I’m really confused as to what to do right now

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Long tall sally
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by Long tall sally » Mon Jan 15, 2018 4:15 am
Hello, I’m really confused as to what to do right now. I have approx £16,500 debt right now, that is made up from 5 credit cards and a loan which will be paid off in around a year and a half. I pay all my monthly payments on time and have an excellent credit score, however as I’m self employed some months I really struggle and have to get subs to pay my bills. I’m now really struggling as I have to come up with £1,500 to pay my tax by the end of January.and still have other bills to pay. I’m really worried as i now don’t have the money to pay the rest of my bills. I was thinking of making the most of my excellent credit score and consolidating some/all of my debts with another loan or 0% credit cards. However I don’t want to make my situation any worse then it is.

I have been doing some research about entering an IVA but am unsure if it’s the best solution.
It really bothers me that my credit score will be effected for 6 years as I have a possibility of working together with someone this year which could help my financial situation. Also, I have been wanting to see my father in New Zealand next year.

Can you save money to go on holiday?
Once you have agreed to pay £160 p/m for example, do you pay that amount for 12 months?. What if you suddenly start earning more money, do you have to pay every extra bit of money to your debts?

Please could someone answer those questions as I need to make a decision very quickly.

Thank tou
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by Foggy » Mon Jan 15, 2018 7:51 am
Once your disposable income is calculated and accepted by the creditors it becomes your "base line". You make that payment every month. If you get more one month, about half of the extra also goes into the IVA. If. over the course of the year, you get a permanent pay rise, then the base line payment will increase by 50% of the extra from the annual review onwards. Being self employed makes this a little more complicated and your IP might work on a quarterley, six monthly or annual average --- you would need to discuss this with him or her. I would advise choosing a firm used to dealing with the self employed ( not all are -- and the S.E have unique needs).

On the holiday front, yes, you can save a little from your allowances and your halves of any overtime --- but I doubt it will cover a trip to N.Z.
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Shaun Vickery
Industry Expert
Posts: 747
by Shaun Vickery » Mon Jan 15, 2018 11:18 am
Why not have a chat with one of the experts on this forum for some specific advice, their details can be seen under the 'IVA Experts' tab on the left.
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by luluj » Tue Jan 16, 2018 6:58 pm
You need to get some professional advice - HMRC can be included in your debt if you were to go with an iva but professional advice is what you need to ascertain which debt solution is the most ameniable to your situation.
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