Would an IVA work for me as i cant get a loan?

[rachel.d8]

I have about £17000 of debt with various creditors. If i paid it all off i would have a disposable income of about £1400 (payment to be taken from this) Because of past issues i have a terrible, very bad credit rating. All i want to do is lower payments and make life more comfortable. I odn not own a home. ALthough on paper i am a 'sound investment' banks wont seem to touch me because of previous problems. Would an IVA work for me as i cant get a loan?

[Jo Rolland]

Have you calculated what your surplus income is just now, prior to payments to your creditors?

[rachel.d8]

that is my income prior to deducting creditors payments. At present i am paying out around £700 to creditors but i know a loan could greatly help these payments reduce. I especially am interested as i wont to buy a house but at prsent think there is no chance!!!

[Jo Rolland]

Sorry, so your monthly surplus income after paying your normal living expenditure is £1400, you then pay £700 to creditors?

[Jo Rolland]

If your surplus income is indeed £1400 per month prior to paying creditors, an IVA is most certainly not for you as you could effectively pay off all your existing debt in 12 months.

I would certainly not advise that you take a loan to repay this debt.