solution for you is. You would be best advised to speak to a professional directly and a good place to start would be to visit www.iva.com have a look round at the reviews etc. Take time to speak to 2 or 3 people before you make your next move. In all probability you should be back on the right road very quickly.

Hope this helps.

Regards.

[n958g]

thanks, i hope so.......

[michael.t47]

Hang on in there, i am sure an expert will be here soon
and yes you have come to the right place

[wen]

What are the total of your u/secure debts? Also if you take the repayments out of the equation how much income would you have after your living costs per month?

[n958g]

nothing. becuase i've used cheque cashing companies to try and tide things over, it's gotten worse. i think it might just best to let all the cheques clear and put myself well overdrawn and pay the charges, that way at least i won't own them anymore. i'm worried the bank won't honor the cheques and they will come round my parents house for the money - i have £1600 of cheques outstanding that i keep rolling over each month - by either paying the interest or re-writing a cheque.

[n958g]

sorry - total value of un/sec debt is about £40,000. that is including a car on HP - which i need - else it is loans and c/cards.

[wen]

If you were to stop paying all your unsecured debts (including all those outstanding cheques), how much "spare" cash would you have per month?

You would need to wait for an expert to advise regarding your HP car though.

[n958g]

if i paid nothing at all, i'd have about £1100 spare a month!

[wen]

Then don't panic, there will definately be a solution for you, I am not an expert though, so you'll have to wait for our experts to come on board and they'll be sure to help you soon.

[size5]

How much do you owe on your car, how much do you pay per month for the HP, how long do you have left to pay on it and what is your best guess as to its current market value?

Regards.

[n958g]

it's on 0%. i owe £3800 at £155 per month, 2 years to go. it's worth about 5000

[n958g]

got to go now, back tomorrrow!! thanks for your help, i feel a bit better - wish i'd come here months ago. to think i didn't owe 1p 4 years ago....

[size5]

To sum up then, you have around £36000 unsecured debt plus your car, which doesn't look overly excessive to me.

Working out what you can afford to repay is the next question. Income minus outgoings, which may include but are not limited to, board contribution, car payment, road tax, petrol, car insurance and general maintenance, mobile (assuming you live at home and don't pay the landline) general living and clothing costs, and a contingency allowance. Once that is done you will know what sort of contribution is expected. If your debts can be paid within 7 to 8 years, assuming interest freeze, then your creditors would probably want you to look at a DMP. If longer than that you may have a case for an IVA. Instinct tells me that a DMP looks favourite, and be prepared for the fact that you will need, in all probability, a new bank account.

Regards.