Help and advice needed.

[carlos]

Hello I’m hoping someone on here can help me before I start searching for some professional advice.

Basically I owe approximately 16k on four credit cards and one overdraft (5 different banks). The debts started following divorce approx 3yrs ago and slowly go bigger and bigger. Over the last few years I have swapped credit cards around onto 0% balances and slowly chipped away at the debt. I am now struggling to keep this up because banks are not offering the same deals as they have done in the past on 0% balance transfers etc.

My situation is my house is valued at 80-85k approx and I currently owe 73k on it. Along with this I have a 22k secured loan on the property which has approx 12 years to run. I can't re mortgage at present because I am tied in until June 2011 and even then there isn't enough equity to pull out of the house because it will be over a 100% mortgage which again the banks aren't doing anymore.

Meeting the mortgage and secured loan payment is no problem at all and I have never missed a payment or been late paying the credit cards but when the interest charge kicks in I don't think I will be able to meet the minimum fee which gives me about three months breathing space may be slightly longer.

I live alone aged 30 and I have my 4yrs old daughter who stops with me half the week. I received no form of Benefits/ Tax Credits etc

My monthly net income is approximately £1500.00 (Annual salary is 25k)

My monthly bills total £1050.00 monthly, break down is follows and are the only bills I pay each month.

Mortgage 414.00
Secured loan 244.00
Child Maintenance 150.00
Council Tax 78.00
Electric 25.00
Gas 35.00
house ins 30.00
car ins 32.00
water rates 18.00
mobile telephone 25.00

I currently pay £350.00 per month paying slightly over the minimum payment on all four Creditcards.

I then live off the remainder of my salary and the little savings I have left.

Basically I could do with knowing what my options are with regards to these unsecured debts with my income and out goings? Is an IVA suitable? Any help or advice would be really appreciated. Does any one have any ideas of figures on repayments and what I can claim that I live on etc

Thank you for reading my post

[MelanieGiles]

I really do think that you ought to take professional advice on this, rather than getting lots of comment on the forum about the suitability for each debt solution, where we are unable to discuss things with you so easily.

For istance, you seem to have missed out of your expenditure - housekeeping (ie food, cleaning stuff, toiletries), clothing, petrol and other motor running expenses - to the extend that I fear you will have no disposable income left to fund either an IVA or a DMP.

I also question why you are not entitled to any tax credits - but assume that you are receiving child benefit - and are you getting any child maintenance for your daughter?

There are probably too many questions to raise and answer on the forum about your specific case, and you really would benefit from an hour's chat on the telephone with an insolvency practitioner who can discuss all of the options available to you so that you can see what is actually available for you.

[kallis3]

Duplicate post.

[carlos]

Hello I receive no maintainence of my Ex partner and its her that claims the Tax Credits and Child Benefit. I receive form of Benefits what so ever. Sorry if I didnt make it clearer in my original post.

I guess I have come one here for general advice before contacting a professional like yourself.

Thank you

[MelanieGiles]

I do think that you need to think about your expenditure budget, and realistically determine how much you can afford. So many IVAs and DMPs fail because people are over-optimistic about how much they can afford to pay, and you do need to live a reaslistic life whilst you are in the IVA.

One question - why are you paying child maintenance when you have your child staying with you for half of the week, and your ex-partner is receiving the child benefit?

[carlos]

hello again, this was how it was set up in our divorce. Although my daughter's time is split, my ex wife is classed as the parent with care. I still have a responsibility to pay maintainence for the time that my daughter is with my ex partner.

Again before seeking professional advice I just wanted to know in my own head what my rough options would be based on my circumstances like how much would realistic living expenses be for someone in my position and roughly what my IVA payment could be.

I understand what you mean that a forum isn't the ideal place to be discussing my circumstances but again I am hoping to get some ideas of what is the best option to get myself out of this mess I am in.

Thank you again

[kallis3]

You really do need to speak to a professional in person. That way you can discuss your problems in great detail and be advised as to a solution.

Visit www.iva.com for a list of companies and give one or two a ring.

[MelanieGiles]

We cannot possibly advise you of your best options without conducting a much more detailed fact-find about your financial situation - and crucially determining the level of disposable income you have available for creditors.

I am sorry if this seems unehelpful, but we genuinely have your best interests at heart!