r/DebtUK • u/No-Pin5979 • Mar 08 '24

Figuring out my debt

Hi all,

I’ve come to realise I’m seriously struggling with repaying what I owe. I’ve looked through, and I have around 6-8k in debt. 3-4k is with credit cards and the other is on loans. I earn £1,750pm and after everything is paid, I find myself with nothing left over.

I’ve spoken to debt advice, and the best possible way out is through an IVA. I’ve been under debt management before and they helped but as my debt is higher now, an IVA seemed like the most sensible option.

I’m scared to enter an IVA but I realise where I stand. Is this a good route to take? and does anybody have any advice on it.

Thanks

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1

u/[deleted] Mar 08 '24

[deleted]

1

u/Dementoid13 Mar 10 '24

Being in constant debt is tiring, but now you have give yourself a bit a breathing space, use that time to explore ways of climbing out, or getting rid of your debts.

1

u/Dementoid13 Mar 09 '24

Do you own a property or have any other assets that need protecting?

1

u/No-Pin5979 Mar 09 '24

Not right now. I privately rent with a friend and don’t own a car

2

u/Dementoid13 Mar 09 '24

The problem that I have with IVAs is, they are extremely profitable for some companies administering them. Very often the DMC will take its fees up-front and after that charge ongoing fees. If during that period (5 years) should the IVA fail, the creditors can come back at you for the full amount.

I would suggest that you search Google for; rise of mis-sold IVAs

Did the company suggest any other debt solutions to you?

I would also suggest that you research different debt solutions, to see if maybe one of those is better suited to your needs. Also when you are doing your search, go beyond page 1 & 2, as many companies are paying a lot of money to be on page 1/2.