Author Topic: Feeling Sick with Debt  (Read 857 times)


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Feeling Sick with Debt
« on: Nov 18, 2010, 08:05:26 AM »
Hi All.

To keep it simple.

I run a driving school business (in profit by £600 p/m) and a taxi company (in profit by £1200 p/m)
Both under the VAT threshold. I dont owe any NI or Tax.

But to get the Taxi business up and running i borrowed unsecure loans, and c/cards now paying out £1500 p/m plus i have my mortgage and other outgoings of approx £1000.

This leaves me £700 negative a month.

Ive been making payments by scraping money from everywhere/anywhere.

But i can no longer fund it.

Im thinking of writing to my creditors to reduce amounts (do i need debt management company to do this)
Do i need to go into arreers before they do anything for me?


James Falla

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Re: Feeling Sick with Debt
« Reply #1 on: Nov 19, 2010, 12:02:32 PM »
Hi there Craig
Sorry to hear about your position. There are a couple of solutions which you should consider. The first is a debt management plan (DMP) and the second is an IVA (individual voluntary arrangement). A DMP will simply reduce the amount you pay to your creditors each month to a sum which you can afford. This gets you back in control but you still have to pay back all of you debt which could take a long time.
If you owe more than £18k, the preferred solution to consider is often IVA This is an agreement to settle your debt over a five year period. You pay as much as you can for five years and then anything outstanding is written off. Clearly an IVA has considerable advantages over a DMP but there are also various considerations. For example, you may also have to release equity from your property to increase the return to your creditors.
You do not have to be in arrears with any of your accounts to start either of these two options. You can start them as soon as you know you have a problem. A DMP you can do yourself or use a third party to help you but with an IVA, you have to get expert help.
My suggestion is that you should have a chat with a debt advisor who can explain all of the options to you, the pros, cons and costs so you can work out the best way forward for you. By all means ask more questions on the forum.
Debt Expert & Author