So scared

[daveyboy]

I am currently deciding what to do in regards to our finances. We have an 8 month old baby boy and no money!
My wife is currently receiving maternity allowance and this is due to end this month. We have applied for loans and CCs to use in the interim period between when the maternity allowance ends and when she finds a job (numerous applications sent)
Today I was offered a loan @ 64% APR. needless to say I said no!
So, I have been in touch with Baines and Ernst who have advised of an IVA. another company has sugested debt management, and now i am confused. They have calculated how much I can afford to pay and it looks promising, but I am so scared incase the creditors say no.
I dont know what I am to do. Its hard to look into my babys eyes and know that I cant afford to buy him toys and clothes
Im sure that everyone on here has been in this situation before.
Also, I am scared as I had planned to go to University in september, but now it looks as though I wont even be able to afford to do that. 24 and broke. But - its my fault and I have to pay the price.

[MelanieGiles]

Hi Daveyboy and welcome to the forum

How much do you think that you can afford to pay creditors each month, and how much do you owe? Will you be able to sustain payments when you go to university, and do you have any assets such as equity in a property?

Have you also considered bankruptcy proceedings as an alternative?

[daveyboy]

i owe £17k, and i am a private tenant. I know that it doesnt look like a lot of debt, but my salary is way under that figure. I have around £180 that i could afford to pay back monthly

[MelanieGiles]

Well I'll throw in another suggestion then and ask have you considered bankrutpcy proceedings. If you have no assets which would be at risk from such proceedings, this would be the quickest and cheapest option for you, as £180 is a fairly low sum to be putting into an IVA, and Debt Management would take over 8 years to repay even if all of the creditors agreed to stop charging you interest.

[Soulgrowth]

Just wanted to say "good luck" daveyboy ... perhaps this is an opportunity for a fresh start for you and your family.

Debbie

[daveyboy]

How much do you need to pay into an iva? bains and ernst said that they are proposing £162 per month?

[lily]

This is a low amount of debt to enter an IVA with. Have you thought beyond this panic stage that youre in right now??? Your boy will be over 5 when this ends. I do think that you should look into bankruptcy, I know its a scary word but please just take a look. It really might be your best option.

Take care and please dont feel that you have failed your family. If only every father could look into their babys eyes and feel this way. He is a very lucky boy to have you, dont you forget that.