Hi all
           I need some advice regarding my debts, am about to approach a debt managing company
           and do an I V A  so they approach my creditors and try and make a voluntary payment
           to them as these schemes run for 5yrs and they say 75% of debt is normally written off.
           The debt company stop creditors from hassling you as i want to do this the right way
           with a proper company.
           This is a very very bad time for me and i truly regret  getting caught up in the credit card trap years ago.
           Have any of you got any advice on this matter ? or have been in similar circumstances  and managed
           to make a fresh start.
           My problem is around 25 k all added together.
           I know i will not get credit again but its a road i would never go down again and that's the honest truth.
           Please help  X
           

 Thanks Soph
                             I was thinking to try CAB am i right in thinking they have legal people who work voluntary
                             for them. x

Hi

I'd recommend Martin Lewis's website - http://www.moneysavingexpert.com/
His guide to IVAs is here - http://images2.moneysavingexpert.com/attachment/ivaGuide.pdf

He's the man on tv who talks very fast about money matters and debt and his website is fantastic. IVAs can be good in certain circumstances but they arent good for everyone so read his advice before you commit. The people who arrange IVAs get paid commission if you sign up so they wont give you impartial advice...

The website also has a forum where you can discuss debt with other people who have been in darker places with you and managed to find a way to come back so dont feel bad, or guilty. Just take a deep breath and you CAN sort this out!

Good luck
R XX

DO NOT PAY!!!!

call these guys

http://www.cccs.co.uk/?gclid=CL2UoP6c46sCFQULfAodfx8FSA

They're sooo helpful and it's all free.  I'm paying all my creditors off at between ?1 and ?10 a month now and all interest stopped. It will take me more than my life to pay them off at this rate, but at least they're off my back. I'm thinking of declaring myself bankrupt actually...but for now I'm just coping doing this.

Good luck. Please phone these people...you'll be on the phone for an hour and need all your bills/debts to hand, but after you've spoken to them you will feel like a lead weight has been lifted off your shoulders and very soon your (personal) phone will stop ringing!!!

The best thing is that you have had your lightbulb moment as many call it  -    you know your in debt and your dealing with it and not carrying on spending   Please and i cant say this enough dont whatever you think of pay a single penny to anyone  with regards to helping you  paying of your debt  you will end up in even more debt  as they take a percentage of what you pay as there fees so not reducing the debt

one  little piece of advice if you dont listen/read  anything else what weve said then listen/read  this    

 ANY COMPANY THAT WANTS MONEY FOR WRITING OF YOUR DEBT IS CONNING YOU  IT WONT WORK AND YOU WONT GET 75 PERCENT WRITTEN OFf  YOU WILL HAVE PAID THEM MONEY FOR NOTHING  THERE WILL ALWAYS BE ONE OR MORE  CREDIDTOR THAT WONT AGREE  YOU CAN DO IT YOURSELF FOR NOTHING      
 
  
Make sure you know the differene between and iva dmp and bankrupcty as well  5 years is a long time to  be skint http://iva.co.uk/guide_pros_and_cons.asp
http://www.cccs.co.uk/InfoCentre/EnglandandWales/Debtsolutions/Debtmanagementplan.aspx
http://www.bankruptcy-insolvency.co.uk/
 
 Also make sure that the iva or dmp  is realistic and that you can afford it otherwise the next step is bankrupcty which to be honest depending on your situation and the amount of debt you have isnt always a bad thing as you get a clean slate you can start again in six years time and unless it relelvant to your profession ie banking and a few others its not generally a problem,   I remember you said you were a homeowner  and what stops most homeowner of going bankrupt is the fear of loosing there home  however  If  you go bankrupt and your house is in negative equity it dosnt mean you will lose your house either  you can often hold on to it and as long as it dosnet rise in price within three years of the bankrupcy then it wont be taken  So dont be afraid to  look into the bankruptcy option
        
Be realistic on what you can affo rd to pay and be honest as well, there is no point in agreeing to pay xxxx when you can only afford xx and ending up in more debt
   just remember -  you wont go to jail for not paying for your jimmy choos and gucci handbag that you bought on your c credit card ,  debt is civil not criminal act  (apart from council tax  but there always one   )     no one is going to put you up against a wall and shoot you cos your in debt ,
if that was the case the whole country would be in prison, or getting shot, as were all in bloody debt one way or another
but the debt collecting companies would like you to believe that you wont go to heaven, that the  baliiff will be around in 5 mins and the end of the world is tomorrow in fact anything to get that money off you


other thing that might help you  -  if its been  been more than 6 years sinced you made a payment/or aknowlegment of the debt,   then make sure its not statute barred     ie after six years from the date of the last payment then can not get any money of you as the debt is statute barred ( unless its been ccj and im not 100 percent that even with a ccj thats the case)  if its statue barred you can tell them to  get lost and smile when you say it    
The only debt that can be pursued after 6 years of the last payment or aknowlegment is a mortgage shortfalll which can be pursued for 12 years  
  
   This is why they are so desperate to get you to agree to even a pound a week as a token payment  as its keeps the clocks ticking for them so that they can always have the right to pursue you forever every payment that is made keep you under the six year period of statute barred debts  
      If the debt company is ringing you and hasseling  you  change your number ,  or dont anwser,  or  anwser when it convenient to you  dont let them bully you  into paying,  You dont have to speak to them if you dont want to  
 
   Baliffs cant just enter your house you have to let them in  often they say they want to check or just come in
tell them to f.... off  Or dont anwser the door
 
Get over to martins money forums on the debt free wanabee and start to learn your rights  You have plenty of them  but please please dont pay a company to manage your debts for you  it will only make it worse  and you will be back on here in six months time saying that you owe 30k not 25 k
 

 Hi all
           I need some advice regarding my debts, am about to approach a debt managing company
           and do an I V A  so they approach my creditors and try and make a voluntary payment
           to them as these schemes run for 5yrs and they say 75% of debt is normally written off.
           The debt company stop creditors from hassling you as i want to do this the right way
           with a proper company.
           This is a very very bad time for me and i truly regret  getting caught up in the credit card trap years ago.
           Have any of you got any advice on this matter ? or have been in similar circumstances  and managed
           to make a fresh start.
           My problem is around 25 k all added together.
           I know i will not get credit again but its a road i would never go down again and that's the honest truth.
           Please help  X
           

if you have any debts or standing orders that come out of a bank account that you use or you get your wages paid in to then cancel them  this way you can pay them at your own time ( they will send you a giro slip) that you can pay at the post office it might be a pound or two more but better than the 30 pounds  a day bank charges for going overdrawn 
   
just open up a basic bank account to gret your wages paid into  its really really important that you have your wages going into a clean bank account with link to your previous debts otherwise any bank charges and stuff will just get swallowed up leaving you with no money 

google basic bank account  you will get a bank account  with a cash card you cant go overdrawn so you can get your wages paid into it with no worries about it being eaten up by bank charges  you can do all this yourself 

barclay  do them so do lloyds tsb and santander  in fact most banks offer them and they are quick and easy to get 

from the martin lewis site there are and also consumer action site ( just google it) there are template letters that you can get which you just change the name and the debt to send of to the credidtors  but the citizens advice will be able to help you  with it as well
 
Dont be bullied by any of the credidtors either pay only what you can afford to   dont leave yourself totally skint that you get into more debt   its far better to pay a small amount and pay more than pay more and cant afford it each month if they ring you and you have to speak to them try to imagine them sat on the toilet having a number 2  works  wonders for me     
its not the end of the world honest  most of us have all been there in debt at one point or another     

on martins money forums search for the statement of affair link its a really good list of everything  that will help you account for all your outgoings and earnings  it would be usefull if you do this before you go to cab and print it out so that they can see exactly what you have and dont have and take along all the debt letters / creditors as well
the more you do before  your appointent the easier and quicker it will be for you

 

 Thanks Paris and Mel
                                              I have Not got in touch with any creditors yet so they don't know am about to fold
                                              financially as they will be biased towards me am sure. 
                                              Thought it best wait to visit the CAB Thursday and take advice and hopefully
                                               get the ball rolling.
                                               Yes i agree i will need a basic account for money to go in so will Google it as you
                                                advised.......xx 

 you can always get  pay as you go credit cards which are like a debit cards but you load money up on to them so that you can have a credit card but you cant get into debt with them as you can only spend what you have on them
 
Good luck and dont worry  its really not the end of the world honest,  its only money , and its not worth killing yourself over it or stressing , although its seems hard not to at the time,  once you make that initial step  you will be sleeping like a baby at night  and wonder what the fuss was all about 

 you will probably find that the ones that have the most extortinate interest rates will be the ones that scream the loudest  but let em scream  and dont feel guilty either about what your doing, make sure you get the interest on all the bills frozen as well so that you dont incurr any interest charges , cab will advise you on this

 its 25k which is 100 a week over five years roughly  but you will probably on a iva get that down to around 170 -200  a month  which is the minumum for a iva 

 It could be even less if you offer the miniumum amounts  but  be realistic  if its gonna take you 10 -15 years to pay it back at a fiver a week then to be blunt its better of to probably go bankrupt and get a clean slate within 3 years  providing you can keep your house of course
 10 -15 years of living hand to mouth is not good  5 years is managble 1o years is scary and 15 years is hell

 if you cant pay it then you cant pay it  they wont like it  but they should have been more responsible when lending you the money  i know that you have got to be responsible as well  but the banks are credit cards companies are just as responsible imo as you are and judges often see it that way as well 

   When i was in debt a very long time ago  and it was more than 25k as well i used to file the letters neatly (in the bin ) naughty yes  but i didnt see the point in reading them as i couldnt afford to pay them it would only piss me off and ruin the weekend   but i did have my lightbulb moment though

Dont you know thats why they send debt letters out second class on a thurs so that  it arrive on a saturday morning to ruin the weekend   

oh and if you want to buy a lipstick or a magazine or a cheap bottle of wine now and then  then do and dont feel guilty  it it wont make much difference to the 25k  owed  but it will make you feel a bit better thats it not all doom and gloom       

 Thanks Paris and Mel
                                              I have Not got in touch with any creditors yet so they don't know am about to fold
                                              financially as they will be biased towards me am sure. 
                                              Thought it best wait to visit the CAB Thursday and take advice and hopefully
                                               get the ball rolling.
                                               Yes i agree i will need a basic account for money to go in so will Google it as you
                                                advised.......xx