www.iva.co.uk

I have been reading this forum for the last month but have been too scared to post.

I am only 24 years old. For the last 3-4 years (since getting credit) I have gone fairly crazy.

It started with getting a credit card from Barclaycard. A simple £600 limit. While trying to keep up with my friends spending habits, this quickly got maxed. I then took on a credit card with my bank (LLoyds). It was 0% for 6 months. Just as quickly as the first, I had soon maxed this card out.

At this point, I didn't really think there was a problem. It was just an extra few quid a month on bills. Not a big issue right?

Then came the overdraft. I had a nice new fancy job, getting paid a lot in bonus (not basic salary). My bank manager approached me about a Platinum account. As a young man, this seemed amazing. The feeling of pulling out a platinum card in front of my friends was the most amazing feeling.

Long story short, I fell out with my parents and moved in with my girlfriend. The house is owned by her mum so I just pay board and help with food bills here and there.

Sit-Rep on my finances:

£2500 Lloyds Overdraft
£800(roughly) Very.co.uk
£1600 Barclaycard
£5000 MoneyWay Loans

I also pay £225 a month for my car, which is needed for work.

I'm getting to the point where I'm struggling big time to make ends meet. I'm 24 and I've got the blood pressure of a 50 year old man! I've always been a skinny runt but have put on 4 stone in the last 2 years!

I'm starting to get the feeling where I am alone and nobody can help me. Then I stumbled across this forum and have seen how much you have helped each other.

I made the brave leap to get in touch with VB, who have been great so far.

I suppose I'm looking for a bit of advice from the more experienced people in life.

It sometimes helps to hear "Everything will be ok"

Warmest Regards & Happy New Year!

Cam

Hahaha.....we all had our fun in having credit like there is no tomorrow....
Put an end to it now....10k debt is not a big deal.Preferably you have a debt management plan rather than any formal debt agreement with debt write offs.
You are young so don't damage your credit future.IVA protects you and clears debt like Bankruptcy does but nukes your credit files and still have their effect on you later in life after when it is settled.
Banks are tough in lending large sums to many people now and in any circumstances. Many wouldn't play the lending game again.

Beware of quick fixes to clear your debt.Ivas are 'final solutions' to debt problems and a five year sentence in penance.The long walk.

Thank you for replying so quickly!

I tried to go down the route of a DMP and spoke to Step Change about this. After working everything out, it was recommended that I go down the route of BR or an IVA.

My credit rating is already pretty appalling. I dont think the needle can move any further anti clockwise if it tried.

In all honesty, I've had BR shoved down my throat by certain comapnies becuase I'm not a homeowner and have literally naff all assets! I just cannot cough up the £700 quid for it. I also have premonitions of the judge laughing me off for being an idiot.

VB have been great. After going from sleeping 4 hours a night it was like getting a great big hug.

I've tried to do as much research as possible. Some people are making it look like BR is just a quick fix. "You get all your debt cleared, they don't take your Xbox or your iPad...in 5 years time, your a new man"

Hi. I would listen carefully to what VB advise and go from there.

At your level of debt, which is pretty modest by IVA standards, a debt management plan might be the way to go, at least initially, to see how it goes at getting the debt reduced without too much of a blot on your credit files.

It is not as bleak as it first looks ... just a matter of weighing up the solutions.

BR can seem inviting at times, and a couple of moths not paying the credit bills will cover the fee --- but it is a pretty large sledgehammer for this particular nut.

An IVA is no easy fix, but many of us chose that route over BR for various reasons. VB will, I am sure, explain all of the pros and cons.

Foggy and TzeKin, thank you for your advice

It's good to hear that my debt isn't that bad!

Hi Cam.

Take a look at Debt relief orders.
Cost only £90 but only for debts below £15k as long as you only have less than £50pm disposable. So this option may or may not be suitable. Google it.

I,m not saying it's good for you or bad, but not seen it mentioned on this thread.

Cam you are doing the right thing by addressing your debt problems. You are young and have time to sort it out. My only regret is not doing an IVA sooner. However, I would avoid BR unless absolutely no other option; this could have a more detrimental effect long term than you realise. Speak to several companies and get the best advice you can from the professionals. We have all been where you are now and no one will judge you here. All the best x

It may seem like the end of the world but as Foggy says - your debts are not excessive. Well done for realising you need to sort it though.

I went through years of denial, hiding it, pretending it would all go away. Our debt was huge when I finally accepted I had to sort it. And we did sort it, painlessly.

VB are a great firm for advice but if you want to be sure, speak to 2 or 3 firms. That way you can be sure you are taking the right steps. Head over to www.iva.com or select a couple of our experts on our site.

Thanks again guys.

After reading a lot of posts, I understand my debts must seem like spare change compared to the 80k'ers out there. Problem is, I only make 1100 a month. Board/Rent is £200. The car is £225, the insurance is ridiculous (same as all young drivers) and fuel is £250ish. What I have left over, goes into paying my debts. Most of which are ridiculous APR rates.

I really don't have a lot of disposable income. I help out as much as I can with food bills and things like that. But it leaves me with nothing for simple things like work clothes/dentist.

I recently told my girlfriend about how bad it is. She was super supportive and even offered to pay the BR fee's. I obviously don't want her to waste the money on me. I must admit, although my debt isn't stupidly high, I still feel like a criminal.

Your suggestions have been great. I had looked into a debt relief order, which suggests after the 12 months, payments to my creditors could continue if the situation improves. Which it of course would.

An IVA does seem like the best route for me, but purely because I cannot afford BR fee's. I don't want to base my decision purely on this though.

P.S. Already taken my first step by creating a new bank account tonight. Thankfully, it wasn't with a bloke called Dave that runs his office in Nigeria.

Hey Cam .. watch Dave -- he is holding on to my long lost uncles $60million bank account funds !

Who is the new account with ?

Natwest, I'm going to miss Lloyds, the bank manager was really nice!

Hi Cam

35k of debt and for the last 9 months have been in an IVA and to be honest, its the best thing I have ever done.

Good luck and this forum is amazing !!!

Hi and welcome to the forum from me too. acknowledging you have a problem is the biggest step and I feel confident VB will advise you very well. As a forum we're very friendly, non-judgmental and often have a laugh alongside.

Keep in touch and we will offer advice and guidance where we can .

Hi

You have made the biggest step by asking for help

Put your trust in VB, they are duty bound to give you best advice and they sponsor the IVA.co.uk website so you are in safe hands

Good luck

Regards