Hello
I have several creditors, essentially credit cards with varying amounts of debt, most with low interest rates owing to swapping around to get the best deals.
I am now considering an IVA but would it be better for me in the first instance to approach some of them with a view to making a personal arrangement, i.e. agreeing to make a lower monthly repayment having agreed to close the account?
My reason in thinking this way is that I could keep a couple of the lower debt cards running and still retain some credit.
Hope this makes sense.
Thank you for any guidance you can give me.
Regards
Steven
Hi Steven
Welcome to the forum mate.
What sort of debt do you owe roughly and how are you finding things at the end of the month?
The first thing to do is to complete an income/expenditure form so you have a full picture of your incomings & outgoings. There's a downloadable form on sites like the national debtline. It runs you through what you should be treating as a priority before you unsecured credit arrangements.
That will paint a better picture of what shape your household finances are in and will put you on a decent footing to then ivestigate the next step to sorting your debt out.
Approaching your creditors and agreeing a lower repayment is an option ... but if you do it yourself they are unlikely to support you for more than 3 months at a time. They will also expect you to treat them all equally which could make 'keeping a couple of the lower debt cards running' difficult.
There's loads of info on this site down the left <- which is worth having a look through plus we're all here to help you so ask whatever you want.
cheers
Hi
If you feel that you may be able to manage your finances by speaking directly with your creditors then I think that you should try this first. Work out your disposable income and offer this between your creditors, if this plan is likely to take longer than seven or eight years you may need to look at a possible IVA or bankruptcy.
Regards
I would always recommend that clients try to work directly with their creditors in the first instance - but sadly would have to report that it is rarely possible to get an agreement to suit all of them at the same time. Good luck - and at least you can say you tried in the event that things do not work out.
If you find it hard to get your creditors to agree to the lower payment and to freeze interest and charges then an IVA could be an option.
Visit www.iva.com for a list of companies and reviews. Give one or two a ring for free and impartial advice.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
