Up to my neck & rising...

[Michael Peoples]

Do not feel too guilty. If you really have a surplus of £230 and were paying £650 you have been losing over £400 per month. This means your debts have been increasing by the same amount even though you have not benefitted from any extra debt.

You are doing the right thing now and good luck.

[Tina Shortland]

Hi Totalmoron - its the same spiral that most people get into when there is less coming in tan has to go out - you can't do anything about it apart from what you are doing now. Don't beat yourself up - be proud of the fact you are doing something. No doubt at some point you will go through "why didn't I dod this sooner" phase but that happens to everyone - we could say that for lots of things. You've done the hardest bit which is getting the ball rolling...and don't worry us, professionals aren't scary, honest!!!

[Slipperysnake]

Hi
First you have solved the problem by admiting to yourself and your parents thats the most important thing above anything else Money is money and never let that control you

Ok now you have to resolve the payback Basically you are already doing that but the amounts are exceeding what you can pay I was in the exact same situation as you but my debt was higher Loan and credir cards.

Firstly you need to speak with a couple of the IVA companies check in here for the reviews and comments from users as to who is a good company and who are using this forum so that you can contact them a lot easier
you are the same as me you want to avoid the bankrupty route so when you do have a chat with whoever you want to ask then see what there advice is When you call them they will ask you a few basic questions ie how much you owe and your salary and general circumstances

Then they will say ok they think you are suitable to go for the IVA Next up I was asked to send all my debts statement to them and I then had a 20 minute chat with a really nice guy went through how much I needed for a month and said what I was allowed and not allowed he kept adding things I hadnt thought of and we arrived at a figure that was a lot less than my bank loan so I said yes ! never mind the CCs so I was happy at that

Next they send you a bunch of legal file of forms to fill out that you read sign and date on every page that goes back to them

In the meantime your bank and credit card people will not know your starting an IVA yet ! so First you need to get a new bank account Dont tell them why just say you want a new account get one thats easy for you to go to or has some online banking most have
Then transfer all your direct debits for your personal things ie phone salary from work tell them you are changing banks

any bank loan Direct debits you have do not transfer them to your new account Do not tell your old bank anything whatsoever they are now the enemy

Your new bank will sort that out for you takes a few days I think to set up Depending on how much you have in your old bank account draw the whole lot out and leave it at Zero Cut your credit cards up

While your IVA ball is rolling along you will get a few letters from your Bank and CCs companies saying you havent made a payment and it will be added on the mext month Your Bank loan will just get taken out of the old bank account and it will then go overdrawn basically Its computerised it doesnt know You will not get too much fuss the first month of missed payments

Ignore it and dont worry about it
I cant remember as I am near the end of my IVA If I was told to send my bank a letter to say I was starting the IVA you can ask your IP about what to do things change all the time

With the CCS and phone calls I got called about my Credit Cards saying I had missed a payment I said I am entering an IVA and can you take my home and mobile phone numbers off your database as I dont wish to be called again The guy said yes no problem

If you get any problem when you tell them just spout the Data Protection Act at them they wont know it Just say something like under the Data Protection Act of 1983 I do not authorise you to have my personal or home number on your system if you call me again I will make an official complaint to your company and the Data Protection Board As far as I know they are only allowed to keep your home address for contact purposes So thats your nuisance calls solved

Then its a waiting game to your IVA meeting which I think mine was about 8 weeks of waiting all the time to me was a blur then you get told to be available at a certain time in the day and they call you to say Yes all ok and then they send you a Direct Debit form to fill in for your IVA monthly payments Choose a date thats a few days after your salary payment day

Will you be accepted ? If the IVA company goes ahead then you are pretty much going to be accepted unless there is a huge problem you dont owe that much in the grand scheme of things

At the end of the day you are attempting to pay back as you have said you want to do
If they dont accept then they dont accept

Okie Dokie once you are into the IVA the first year is a relief the second year you are ok Year three is tough and starts to drag and you think you will never get to the end Year 4 you start thinking oh yes this time next year
Some people say yes its ok and not that bad Depends on circumstances some people are married or have a BF GF who can cover them in that time If you are on your own then its tough Not the fact that you are paying just that you are worrying if you cant get to the end all the time hanging over you You can look at it as a 5 year bank loan which I have done and others do from what I read here But its not the same really

What you need to do is toughen up a lean dog for a hard road .
Forget the past you cant change it and look at yourself and why you used the money in the way that you did Some people get in a mess because of serious problems or in my case just got credit thrown at me and fooled myself I could pay it off ahhhh its only a nonths salary Ahhh 2 months salary ok ok 4 months I am free Ok sign me up for a 3 years bank loan and I will clear that in 6 months no problemo !!! oh look credit cards are empty and so on My CCS were at 13%apr at the start at the end they whacked it up to 27% apr and the interest on those alone was more than I was paying back I was looking at a huge black hole when I started

You have a choice either keep digging and going more down or start climbing out then when you are starting your IVA you are at the top of that big hole and it takes you 5 years to fill it in

good luck you will be fine

You have to fall before you can get up again !!

[Foggy]

Hi slippery -- comprehensive post there. thank you

[Gina.gu]

Nomoremoney totalmoron (and maybe get that changed as you are definately not!) Well done for taking the steps to sort it out. Be proud of yourself. Slipperysnake that made me smile

[TotalMoron]

I should feel guilty though, 26k & i've had one holiday in the past 10 years, the same car for 8 years & a tv that cost me £450 4 years ago. That's it. I don't even think i've bought an item of clothing for almost a year. I just wonder where the hell it's all gone, i certainly have nothing to show for it apart from a doormat full of high figures & a bank account with minus ones.

I consider myself to be fairly switched on, so how could i let myself sink this deep?
Told a close friend about it as she knew something was up with me & she was great, so it's nice that i don't have to keep it all to myself anymore, it's been completely eating me up for such a long time.

Still totally bricking it mind, i don't think i'll calm down until it finally starts properly. This is just the first step on a long & hopefully smooth road.

[Shining]

It is the first step admittedly. Don't feel guilty I've nothing to show either. My hubby's job changed as well as his salary being reduced but we carried on with our previous lifestyle. Crazy every month thinking we were still financially in the same boat as before.

x

[TotalMoron]

My salary has dropped in the past 3 years by a few grand because overtime & premium rate pay are now blocked & we've not had a rise in 2 years. My last rise was a derisory & virtually unnoticable 1%. My outgoings have shot up, interest rates on my cards have risen fairly dramatically & i've ended up using a credit card as though it was a debit card to get through the month.

I just wish i'd done this sooner, when a DMP would have been the best option, instead of burying my head & telling myself that debt was normal, everyone has it. I'll pay it off when things get better... Silly, silly man.

[Gina.gu]

I have nothing either. As lesley says don't feel guilty. Look to the future. You will be ok.

[Slipperysnake]

stop looking back you cant change the past its gone You have made a start now and thats all that matters ok People will think the same as you and why did I do that or buy that Nobody is perfect Just put it down to experience you have learnt a lesson dont beat yourself up with it or it will get you down ok Chin up from now I told my friend at work and he gave me the extra push to go through with this and get some advice I was doing that anyway and over the last few years he says well at least you will be out free and debt clear Thousands are in the same boat as you but dont realise it and others are going to continue struggling along You dont have a mortgage for example or kids Imagine having that to deal with In everything in life there is a negative and a positive side no matter the subject
In your case you have realised the problem now you are dealing with it ( positive )
and you are annoyed with yourself for not doing something about ir sooner ( negative )
look at the positive in every situation and you will be fine
As I wrote above once your IVA says they will go ahead and I cant see why not then you really have nothing to fear Yeah I know people who are saying that are the ones who have gone through your present stage but its true
Thats why you have to be positive and get through it A guy I spoke to at my IVA company when I was in your shoes I was worrying about things and he just says well if its not accepted they cant shoot you dont worry he says if we cant sort the IVA we will do something else
Theres always options and what you have to do when you choose your IVA Company is Trust them they are the professionals they know what works and how to get a result If they dont there compamy loses out on a customer and the more they can through the better it is for them
Dont worry about the legal side thats there area of expertise be guided by them and you will be fine

Thats what I was saying that its the same as a 5 year bank loan but you have the legality of the IVA to adhere to and you are making a commitment and you need to be pretty determined to get to the end and make sacrifices its not an easy way out In 5 years things can change for you jobs are not secure you will want to do things but cant because your money is still going to be tight But you have to tell yourself you got yourself in this mess and you will get yourself out Theres no magic wand or quick fix Apart from the lottery of course !
So give some thought to how you will manage and prepare yourself for the '' journey '' ahead Again think positive you may get a better job and more salary therefore you can pay things off quicker Your life just doesnt grind to a halt There are thousands worse off than you Life throws things at you and how its you deal with them that will make you a better and stronger person in the end
I know how you are feeling same as a lot will say the same thing and trust me in a few months you will be posting in here advising others and giving them a pep talk That feeling will not leave you for a very long time and its all part of the process of dealing with your situation and its you and you alone that has to come to terms with it and that you will do in your own time,
dont worry ok !

[TotalMoron]

You're absolutely right of course. It's pointless to look back, & i've now gotta start learning my lesson. If i don't have it, i can't spend it & not having the option of credit anymore means every penny needs to count.

Just got a txt asking me if i'm up for a stag do next May, £300! Amazing timing!

[Slipperysnake]

see every cloud has a silver lining saved £300 already

Dont worry matey you will take time to adjust and with me I was always looking at things gadgets new cameras laptops checking youtube Im having that and that and that then I just stopped then you take a step back and you see everybody else doing the same thing Ohhhh new iphone4 I want ir now iphone 5 I want that I need it !!!! a £500 piece of plastic basically So thats what the IVA does to you overtime it shows you the errors of your ways and gives you a good slapping when you need it you start to appreciate the value of money more and also a comment I read on here that its showing that you can save and plan ahead and deal with money which is what your creditors want to see
My best mate told me straight at the time he just said you cant handle credit not sarkey not judgemental just the truth
OK I am near the end and I will get a card again at a later date BUT I will make damn sure that the limits set at £1000 and never to be raised and make sure I clear what I borrow on it I need a card for travel and the insurance when I am out the country the same as everybody else nothing more than that

I am never going down that route of raising the limits and getting balance transgers again

awhile off yet though but keep thinking ahead ok

[TotalMoron]

Having sat & thought it through with a bit more of a clear head, i'm starting to view BR as a viable option. The thought of committing to 5 years in the same position, at my age has left me with a few doubts. It seems that i really have little to lose.

Does anyone have experience of BR? Are the expenditures similar?

[KM1512]

Good TM with your decision you should speak to a few companies to view your options and what ever your decision it will be a better future than constant worry of bills coming though the letter box good luck

[MelanieGiles]

One thing I always counsel my clients to do is not dwell too much on the historical reasons for and causes of the debts - at this stage the feelings of guilt need to be set aside and tbe right decision made for the future. It may well be that an IVA is the option you choose, but do make sure that the repayments you agree to make are affordable and sustainable in the long term and not just as a quyick fix.

Good luck in your search for the right professional to represent you.