Help

[Yankeedoddle]

My wife and I are sinking further into debt, with credit cards as we just can't afford the monthly payments, we are constantly over drawn and the bank charges make it worse. Although the mortgage always gets paid I fear it won't in the coming months and everything I seem to do to dig us out of the hole we got ourselves in still fails.

We are homeowners with 3 young children. I'm out of ideas and am embarrased about the whole thing because I earn a good wage and have aleays tried to be careful, but things have just got out of hand. Want to do something now before we start getting letters and bayliffs at the door

Help

[Steve Jackson]

Hello Yankeedoodle and welcome to the forum

Sorry to hear about your situation. The first thing to say is you are not alone. There are very many people in similar positions and the good news is that there is always a solution. THe best way to deal with your debt problem will depend on your financial circumstances. The key areas to understand are:

1. Your disposable income: what you think you can actually afford to pay your creditors after all your reasonable living expenses (not including debt payments) are taken into account.

2. Your unsecured debts: how much you owe and to whom

3. Your property: How much is your property worth and what is the outstannding mortgage / secured loans on it

If you feel able to give a bit more information regarding the above, I am sure we will be able to help. In the mean time, why not have a read about the various debt solutions available. The Beat My Debt solution comparison table is a great place to start: http://www.beatmydebt.com/consumer-debt ... -table.htm

[Yankeedoddle]

Steve, I'll be in touch by email.

[Steve Jackson]

No problem Yankeedoodle

Email me or contact me through Beat My Debt anytime

[Geraldine]

Hello Yankeedoodle

Have you spoken to Steve at Beat My Debt about your problem. He is really excellent so if you have not already done so, my advice is pick up the phone as you will be in good hands.

Debt is never a nice thing to have to deal with especially if you have a family to worry about as well. Discuss your situation with an expert like Steve who will help you plan a solution.

There are never any magic wands but once you have got things back under control with an appropriate solution such as a debt management plan, IVA or even bankruptcy, it will be a huge weight off your shoulders.

Good luck. We will always be here to support you if you need it

[Yankeedoddle]

Thanks Geraldine, I took your advice and spoke to Steve and I think we have a plan of action, his advice was clear and simple and my wife and I now know where we are heading.

[Yankeedoddle]

Okay, my IVA is being organised, and Ive stopped paying all my creditors, changed my Bank accounts etc. Ive just received this months credit card statements and it shows I paid nothing last month, but the monthly payments have doubled becuase I failed to pay last month. What happens if my IVA does not get agreed, I will owe hundreds of pounds in back dated interest and charges from where I stopped the payments, but I will still not be able to pay off the oustanding payments or make any inroads into actually paying the debt off.

In theory this will mean I am more in debt than when I started the process!

[Steve Jackson]

Hi Yankeedoddle

You are having exactly the same concerns as everyone who goes through the IVA process. After you stop making your creditor payments, they add extra interest and late payment charges and your balances do go up.

The first thing to say is that your Insolvency Practitioner would not have taken on your case unless they were 99% sure of success. Otherwise (rather cold heartedly) it would simply be a waste of their time and money which they certainly do not want to waste.

If in the very rare circumstances your IVA does not get accepted, as you say, you are left with your debts which may well have grown. You would then normally start a debt management plan so there is always a solution available.

In terms of the balances having increased. At the end of the day, the reason you are doing an IVA is because you can not afford to pay your creditors. As such, you would have started to miss the payments regardless of having started the IVA process. As such, sooner or later you would be in a similar position and possibly even be putting your mortgage payments ar risk. Doing the IVA, you are in control.

Hang in there. It is always a rocky ride at this stage but once you IVA is in place, you will be in a much better position.