Hi. I have just joined forum today and find this a fantastic site (only came accross it a couple of days ago). In March 2006, i found my debts spiralling out of control. I had loans with four banks and also 3 credit cards. I admit, much of my debts were my own stupid fault living beyond my means, and i turned a blind eye to it for too long. I was trying to get loans to pay off loans over longer periods of time. In March 06, i made an appointment to see my bank manager at my main bank (whom i had banked with for 17 years) and the manager went through a consolidation form and decided i should have no problem as long as i paid my debts over 8 years. He said he would just need authorisation and would be back to me first thing next morning. Four days later after trying to get hold of him myself, he told me that the loan had been rejected. They had decided i couldn't afford to pay back £200 less per month, but seemed happy for me to carry on as i was! I was fuming. A week later, i stumbled accross an IVA company, and within a couple of weeks, they had seen me and everything was put in place, much to my relief. They told me an IVA was the thing for me. My debts were 34k, and they agreed i could pay £351 over 60 months. I had to move back to my mum's to pay cheap rent and i have never owned my own house (only rented). 15 months on, my IVA is now £409 per month (due to payrise) and i also pay an extra £20 per month due to a reduced IVA payment in January due to essential car repairs. I also pay £12.50 per month just to use the bank they provided for my use, so really at the moment i am paying approx £440 per month. I take home £1020 after tax, and i pay £200 rent, £100 in petrol, £42 car insurance, £18 options by direct debit, £25 per month mobile phone. I also put down £100 per month for housekeeping/Food, and £25 clothing. For the past 5 or 6 months, i have borrowed extra money off friends and family as i am always broke, and seem to come accross unexpected things each month. For example, i have had some heart problems, and am on 4 lots of medication which is £27 per month, and i had my computer fixed last month which was £70. I have had some advice from some experts in last couple of weeks and both have said that bankruptcy was easily my best option as i dont own my own house and my car is worth about £500. I dont feel this was ever given to me as a decent option when the IVA was set up and i wish i hadn't agreed to the first company who came calling without checking things out (but i was very vulnerable and naive at the time!), but checking how much the IVA company take in fees, i can see why they decided this was right for me! I know i am 15 months into IVA but 45 months of extra worry and borrowing more from family fills me with dread. I dont like the thought of bankruptcy (the stigma attached), but it is starting to seem the most likely option. Sorry for the essay, but does anyone have any advise? Thanks a lot.
