www.iva.co.uk

Hi Everyone,
I am new to the forum, found it by accident while searching for some information.
I have got myself into a bit of a mess (£50000 aprx ) 2 loans 6 credit cards, for last few months I have been using 2 to pretty much live on, adding to the problem, paying minimum payment which only reduced the debt by £20- 30 but then using cards to get petrol etc using £50 plus a time, I have now maxed the cards out and used my overdraft for the last two months, this month I have worked out that I will not have enough to pay all my commitments, and have enough for living expenses etc I know it is my fault for being none to clever with managing my finances, and only have myself to blame.
I was just wondering what I can do, I have never been in this position before in my life and feel very ashamed and embarressed about it, do I write to all my creditors and explain things, only the ones that I cannot pay, do I pay all a liitle less this month to all or not pay some, I just dont really have a clue, I have been reading posts for a while now and I know there must be a way forward for me just not sure what, is an IVA an option or do I have to let things get worse ?. I Have to try and get things sorted without my employer finding out, I have read stories of people being hounded at work etc by creditors, I work for a company that deals in Precious metals etc so being in debt is very much frowned upon and could jeopardise my employment, might be too tempted to steal the gold is the view they have, I have seen how others are treated when they are suspected of financial problems. Thats enough for now have to go to work for night shift.

Regards
Mark

Hi Mark just wanted to say hello and welcome.
It will help if you can give a few more details. income ,living expenses,disposable(what is left after living expenses, dont include any debt payments). Full amount of unsecured debt, and also if you own your own property and if so is there any equity. Sounds a lot but it will be a lot easier to advise on possible options for you.

Ang

Hi Mark

You have various options available to you, and IVA being just one of them, and the best thing to do would be to take advice directly from an insolvency practitioner who will be able to take time to discuss the advantages, disadvantages and implications of each one with you.

From the information you have already provided, it is clear that you need to do something as continuing to live on borrowed money is just going to make the situation worse.

Ang's idea to work out a household budget (excluding payments to unsecured creditors) is a good one, and will be useful if you do decide to seek professional advice.

Hi There,
Thanks for the rapid replies was not expecting any so quick, just logged on at work quickly.

I will have a think during the night about exact in and outgoings and post tomorrow after I have recovered from my last night shift but off the top of my head.

Monthly income after tax etc £1600
live in private rented accom.
expenses no more than £700,
Disposable £900
debt is £52000.
The minimum monthly payments for the 2 loans and 6 cards is £1410

My appologies if my first post came across a bit blunt in places, I am the first to admit I am not the most eloquent in my written work.


Thanks again
Mark

Hi Mark
On the limited info you will need to look at a debt management plan firstly as you could repay all your debts in five years if you could get interest frozen.
Regards

Those expenses look very low at £700 - make sure that you include enought for contingencies such as car and house maintenance, medical expenses and general expenditure such as clothing.

I would suggest that you speak to a couple of IP firms directly, it will do you no harm to get trained, impartial eyes to look at it and come up with the best solution for you.
As Melanie quite rightly says there are some expenses that you very rarely realise are there but need budgeting for nonetheless.

Good luck.

Mark as said make sure you put everything, glasses prescriptions home insurance, clothing,travel and a contingency. Hope the shift isnt too bad.

Ang

Thanks again for the replies,
I have come up with a list of expenses, it was harder than I thought, to think of little things you take for granted.

Travel mainly petrol 250
Car maintenance 50
Insurance for car + tax 45
Electricity 50
House insurance 25
Medical + Toiletries 50
Rent 100
Food 100
Clothing 25
BT 25
Mob inc internet 30
Water 15
Emergency 75
Sociallising 50
TOTAL 890
A few I normally pay annually so have divided by 12, cant think of anything else.

Today I received a monthly credit report update, part of current account and it states total owing £58251, it should be £4000 less as this does not include my car which has been settled recently.

Thanks
Mark

That seems a more realistic budget Mark, and I now suggest you seek expert advice from an insolvency practitioner as to the options available to you. Continued borrowing which you will be unable to afford to pay is not really a sensible option, as you have already realised.

Thanks Melanie,
I will try and make a call or two tomorrow morning, hopefully I can get some quiet time and some privacy.

Update to this post enquiry form filled in on online following Melanie`s Link, as I am venturing very much into the unknown and with all the good reviews for Melanie, seems to be the most sensible choice.

Thanks again
For the responses
Mark

Hello everyone,
not sure if this should be started in a different part of the forum, but I will do it here for now.

I have spoken to one of Melanie`s colleagues (not sure on protocols so wont mention names) and have started the IVA route, Just the initial contact and a fair bit of info via the phone, but it is a start and I do sort of feel a little happier knowing that I have at least started to do something about it.

Many Thanks to all who have offerd some advice.

Best Wishes
Mark

Well done

You are in great hands.

Excellent Mark ... to every problem there is a solution [:)]

Good luck, and keep posting to let us know how you are getting on.

Debbie

Good Luck Mark you won't go far wrong with Melanie and her team, all the best