its all too much!!

[cantstopcrying]

ive just found this site and its so nice to know im not the only one in the situation im in.
I really dont know what is the best option for us.
we are around £40000 in debt and i just want it gone.
up to now we have been keeping up with min payment on credit cards but its so hard when we pay £80 and then get charged £82 interest! its a losing battle.
we have a car which costs us £296 a month and i would love to sell that but its in negative equity so is hard to get rid of.
i just need some help.

[MelanieGiles]

Hi there and a big warm welcome to the site. You will find much support on here from industry experts and just nice people who are in the same position as you and want to help.

You may not necessarily have to sell your car, as the finance payments can be taken into account if you enter into an IVA or DMP - and sometimes also in bankruptcy proceedings as well.

If you could tell us a little more about your circumstances - ie how much do you feel you could afford to pay to creditors on a monthly basis, and whether you are a home owner with equity, then we can perhaps advise a little further - but you also ought to think about contacting an insolvency practitioner directly for specific advice tailored to your individual circumstances.

But do keep posting in the meantime - as we all want to help.

[Skippy]

Hi and welcome to the forum. Please don't think you're alone - you're not, most of us on here have been where you are now and there is a way forward for you.

Good luck with finding a solution, and please keep posting x

[cantstopcrying]

our situation is a little like this :-
mbna/virgin card - £5495
lloyds - £4700
barclaycard - £5934
Hsbc graduate loan - £8200
hsbc card £2352
lloyds loan £1500
car £12000

i currently am not working although am looking for work ...have a small baby so cost of childcare is another worry. my partner is sel-employed within a partnership and is currently trying to get out of that due to his partner being very slack. Currently are at rock bottom....was ashamed to have to accept help from my sister and mother this week to buy food etc....but had to admit our position to them as i cant keep using the credit cards for food when the interest is killing us. have thought about consolidating our debt into one with the bank but not sure thta is the best way.

im not sure how it all works but if all the debts were accepted on an iva then i feel as though we could afford a monthly repayment of around £250-£300 a month...that would leave us with £200 to spare on other living cost such as food and petrol etc.

we also recieve child tax credits at the moment....do they come into play with the whole iva process?

many thanks for your responses.
i feel a failure as after years at college and uni all i have to show for it is debt!!

[cantstopcrying]

we do have our own home although the equity in it is no more than £8000 when we had it valued a few months ago.

[MelanieGiles]

What you also have to show for it is a loving partner, your child and your own home. So things are not so bad - and it is very tough out there at the moment.

Given the figures that you have provided, it certainly looks as if both an IVA and a DMP ought to be possible, as I assume that you would probably prefer to steer away from bankruptcy given the equity situation in your home.

Your child tax credits will be taken into account for the purposes of calculating your income, and given that you are stuggling now on a day to day basis I would urge you to seek professional advice about the options available to you as soon as possible - as that won't cost anything but will hopefully steer you towards a solution.

[cantstopcrying]

thanks Melanie....i do indeed have a very loving partner and a very beautiful child who gives me more than money can buy.

I will now definitely look further into the whole process.

One more question....when i read that the IVA will be sent to the county court.....is this process a public thing? would the whole world know we were applying for an IVA?

thanks.

[Julie]

Hi there and welcome to the forum - you've made a great start by facing upto the problem. As Skippy and Melanie have said, there's plenty of us who have been there / are just starting out.

If you enter an IVA your details will show on the Insolvency Register, but not in the paper.

Please keep asking questions and posting xx

[David Mond]

A copy of your IVA is lodged in the County Court in your area as and when approved it will be on a public register for anyone who wants to look it up. However, unlike bankruptcy (which has to be advertised) the whole world would not know unless they did a search. However your creditors and the credit agencies would have it noted in their files.

Don't worry too much as you have addressed your problem by visiting this site and Melanie has given good advice.

Discuss all of your circumstances with an Insolvency Practitioner who will give you the appropriate advice, be it bankruptcy, an IVA, a potentional consolidation loan (if available) or a Debt Management Plan. Visit www.iva.com for reviews on practitioners. Good luck and take care.