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alvin
| 06-06-2007 10:36 AM |
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Joined: 06 Jun 2007 Posts: 2 | I have read a few websites and I am still not sure what I should do. I have about £33k of debt and not sure whether I should get a loan and reduce my monthly outgoings, which would be great, or write them off with an IVA? What worries me is all the negative publicity I am reading about debt consolidation companies which Carol Vorderman advertises for. So I would appreciate any advice. |
| DW George | 06-06-2007 12:02 PM |
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Joined: 01 May 2007 Posts: 174 My Profile | Alvin Firstly I would caution against consolidating your debts if you haven't solved the primary cause of your debt problem. You'll need to look at yourself and be honest. Ask how has the debt levels got to this stage and do you trust yourself with taking on another debt. In consolidating this amount of debt you will have to use a secure loan. Which basically means you are converting unsecured debt into secured debt. If you fail to keep up the repayments then you will lose your house. Which is why you need to examine the cause of your debt problem. Secondly, can you afford to keep up the repayments of this new consolidated loan. To find out draw up a realistic budget sheet. In this budget for all your expenditure, make allowances for holidays, birthdays, etc (see my article debt management strategy). What's left after each month is your disposable income. Now compare this with your repayments under a consolidated loan. If you can easily afford the repayments and you have cut up your credit cards then a consolidated loan may be for you. If you can't afford the repayments you may be wiser to consider and IVA or bankruptcy. Let me know if you need any more help George |
| James H | 12-06-2007 10:12 PM |
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Joined: 27 May 2007 Posts: 32 My Profile | The article on a Debt Management Strategy is very good. Consolidating is dangerous because it only works if you can afford it and are committed enough to maintain payments. An IVA is a long term answer, but again, is not ideal for everyone, read the article, read up on IVAs, compare, contrast then decide. Keep posting because you sound like an excellent case study, in a very positive way. |
| paladin | 13-06-2007 02:57 PM |
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Joined: 06 Jun 2007 Posts: 77 My Profile | George and Alvin If you don't pay your unsecured debts then you will be effectively converting the debt into a secured debt as the creditors will be chasing you if you have any equity in your property. If you decide an IVA is the right option for you, you will have to release the equity in your house, if you are made bankrupt then you will lose your house. A debt management plan is not guaranteed (creditors can change their minds about it at any time) and really should only be considered as a short term solution, rest bite There is no getting away from it. If you have equity in your house, can't re-mortgage, then a secured loan is your only option. paladin |
| mallorca | 19-06-2007 09:49 AM |
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Joined: 28 May 2007 Posts: 17 My Profile | George and Alvin If you don't pay your unsecured debts then you will be effectively converting the debt into a secured debt as the creditors will be chasing you if you have any equity in your property. If you decide an IVA is the right option for you, you will have to release the equity in your house, if you are made bankrupt then you will lose your house. A debt management plan is not guaranteed (creditors can change their minds about it at any time) and really should only be considered as a short term solution, rest bite There is no getting away from it. If you have equity in your house, can't re-mortgage, then a secured loan is your only option. paladin ----------------------------------------- I am sorry but the above post is complete crap. If a debt is unsecured the worse thing they can do is put a caut6ion on your house all this means is that there will be a clause on the land reg and when you sell or refinace you will need to clear it. Take the advice that has been posted work out what you can afford each month if you get commission do not take that into consideration work on basic salary, take the loan over a long term get you finmace sorted out and refiance in three to four years. |
| paladin | 19-06-2007 10:02 AM |
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Joined: 06 Jun 2007 Posts: 77 My Profile | mallorca Perhaps I did not make my point clear. If you don't pay your debts, then you will be made bankrupt and that means the creditors will want all assets realised, including your house. paladin |
