Topic: Advice wanted on 50k of unsecured debt

[Bumble]

Hi,
 
Please can you offer advice/options to help clear my debt.
 
I currently owe the following;
 
25k - Unsecured personal loan
23k - Credit Cards
3k - Overdraft
 
I take home around 2k per month and my outgoings for rent and bills is £800, i am currently paying £600 per month against the personal loan and the minimum on the credit cards which equates to around £400.
 
What options do i have to help manage this increasing problem?
 
Any advice will be greatly received.
 
Bumble
 
 
 
 
 

[James Falla]

Hi there Bumble
 
Generally speaking, if you owe more than £15,000 the first solution to consider is an individual voluntary arrangement (IVA). This solution would allow you to reduce your monthly payments to your unsecured creditors down to perhaps as little as £350 a month depending on ehat you can reasonably afford. The arrangement lasts for 5 years after which time any unpaid debt is written off.
 
Are you a home owner with equity in your property? If so an IVA will protect your home from creditors trying to issue charging orders against you. However, you may also have to agree to release some equity as part of the IVA agreement if possible.
 

[Bumble]

Thanks for your response.
 
I am not a home owner, i rent in shared acccomodation.
 
Who can i contact to talk through the possibility of an IVA? This sounds like a positive step as at least i can see some 'light at the end of the tunnel'

[James Falla]

Hi Bumble
 
Given you are renting, the IVA would certainly be a good option for you to consider.

[James Falla]

Hi there Bumble, did you manage to speak to someone about the possibility of an IVA? I am hapy to have a chat to you about it if need be. Good luck and let us know if you need any more help

[Bumble]

Thanks James,
 
Who do i need to see regarding the possibility of an IVA?

[James Falla]

Hi there Bumble. If you want to carry out an IVA, you will need to use an insolvency practitioner. This is a special type of accountant who is licensed to propose IVAs. The normal way of doing this is to first speak to a personal debt advisor such as myself.

[solvemybadcredit]

Debt management companies can arrange IVA for you as many of them apply proper solicitors and trained experts. Good luck with it and let us know how you're getting on. You can find a couple of reviews of UK debt management companies on my blog.

[James Falla]

As I mentioned in my previous post, to carry out an IVA you will need a special type of accountant known as an Insolvency Practitioner (this is not a solicitor). However, it is generally best to discuss your situation with a debt expert first as they will be able to explain all of your options and advise whether an IVA is indeed the right option for you.

[Bumble]

Hi James,
 
How do i make contact with you to discuss my sitation?
 
Thanks
 
Bumble
 

[James Falla]

Hi there Bumble. I can be reached [** sorry, no personal contact invitations allowed **]. Just follow the link in my signature and call the main beat my debt number and ask for me. I look forward to speaking to you.

[James Falla]

Just thought bumble. You can also [** sorry, no personal contact invitations allowed **] by sending me a personal message through this forum. Just search for my name on the members list. If you click on me, the option to send a personal message is on the left hand menu.