www.iva.co.uk

Hi, Advice needed please. I am 24 years old and live in rented accomidation alone with my son who's 3. I have no assets apart from a old car which i use for work (full time). I got into difficulties with debt through the past years and decided to go with spectrum financial protection. The agreement was to pay my creditors £1 each a month for 5 years and at the end of the five years i was to have saved £5000 to hand to them which they spread out to my creditors and i would be debt free. I owe about roughly £15,000 might be a bit more. I pay spectrum a total of £28 a month, £17 of this goes to sprecrum themselves a month and only £11 goes to my creditors.

The truth is, am a single mam living in rented accomidation which costs me £500 month and my son is in private nursery full time which costs me a fortune, i am not going to have this £5000 which is due in a year come january, i dont know what else to do? my dad has suggested going bankrupt, please help i dont know what else to do as i am getting worried as i am not going to have the £5000, any suggestions on what i could do?

Welcome to the forum, you're in a great place for advice and support. Please wait for an expert to help as I've not really heard of this kind of debt arrangement. Maybe a formal debt management plan, IVA or bankruptcy would be better, hang in there for an expert. Viki X

The Spectrum product seems slightly odd to me. Do you know if the ceditors have agreed to this?

Without knowing your personal circumstances, you do have a number of options including IVA, Bankuptcy or a debt management plan. Please look at http://www.insolvency.gov.uk/pdfs/guida ... ruptcy.pdf for a guide to bankuptcy. You may want to speak to an insolvency practitioner for all your options.

What a barmy scheme - it simply does not make sense to save money up and then pay it to creditors in five years time. Bankruptcy, on the face of it, would appear to be a much better option for you.