We have several debts, some of which is a shortfall from a house sale (we now rent). Debts are aprox 38k plus I have 8K of student debts that have always been on hold. Since the extra debt of the shortfall we are unable to pay our debts comfortably. CCCS suggested an IVA for £215 per month we have four creditors, plus then the student loans. Our income is £1773 our expenses aprox £1500 is this feasable and a good route or would it be better to rob peter and paul to pay simon each month??
Sorry for the jibberish just unsure of what is for the best?
In my experience, robbing peter to pay paul is never a good idea. What happens when a major purchase comes up, or something breaks? Its all going to go on credit and things will get worse.
Plus, the amount of time it will take you to pay your debts off will be huge.
An IVA will afford you the chance to pay some back, yes while being on a tight budget (you are anyway), and be completely free after some hard work.
As Andycase007 says RPTPP is not a good solution as you are only moving the problem around each month and slowly watching it grow.
The best thing you can do is calls 2 or 3 companies to discuss your situation in more detail to understand properly what your options are. There are Insolvency Practitioners and companies posting on here and there are good reviews to read on www.iva.com for more information.
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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Life in an IVA is in my opinion good. Money is tight but then it was while we were trying to pay all of our creditors. The difference is that there are no scary people chasing us for money we dont have so we can now sleep at night. And yes we do have money left at the end of each month,not much £5.41 this month but it is all ours.