What to do?

[bathboy]

Hello people, this is my first post, I am wondering what to do.

I am 22, (I know young), I have unsecured debts of £19,500 (I know a lot).

My monthly income is about £1000 (including my student loan)
My debt repayments are £550, rent is £345 (including all bills), insurance and mobile is £110 a month, leaving me no money to buy food, petrol, clothes, etc.....

I am a student studying at university and this amount does not include my student loan. Now I have missed a few payments in the past but my credit rating is above average.

However, I can not afford my debts anymore. I am not behind on any payments, but I am continually running out of money and can longer rely on my mum to bail me out.

I am considering an IVA, I do have few questions;

how would I go about it?
are there any other solutions?
At the end of university I am going to work in various countries for upto 18 months, I would still be able to afford the minimum payments, however would and iva allow me to do this?
how do you go about choosing an iva company and what should I look for?

Many thanks in advance,

Ian

[Martin2011]

Hi Ian,

I'd wait for one of the experts to come along and advise, but in the meantime, well done for recognising the problem and starting to look at solutions. Best to get some good advice now than wait longer and find you're totally lost in it.

Not sure whether an IVA is the right way forward for you, but be sure to check back as good advice is never far away here.

Best of luck with getting it sorted,

Martin

[debbiw]

Hi Bathboy, You would have three options, DMP (debt management plan) IVA, or Bankrupsy. A DMP is not legally binding, so your creditors may still add interest onto your original debt, and are free to pull out of the DMP at any time. A IVA is legally binding so once agreed, creditors are not allowed to take any action against you, nor add any interest on. You would be able to travel as long as you still kept up with your monthly IVA payments.
I think you would be best speaking to Melanie who posts on here, as she has a fantastic reputation with her IVA company. Whatever you decide, i wish you good luck

[Cybus]

I think the first question that I feel the need to ask is this ...

You are planning on working in various countries in the 18 months after university. How do you propose to fund getting there? -

Secondly, If you cannot afford to pay your debts in this country
how do you know you will be able to continue to meet the minimum payments on your cards whilst you are abroad?

I'm sorry if it sounds harsh, but I think you need to reconsider working abroad at the end of your time at University. By going abroad, are you not going to put yourself further in to debt?

I think if you were in an IVA you would certainly not be going abroad to work unless you demonstrate that you are not incurring further credit and that the amount you earn over there will be sufficient to cover both your out of pocket expenses and your IVA payments.

Personally I don't think you will be able to enter in to an IVA whilst you are planning to go abroad as that fact would have to be disclosed in the proposals and I think it would stand out a mile to creditors.

I think you need to restructure your outgoings and see what if any changes can be made as you admit you are living beyond your means.


Tell it like it is.

[bathboy]

It is a complicated matter, working abroad.

However the minimum will definatly be able to be kept. (thanks mum)

As for the wrok, food and lodging is included so is about $100 spending money a week. I can also earn extra money when I am there if needs be.

Perhaps it seem a bit two faced wanting to go work abroad whilst in so much debt, perhaps it is running away from it all. However it has been planned for years.

When I come back from abroad I will be in a well paid job, I already have the offer, and would afford to be able to repay the entire debt. Can they take this into account

[Adam Davies]

Hi
I wonder if you should consider bankruptcy and give yourslf a fresh start.
Have you looked into this option ?
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[bathboy]

I have, however decided against it as I don't really want to be bankrupt just incase it affects my future career.

However after speaking to someone at Thomas Charles they said it would be ok for me to work abroad as long as I can keep the repayments u while I am away.

Has anyone used Thomas Charles before?

[Adam Davies]

Hi
Just make sure that ALL options are discussed in detail,not just an IVA
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp