Just discovered my sister has an enormous unpayable debt

[cockles]

Around £75,000, from credit cards from 10 years ago. She is paying in large monthly sums via a 'debt management' agency, have no idea who. She is totally unrealistic and thinks she can pay it off - she is currently earning £20,000 when working. She has no dependents at least, in fact I now think she is my dependent.Does anyone have any idea what advice I can offer /where to send her, apart from CAB which I have just suggested? Should she just go bankrupt? Have no idea what the implications of that are - can you still work? Sorry, this is a huge question, I am really overwhelmed.

Ugh, she will never pay it off!
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DMC's are scum in my opinion (worse than me).
They will be taking a hefty proportion of the payment as a 'fee' for doing what either your sister or CAB will do for free.
If she can't pay it off realisticaly in the next year or 2. her best option is going bankrupt.
It does not have the same stigma attached to it as years ago and you can be discharged in under 12 months if you play ball.

An IVA is an option, but make sure she talks to her local CAB, not one of the agencies trying to convince her to take an IVA - they will try to persuade her to have one, whereas the CAB will go through whether it is the best option.

It's also worth sitting down and going through ALL the numbers - you may find she is actually able to pay off the debt on her current repayment system if she really goes for it - people have mortgages that are bigger... She may have to just accept that she isn't going to be able to spend for a while! Also, if she can make overpayments, find out if there is any kind of penalty for doing this, and if there is, talk to CAB about whether she was aware of this when she signed up (if she wasn't, you may be able to transfer the debt to somewhere that doesn't have that kind of penalty, in case her earnings go up).

My ex-p went bankrupt recetnly. He spoke to the CAB who put him in touch with CCCS. They went through all the paperwork with him, and made a forecast that based on his current earnings, and minimum necessary expenditure, it would take him 30 odd years to clear his debts (and this would only be possible if his creditors agreed to freeze interest and fees on his accounts - most wouldn't). Their advice was to to go bankrupt.

Has your sister considered this?

Thanks so much everyone - that is all really helpful. She has only just admitted this and now my first thing is to get her to go to CAB and CCS - she has no assets no mortgage nothing, so I reckon bankruptcy or IVA. God I can't believe how banks can let this happen!

good god. It really is debt slavery isn't it.

I hate to sound judgmental and I know you are shocked at what you have just been told. However, it is an individuals responsibility to manage their own debt, it is not down to the banks. She could have been robbing Peter to pay Paul and using different credit providers.

I too would also suggest that your sister opts for bankruptcy.

IVA or bankruptcy. i have done both. any questions please ask. look here for IVA info hth