I am at a sticky situation in my life.

[dave.3]

Hi there,

I am at a sticky situation in my life.
I have 3 outstanding Debts. Credit Card(7k) and 2 loans(3k and 10k). They are starting to get to me now each month.

I am wondering if an IVA would be sutiable to me, I work and earn approx 1500 per month. I generally need some kind of advice as each month I am left with next to nothing to spend and am worried about where my next penny is coming from.

Thanks - David

[MelanieGiles]

Hi Dave and a warm welcome to the forum

If you were not paying anything towards these debts, how much disposable income do you feel you would be left with on a monthly basis? And are you a homeowner with equity?

[dave.3]

Thanks for replying melanie.

I am 27 Years old and I am still living with Parents, although I am currenly in the process of buying my own house.

Which is why I am wanting to rid these debts. I have tried getting a loan to consolodate them but get declined everytime.

So is an IVA the way forward? Or can you think of any other ideas which could help me.

I am currently paying £300 on 1 loan £200 on another and £100 on the credit card! I could easily afford paying out £350 to £400 a month. But the £600 I am currently paying is crippling me!

Thanks,

[pm5]

£400 per month i think would be acceptable as long as needed expenses are taken into account.

[zoe]

Have you already been approved for a mortgage? People in IVA's normally have to put down more of a deposit

[dave.3]

I have not actually got an IVA its what I am thinking of doing but once my house has gone through!

Is IVA the best thing for me to do to clear my debts??

Do I just pay for example £300 per moth for 5 years and then all debts are cleared??

To me that sounds too simple you see....what or where is the catch?

[sblack]

Hi,
Basically you will pay an amount (as much as you can reasonbly afford) for upto a max 6 years. This amount can rise at your annual review depending on your circumstances. If you have a property you will be required to have a revaluation/remortgage in year 4 or 5 and any equity may be payable into your IVA. You will also remain on the Insolvency register until 1 year after your IVA has been satisfied. I'm sure their are other things too but an expert would have to go through those. Not as simple as some would think but it is a great way of getting yourself debt free and learning a few hard lessons along the way, that is how I see it anyway.

[MelanieGiles]

I think that you now need to take professional advice as to the options available to enable you to repay your debts. An IVA is just one option, and you do need to have all options carefully explained to you by a licenced insolvency practitioner.

[J-DOUBLEYA]

I would think again about the house if you are thinking of an IVA !! Why not get the IVA sorted, clear your debts and start afresh with this all behind you.