|Consolidation loans should be banned although perhaps they help some people. I tried that but found the repayment almost as much as my debts so still ended up using cards for unexpected expenditure which is why I am in an IVA because I had the loan to pay plus CC debts. Thinking back I can't understand why I thought it was the answer but as it said hindsight is a wonderful thing.
As others have advised speak to a insolvency practitioner for some advice.
Wishing you well
Jan
Nothing you can buy feels as good as not being in debt.
Consolidation loans are fine as long as you use them for just that. We had one, paid off the debts - and then just ran them up again! Our own fault, no one elses.
We should have been strong and cut up the credit cards as soon as we paid them off. In an IVA you have no choice. At least I know at the end of all this I won't have any plastic to fall back on!
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
Hi fifidee, I would definitely talk to an IP, they will be able to put you in the right direction. Since joining the forum, I have spoken to a couple of IP's and they think I've got a good chance and our sums are very similar. After all, you have nothing to lose by speaking to them. Let me know how you get on?
Good luck x
Last edited by juliada on Fri Oct 17, 2008 11:27 am, edited 1 time in total.
A very common scenario that and it is very easy to be wise after the event. Consolidation loans can indeed work for some people, but the general reason that they eventually fall down is not because people are deliberately reckless and spend again, but because the sums have not really been thought about as they should have been.
For example, Mr and Mrs X have debts of 20k paying £600 per month. The nice man at the bank suggests a consolidation loan to help which will reduce their outgoings to just £300. It is very easy to just look at the "saving" and not beyond. Where Mr and Mrs X lose is not just in the fact that they now owe £28k instead of £20k, but if their true disposable income is only £200 then they will unwittingly force themselves back into more debt to keep their heads above water and because this process is gradual it isn't immediately very noticable. Within a year some debts will have been run up again but not look massive at first glance, the key being though that they are now lumbered with a £300 payment that they can't afford but also more payments on the the other debts so the gap between disposable income and debt payments grows ever wider each month, speeding up this insidious process ever faster until the point is reached where Mr and Mrs X wake up one day and have to ask themselves "how did things ever get so bad?"
It is all exacerbated further when this process is done by securing the debt consolidation loan on the property of course.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Been there, done that and still wearing the T shirt! 5 years still left on a secured loan on top of my IVA!
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
Ahhh but I bet you are really looking forward to 54 months time when your IVA finishes and 60 months when your secured loan finishes. All your hard work and sacrifice will seem well worth it then I'm sure.
Sometimes it isn't the clangers we drop that define us, it's how we deal with them that is more important.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Hi all, thanks again for the advice. My bank called me the other day, regarding a failed direct debit mandate and boy they wasted no time in getting my money to cover it and I had to gently persuade them not to charge me for it! So I can only imagine what they would be like if I were to default on any of my five payments I have to make to them every month. That is the only thing that they seem to have well organised - getting your money.. and quick! But if you're trying to get them to do something for you, they take their time about it? I so want that IVA.. It's only a matter of time before I will need one, I just hope they say yes.
I shall be using my first couple of months free money to go on a b****y good holiday!
It's taught us a valuable lesson though - we won't be going down that road again!
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
