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Hi, I owe around £25k (Not sure exactly how much as yet, am gathering this info) I take home approx £1650pm and pay about £850pm between about 8 different loan/c cards. Although i am not behind with any of the payments as yet on any of my debts I am getting deeper into an overdraft each month as my outgoings are more than my incomings, I rent a flat (Unfunished) and live with my partner and two children.
I just want to pay one affordable amount each month to clear my debts and get rid of my credit cards and leave enougth for me to comfortably support my family and put away a small amount each month for my children is an IVA my best solution before things get any more out of control or can you recommend some sort of consilidation loan over a longer period? I pay only the minimum amount on my cards and my loans have between two to six years left to completeion so i can only see things getting worse in the future. Your advice on my best solution would be greatly appriciated, If i could clear my overdraft, get rid of all my cards etc and lower my monthly payments by 50% or more, this would help me and my family immensly. Regards

Hi ba and a warm welcome to the forum

I would think that an IVA is definately one solution for you, as is bankruptcyor a debt management programme. Do you own your own home or are you renting?

Assuming that you have a desire to repay your creditors as much as possible, which seems evident from your post, the advantage of an IVA over a debt management programme is that there is a specific end point - ie after five years, interest cannot be legally charged throughout that period and your creditors cannot commence any legal or other actions against you.

I suggest that you take specific advice from an insolvency practitioner with regard to your options, before making a final decision.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Advantages of an IVA:
Single affordable monthly payment.
Fixed repayment period (normally no more than 60 mths) with a specific end date giving Light at the End of the Tunne.
Creditors must freeze all further interest and charges.
Once the final payment is made, any outstanding debt is legally written off by the Creditors.
Creditors are legally bound to the agreement. They can not go back on the agreement and demand increased payments.
Creditors are legally bound to the agreement. They can not go back on the agreement and demand increased payments.
Current and Future CCJ’s overturned.
Protection from court action by creditors.
The IVA is discreet and can be used by professionals, forces personnel and the police without damaging career prospects.

Disadvantages of an IVA
Although the advantages of an IVA are significant, undertaking an IVA is a serious matter. As such, there are some things that you must bear in mind.
The IVA will be recorded on your credit file. This means that you will not be able to take further unsecured borrowing for the period of the IVA.
Once the IVA is completed (normally after 5 years), you can borrow again. However, it may take some time for your credit rating to repair.




Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp