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IVA's?

(2 Posts)
Bubblegum89 Sat 06-Feb-16 08:33:30

I'm stupidly in a fair amount of debt (about £11k) with catalogues, credit cards, loans and my overdraft, dating back to when I was a single mum with no job. This year however, all of my minimum payments seen to have gone up drastically yet, of course, the interest is so high that I'm not making any dent in the actual debt itself. I genuinely cannot afford it anymore. Just in debt repayments alone, I'm being expected to pay out £500+ a month when I don't even earn that much a month (I'm part time at a school so wages are spread out over the year to cover school holidays)

What I wanted to do was get a consolidation loan, pay off all my debt and close my accounts so I could start rebuilding my horrendous credit rating. However because of the bad credit, I can't get a loan from anywhere. It was suggested to me that I get a debt relief order but you have to have £50 or less month left over after expenditures and I have just a little over that. Someone else advised me to wait until the debts were passed on to a collection agency but I'd rather that not be the case. I have attempted to talk to various creditors to ask to have my monthly payments reduced or interest frozen but I only managed to make an arrangement with one of them.

A friend of mine told me she had got an IVA and she highly recommended it but I've read since that they're not the best idea. I'm worried about having something like that on my credit file but at the same time, my credit rating is going to be bad anyway because I can't make the minimum payments on my accounts.

Has anyone had an IVA before? If so would you recommend it if a DRO or consolidation loan isn't an option? I'm losing so much sleep over money issues and just want to try and sort them any way I can sad

Rockchick1984 Sat 06-Feb-16 12:37:10

Speak to Stepchange or one of the other free debt advice charities, they are brilliant and will advise you based on your circumstances. Good luck, it's not easy to admit to debt becoming unmanageable but once it's sorted it will be like a weight off your shoulders flowers

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