I have a considerable amount of unsecured debt I do not own anything & i am struggling to makes ends meet every month my pay goes in & doesnt cover my overdraft what do i do ?
How much do you owe? Do you work? Has anyone spoken to you about the options available?
If you can't meet your minimum monthly payments then you need to speak to an Insolvency Practice - there are lots around and the reviews at www.iva.com might help to point you in the right direction. I'd always recommend phoning a few different companies to make sure you are getting good advice.
Sorry to hear about your situation. What steps have you taken so far to address the situation? Have you looked at your own budget in detail, contacted any of your creditors to tell them that you are struggling? Do you know what options you can or can't do realistically?
Hi Joan - sounds familiar! Speaking to a professional will help get everything clear in your own mind and take a lot of the weight off your shoulders then you can chose the best way forward. Some people opt for a self managed DMP and so do not pay fees but there is a lot to be said for a fee-paying service. When you have all the options go with your gut feeling. A good ip will make you feel very looked after during a difficult period, which to me was priceless.
There are various options you could consider, and if you have no assets which would be at risk under bankruptcy proceedings then it would be worthwhile finding out more about this process to see how this may affect you into the future.
If you are keen to repay your debts, there is the option of debt management or an individual voluntary arrangement - both of which work on you calculating an affordable sum to offer to creditors on a monthly basis - the difference being that you would probably only repay for a set five or six year period were you to choose an IVA, with the balance of the debts written off at that time. This can be seen as a preferred route, if you could not afford to repay all of your debts in a similar timescale.
I would contact an insolvency practitioner who can advice you on the advantages, disadvantages and implication of all of the above options.
How much do you owe? Do you work? Has anyone spoken to you about the options available?
If you can't meet your minimum monthly payments then you need to speak to an Insolvency Practice - there are lots around and the reviews at www.iva.com might help to point you in the right direction. I'd always recommend phoning a few different companies to make sure you are getting good advice.
I have 12.880 in debt to companies (bank mainly), 2.500 to a friend & 12.500 approximately student loan debt. I think the student loan has to be paid whatever & that is deducted from my wage every month automatically.
I just feel engulfed in debt I have never managed to get out of debt since leaving uni, i was a mature student & took Mr Blair's advice of education to break the poverty trap, ironic or what.
thank you all so very much for your prompt response I dont feel such a leper now, i realise I am not on my own.
Regards Joan
Hi Joan
You have a few options open to you.
There is a solution for you and you will feel much better when you have spoken to people and have a plan in place
Speak with several experts/companies and explore all the options open to you.
You are quite correct in that Student Loans survive bankruptcy, can't be included in either an IVA or Debt Management Plan
One thing to remember with insolvency if you have a debt to a friend is that you're not allowed to treat any of your debts preferentially - so you can't "write off" your debts to the banks and then pay your friend in full.
Depending on how much you can afford per month and your other details, you could be suitable for self help, a managed debt management plan, an IVA or bankruptcy - there really are loads of options. Give a few IPs a call and have a nice chat, and let us know how you get on!
Regardless of what you decide to do it may be prudent to open a new bank account with a lender to whom you owe no money. If your credit file is not damaged this should be easy enough or you could try the CoOp. At least then when your wages go in you can pay what is important and not have them swallowed up by interest, charges and direct debits to creditors. Get some free advice from an IP firm and you should get some sort of solution.
There's nothing to stop you from opening a new bank account, and as Michael says it will help you to pay the important bills before your other creditors.
If your current bank thinks you are in difficulty they could reduce or remove your overdraft facilties leaving you in serious trouble. They cannot stop you opening a new account and protecting your income while you decide on the best way forward.
