Author Topic: I can't pay my bills and eat this month, canceling and moving forward?  (Read 1934 times)

blackrain

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  • Posts: 1
I have a loan with £19K (lloyds TSB) & 3 credit cards with £11k (lloyds, Barclaycard, Egg).

I have £30k of overall debt and monthly payments of over £850.

I can't keep these up and need to cancel the payments tomorrow.

I can pay around £150 split up between them all a month, what is best to move forward, any advice would be a real help, I can't sleep at the moment.

smallville

  • Jr. Member
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  • Posts: 15
Hi There,
In this situation I would look into an IVA or Bankruptcy if you have no assets.
If you want to pay it back an IVA will reduce your debt and monthly payments drastically.
The CCCS http://www.cccs.co.uk/ can always help you come up with a budget plan showing what you can afford so you can approach your creditors with a plan for repayments and you can see how much you really can afford.
They can advise on IVA arrangements and do this for you if needs be.

Hope this helps.

 

Debtwitch

  • Full Member
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  • Posts: 38
With only £150 to offer monthly, you may find it a struggle to propose an IVA, but it may be that budgeting may allow you to offer more.

You need to speak to an expert to discuss your personal circumstances and how you would ideally wish to deal with the debt.  Debt Management can help if you think this is a temporary situation but would take in excess of 16 years to repay as a solution.  IVA means that you're generally looking at a period of 5 years paying over your surplus income, but at least you can see light at the end of the tunnel.  Bankruptcy enables you to free yourself from these obligations almost immediately.

All these options impact on your credit file and will affect your lifestyle, but you need to speak to someone in some detail to understand the procedures and how they will affect you and if you have the option to choose, which is your preferred option.

You've already started the process by taking stock of your situation and just need to progress now to deal with the matter to move on and concentrate on more important things than worrying about debt. 

Try to deal with the debt but you don't need to do this on your own.  If you need some support, your GP will be able to help you in the right direction.

Please don't let this affect your health - losing sleep will affect your concentration and lead to all sorts of things. 

Very best of luck.
Angela Rosler
Insolvency Manager  e: [email protected]