Debt advice please.

Ynot said:
Hi, guys, thanks again, he hasn't said direct but from what I can figure out, its about £15.000 just built up over a bit of time.

I will copy and paste this to him on an email.

What's IVA?

Thanks all so far.
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https://www.citizensadvice.org.uk/d.../what-is-an-individual-voluntary-arrangement/

I had one back in 2008, which resulted in all my debt being consolidated, interest frozen, and even a bit of the total removed.

I paid it off over 6 years, and it will be on your credit file for 6 years from the start of the agreement, so you won't be eligible for any credit during that period (which is a good thing).

Once it is off your file, you basically have the start from scratch as your file is essentially a brand new one with no history.

The key is to not fall back in to old habits.
 
We can't give any solid recommendations on where to go without more details, £15k debt on what? Credit cards, loans? Has he defaulted on any payments?
 
Ynot said:
Hi, someone close to me has gone and got himself into a bit of bother debt wise.
He was looking for advice and would need a trusted company that would take his debt and then he pays a single payment each month.

I can not advice as its out of my league.

Just wondering if some of you might advice or point me/him in the direction of a trusted company that would take over his debt, or what ever way it works.

Thanks guys.
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Big John down the pub gives out cash in hand loans
 
My dumb sister had around 35k of debt with credit cards , store cards, personal loans and overdrafts. She never paid a penny and all she got was letter after letter with empty threats.
 
Ynot said:
Hi, guys, thanks again, he hasn't said direct but from what I can figure out, its about £15.000 just built up over a bit of time.

I will copy and paste this to him on an email.

What's IVA?

Thanks all so far.
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Individual voluntary agreement...Payplan will contact your lenders..negotiate a payment settlement and once met the rest of the debt will be written off...

One payment, 5 years single monthly payment....once fulfilled the rest of the debt is written off...
 
He needs to speak to CAB or PayPlan and get a Debt Management Plan (DMP) set up with his creditors. MSE Forums Debt Free Wannabe board, as mentioned earlier, has great advice.

Try and avoid IVAs and DROs unless it is really serious big time debt and don't pay any scumbag company for a debt plan or managed bank account, CAB and PayPlan are free services.

Also consolidation loans don't always work even if he is offered one at a good rate. What tends to happen is once all the old lines of credit are cleared, you start spending on them again and before you know it you are back at square one plus a consolidation loan to pay off.
 
LeeUK said:
Also consolidation loans don't always work even if he is offered one at a good rate. What tends to happen is once all the old lines of credit are cleared, you start spending on them again and before you know it you are back at square one plus a consolidation loan to pay off.
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It’s down to the individual if they have the will power to stop spending once it’s paid off.
 
Bouton Aide said:
It’s down to the individual if they have the will power to stop spending once it’s paid off.
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easyrider said:
well of course not...but once cancelled and you start living within your means...one would be more likely to be more mindful about applying for more credit....
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That’s why I said what I said. It’s down to the individual not to mount it up again. It does happen.
 
Tackling debt is one thing, but changing habits is another. I'd recommend starting to budget too. There's loads of great apps out there to do it. I use www.ynab.com to great effect.

I had 38k debt just over two years ago. I now have 15k in savings, and 4.5k debt. That's almost entirely down to properly budgeting once I'd consolidated debts.

Within a month of budgeting I'd removed around £300pm in interest I didn't really know I was paying (I was THAT bad with finances). I now love budgeting weekly... Savings growing all the time, and I've spent more on gadgets and toys than I used to. Have not had any finance related stress since.
 
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