Debt

[jackthelad]

Hit a bit of a brick wall and got some silly debts from when I first turned 18 mainly. Probably about 4k there or there abouts all tallied up to different companies pay day loans etc.

Decided its time to sort it now and wondering if anybody has any advice of best way to go about it,  iva? Debt relief order? Etc or anything else.

I know it screws you for a number of years but would it mean once paid off that in six years time I start with a fresh slate?

In the meantime I could be saving a substantial amount and hopefully buy a house in 5 or 6 years once its cleared?

Just looking for some advice really as its quite stressful and ideally want to get on the property ladder whilst I'm young.

[idler]

I think that the best way is to contact the companies and offer something even if it isn't too muck. Work out which ones charge the highest interest and get shut of those first.
Citizens Advice might be able to help you too.
I'm sure that as you tick these companies off it will be a load off your mind.

[roversdude]

I believe if you contact them you can get interest frozen and negotiate an affordable repayment
Lots of advice from these guys https://m.stepchange.org/

[knockers]

Bank loan to pay the lot off. Then you only have one low interest payment.

[jackthelad]

Bank loan to pay the lot off. Then you only have one low interest payment.

My credit is too poor to get a bank loan.

Has anybody had any luck getting a mortgage after iva or dro?
It does worry me about how I will ever improve my credit all through being a bit naive and daft when younger.

[SydneyRover]

I agree with the advice already given, here is some help contact info that may be of use from Donny council's website:

Money Advice Service

Set up by the Government, they offer free impartial money advice over the phone and online.

Tel: 0800 138 7777

www.moneyadviceservice.org.uk
National Debt Line

An independent charity offering free, impartial and confidential debt advice.

Tel: 0808 808 4000

www.nationaldebtline.org
StepChange Debt Charity

Offering free debt advice to help you deal with your debts and find a solution.

Tel: 0800 138 1111

www.stepchange.org
Last updated: 20 June 2018 10:14:25
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[idler]

Bank loan to pay the lot off. Then you only have one low interest payment.

My credit is too poor to get a bank loan.

Has anybody had any luck getting a mortgage after iva or dro?
It does worry me about how I will ever improve my credit all through being a bit naive and daft when younger.

Have you looked on Martin Lewis's site, MSE?
He give all sorts of free financial advice. Try to make a dent in your debt asap though so at least you are showing willing. Every bit counts.

[RedJ]

Debt management plan. Not an IVA, will still f**k your credit a bit but nowhere near as bad as an IVA. It's basically the same thing but it's an informal agreement. I was in a similar situation at one point, have a look at PayPlan who helped me.

[tommy toes]

As regards a mortgage you will be able to get one a few years after your debts have been cleared.
A woman I used to work with went bankrupt about 8 years ago after her husband died and left a mountain of debt that she didn't know about.
She got a mortgage last year.

[Prez]

Debt management plan. Not an IVA, will still f**k your credit a bit but nowhere near as bad as an IVA. It's basically the same thing but it's an informal agreement. I was in a similar situation at one point, have a look at PayPlan who helped me.

Yep Payplan helped me too years ago, they were brilliant. Consolidated all my debts. Now i own my own house. Quite a turnaround.

[Filo]

Do what I did, get your head down, pay off your debts and come out of the other side, its not easy, but it can be done with a little self control

[GazLaz]

Get in touch with each company individually and explain the situation. You will be surprised how willing to help they are.

[RedJ]

Do what I did, get your head down, pay off your debts and come out of the other side, its not easy, but it can be done with a little self control

Debt management plans are designed for you to pay them all off, just over a longer period at a lower rate, and most if not all of your creditors will freeze interest and charges unless you fail to meet the payments. They're also built to your budget.

[jackthelad]

Cheers guys.

Been seeking advice today, got around 8.5k debt so looking into a potential iva.

£85 a month for 5 years, in 6 years it will be off my file completely and can hopefully start my credit again. At the moment it's atrocious.

All this whilst knowing it will eventually be paid off and I can save money each month for the next six years to hopefully have a hefty deposit of 30k ish by the time it's off my credit file.

That's the goal.

[idler]

Stay positive Jack. Just monitor it all the time and keep up to it and remember any sacrifices that you have to make will be worth it in the end.

[knockers]

Your debt has doubled in two days

[jackthelad]

Your debt has doubled in two days

More than I thought. Oh well, it's more common than you would think.

The problem is its too easy to get credit at such a young age. Not enough education on it either.

If there's one thing that I hope to be able to be teach my son when he's older. It's how to be financially responsible.

[GazLaz]

Cheers guys.

Been seeking advice today, got around 8.5k debt so looking into a potential iva.

£85 a month for 5 years, in 6 years it will be off my file completely and can hopefully start my credit again. At the moment it's atrocious.

All this whilst knowing it will eventually be paid off and I can save money each month for the next six years to hopefully have a hefty deposit of 30k ish by the time it's off my credit file.

That's the goal.

I don’t know how much you earn obviously but £85 a month seems low.

[drfchound]

Cheers guys.

Been seeking advice today, got around 8.5k debt so looking into a potential iva.

£85 a month for 5 years, in 6 years it will be off my file completely and can hopefully start my credit again. At the moment it's atrocious.

All this whilst knowing it will eventually be paid off and I can save money each month for the next six years to hopefully have a hefty deposit of 30k ish by the time it's off my credit file.

That's the goal.

I don’t know how much you earn obviously but £85 a month seems low.

I think he is going to tell you.

[5minstogo]

Cheers guys.

Been seeking advice today, got around 8.5k debt so looking into a potential iva.

£85 a month for 5 years, in 6 years it will be off my file completely and can hopefully start my credit again. At the moment it's atrocious.

All this whilst knowing it will eventually be paid off and I can save money each month for the next six years to hopefully have a hefty deposit of 30k ish by the time it's off my credit file.

That's the goal.

Probably an unpopular post but....... Pay £85 a month for 5 years, pay off approx two thirds of your debt with a third being written off but in the mean time save up 30k? Personally I'd rather pay off my debts in full no matter how long iit takes.

[Filo]

Cheers guys.

Been seeking advice today, got around 8.5k debt so looking into a potential iva.

£85 a month for 5 years, in 6 years it will be off my file completely and can hopefully start my credit again. At the moment it's atrocious.

All this whilst knowing it will eventually be paid off and I can save money each month for the next six years to hopefully have a hefty deposit of 30k ish by the time it's off my credit file.

That's the goal.

Probably an unpopular post but....... Pay £85 a month for 5 years, pay off approx two thirds of your debt with a third being written off but in the mean time save up 30k? Personally I'd rather pay off my debts in full no matter how long iit takes.

It’s not unpopular to me, if you can save £30k in that time, you can pay off the debts, £30k over 5 years is £500 a month

[GazLaz]

If you’ve taken our an IVA and it’s that cheap, but you can also save 30k in that period of time I’d suggest you’ve lied about your income and expenditure to whoever you’ve made the agreement with. They would surely want more if they knew you could save that.

[jackthelad]

Nope, impossible to lie and they ask for wage slips.

He told me before we'd even discussed figures that they always try and get it down to the lowest payment which is £85.00, he then said he's very confident thats what it will be purely down to how low my debts are. I don't see 8.5k asow but apparently generally people owe much more. Quite scary really.

To me it isn't about having any debt written off, it's about having a deadline in place and a one off payment all consolidated into one.  It's about KNOWING in six years time it will be a fresh start atleast.
I have tried previously to do self agreements and I just don't stick to them or fall behind on payments etc.

It isn't a easy decision and the IVA is yet to be approved although he said the signs are good that it should be.  It affects me massively for the next six years although at the moment it's not as if I would be able to get any form of credit anyway so either way it would be a waiting game.

[GazLaz]

I’m sure paying the £85+ the £500 you intend to save towards the debt for a year would be the best thing to do. Then you can carry on saving the £585 towards your house after that. Debt paid of earlier do it has time to come off your credit file and you still end up with your £30k. Do it that way.

[jackthelad]

I’m sure paying the £85+ the £500 you intend to save towards the debt for a year would be the best thing to do. Then you can carry on saving the £585 towards your house after that. Debt paid of earlier do it has time to come off your credit file and you still end up with your £30k. Do it that way.

I have tried many times and it's too much messing about different direct debits coming out, constant hassle of letters etc.
All consolidated into one payment is better for me and often is others also.

Thanks for the comments.

[GazLaz]

I’m sure paying the £85+ the £500 you intend to save towards the debt for a year would be the best thing to do. Then you can carry on saving the £585 towards your house after that. Debt paid of earlier do it has time to come off your credit file and you still end up with your £30k. Do it that way.

I have tried many times and it's too much messing about different direct debits coming out, constant hassle of letters etc.
All consolidated into one payment is better for me and often is others also.

Thanks for the comments.

Over pay the IVA I was meaning as opposed to paying separately. I’m sure they allow that sort of thing. Maybe not.

It’s great that you are thinking about paying off the debt and getting straightened out but I’m speaking from experience when I say that reading between the lines in your posts you need to change your mind set towards paying it off or you are likely to fall into the trap again.

Good luck with it all, there will be no more input from me! 

[RobTheRover]

Yeah, good luck, Jack. 

[drfchound]

Cheers guys.

Been seeking advice today, got around 8.5k debt so looking into a potential iva.

£85 a month for 5 years, in 6 years it will be off my file completely and can hopefully start my credit again. At the moment it's atrocious.

All this whilst knowing it will eventually be paid off and I can save money each month for the next six years to hopefully have a hefty deposit of 30k ish by the time it's off my credit file.

That's the goal.

Probably an unpopular post but....... Pay £85 a month for 5 years, pay off approx two thirds of your debt with a third being written off but in the mean time save up 30k? Personally I'd rather pay off my debts in full no matter how long iit takes.

It’s not unpopular to me, if you can save £30k in that time, you can pay off the debts, £30k over 5 years is £500 a month

Not unpopular with me either.
I have been on the other (not been paid) end of stuff like this over the years.
No one seems to care about Companies not getting full payment and the non payer more often than not seems to come up smelling of roses.

Sorry Jack, not aiming this at you personally but giving another point of view.

[drfcsteve]

I am surprised that no one has mentioned interest free balance transfers, although appreciate this may not be an option for those with bad credit. There are sites now where you can check which deals you are eligible for without having to do a credit check, Martin Lewis' site is one of them. Transfer all your high interest debt to interest free and make sure you pay it off in the interest free period (or transfer it another interest free offer before your offer ends).

This is what I did with all my wife's store cards, credit cards etc. Transferred them all to one card, interest free for 26 months. You're actually paying off the debt then, not the 24% interest or whatever it is. Plus you have the flexibility to pay a bit more off or pay it off sooner if you fancy.

The key of course is having the discipline to make sure you only use the card for paying off debt and do not spend on it under any circumstances.

[RedJ]

Nope, impossible to lie and they ask for wage slips.

He told me before we'd even discussed figures that they always try and get it down to the lowest payment which is £85.00, he then said he's very confident thats what it will be purely down to how low my debts are. I don't see 8.5k asow but apparently generally people owe much more. Quite scary really.

To me it isn't about having any debt written off, it's about having a deadline in place and a one off payment all consolidated into one.  It's about KNOWING in six years time it will be a fresh start atleast.
I have tried previously to do self agreements and I just don't stick to them or fall behind on payments etc.

It isn't a easy decision and the IVA is yet to be approved although he said the signs are good that it should be.  It affects me massively for the next six years although at the moment it's not as if I would be able to get any form of credit anyway so either way it would be a waiting game.

Still personally would have gone with a DMP. The organisation that you'd have done it through sets up a direct debit and you pay into it the same way you would have done an IVA but not as negative an impact and you do still have that final payment down the line that clears it all.

Hope it turns out to be the right decision though, I know what a nightmare it can be when you dig yourself a massive hole of debt.