There are multiple options depending on your level of debt and your circumstances.
Take advice from a couple of debt advisers now and the future will soon look rosie again, I promise. An iva is not an easy option but it certainly enables you to move forward in life.
Get some free advice from an insolvency firm as there is always a solution there.
1. Gather together all your most recent statements or other correspondence relating to your creditors (including anything unopened)
2. List every creditor you can think of and the current outstanding balance (if you dont know the exact balance then make an estimate)
3. Make a list of all your essential outgoings, excluding any debt repayments. make sure you include everything, the list below will get you started
Mortgage / rent
Gas / electricity
4. Work out your monthly income, again include everything, Salary, any benefits you might receive and any other sources of income
5. Deduct your total expenses from your total income and that will give you a figure for your disposable income. Its from that disposable income that you will pay your creditors after you have kept some back for unforeseen expenses.
6. If your bank is also a creditor (if you have a loan or overdraft with them) then open a basic bank account with a bank that you have no current association with as you will need this later on to manage payments and it helps to have a "clean" account that is easier to manage.
When you have done this exercise then you should approach one of the professionals on the forum for advice, or go to one of the free advice services such as step change or CAB. The professional advisers there will help you work out what is the best solution for your particular circumstances. Whatever you do dont go to anyone who asks for any fees upfront.
Once you have got everything down in black and white you will not only feel better about it, but more importantly you will have taken the first big step to getting your situation straightened out.
Believe me, I know just how tough it is to get your head out of the sand, I was over £100K in the hole with so many creditors dipping their hands into my bank account that I didn't know whether I was coming or going, and any money that did find its way into my bank account evaporated instantly. Personally I opted for an IVA, it was extremely tough and ran the full five years, but ended in 2011 and I have been completely debt free ever since. It literally gave me my life back, and that is no understatement. These days I am extremely careful with money and I budget like crazy, in fact I run a daily budget and the first thing i do every morning is check my balance and adjust my budget sheet so I know exactly where I am. Whatever debt solution you go for, you will develop some good habits along the way, its been six years since my IVA ended and I'm still as frugal as i was when I was in it, I review all my outgoings evey six months and if I can get a cheaper deal on anything, then I just switch. You will get there.
I hope this helps you and best of luck, let me know how you get on.
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