www.iva.co.uk

I have stumbled on here after fighting a losing battle with debt for many years. Ill keep this as brief as possible and if someone who knows what they are doing could point me in a better direction.

I have been struggling with debt, 5 credit cards and 1 loan totalling approx 49k. I recently started selling my personal items to meet the minimum payments and last month I sold my TV to make these payments.

After that I decided enough was enough and finally plucked up the courage to try to do something about it. I first called Egg who I owe 23k in card and loan. They were great to speak to and have given me a 3 month break to let me try to deal with it.

Then I called MBNA who suggested that I go and borrow money from a friend to pay them. I owe them 14k on a card. Then they told me I MUST pay them this month even though I explained I can't as I am completely broke.

This has deflated me somewhat and I don't know whether to contact the other companies or what to do. Hopefully I can get some advice here on going forward because I dont know where to turn now or if Im helping my cause or making it worse.

I dont own a home and live in scotland. Any suggestions would be welcomed thanks

Ian

Sorry I seem to have posted this on the wrong forum hopefully it can be answered here though. I should perhaps also mention that after suffering clinical depression for over a year after divorce I am now in a poorly paid job (take home £640 a month) but its easy on the brain and pretty much all I can handle at present.

I havent as yet missed any payments but I am now completely broke....hope this info helps!

Ian

It would appear that entering into a Trust Deed would be your best option - I recommend a company called Debt Alternatives run by Joanne Rolland who provide an excellent service in this regard. She will be able to talk you through all options to decided what is the best way foreward.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Thanks for this...do you know how I can contact her?

Ian

Hi Ian and welcome.
With no assets you must consider bankruptcy as this will draw a line under your debt.Living in Scotland you could consider a Scottish Trust deed[similar to an IVA but lasting only three years ].Your next step is to seek expert advice from a licensed Insolvency Practitioner,and you could start by contacting the companies that post on this site.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Here is a web link and the number is 0800 0436 444

http://www.debtalternatives.co.uk/

Hope you find a solution - you are in safe hands with Joanne and the team!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Thanks for your help Ill go call

Hi Ian

Just to say youre not alone, almost everyone here has been through the 'mire'

Although the situation seems hopeless, there is a solution to every problem. The thing you really need to concentrate on is your health.

You may need to miss a few payments, this will take the financial pressure off and put an end to the endless spiral of not being able to live, which must be making you feel awful. MBNA are one of the most aggressive creditors in terms of making sure they get paid. Most will say anything to get you to pay and none of them actually care how youre feeling or the effects on your well being.

Unsecrured creditors really cannot do much in the short term, they tend to shout and scream, switch the phone off. On the other hand youre priority debts, mortgage, rent, council tax and utilities can cut you off, throw you out, etc. They dont scream and shout, they have the power.

Your life and health is much more important than the 49K that you owe. You will find that you are amongst friends here. As I have been writing this I can see Melanie has already replied.

Good luck Ian, remeber youre not alone and please continue to post any questions.

lily

Thanks very much...I've made the call so I'll keep you posted.

Regarding MBNA - they a have a DMP section - not many know this -avoid the usual collections and customer service antiques! Ask for the DMP section and say you can ONLY make reduce payments, they will ask how much you can pay and you can say you are sorting yourselve out in the long term.

interesting story... past experience tells me that MNBA are one of the worst creditors for throwing their weight around. Don't fall for it. If they encourage you to go on a reduced payment scheme take advantage of it, and do the following:

Write a letter to each creditor explaining you have no reasonable living costs at the end of each month, once their payments are paid. Provide a full account of your incomming and outgoing. The letter should also indicate how much your willing to pay. If it's just five pounds, then that's what you pay.

Once you've done this you will have been assumned to have taken reasonable care handling your present debt. Your creditors can't sherk away from this.

You must then contact an IVA or Debt management company, but only recommended by the moderators here, or by the CAB. I used Payplan who are excellant.

You could seriously consider bankruptcy if you earn a small amount and have no assets to speak of, eg car, house, savings etc:

good luck, you not the first or last