My wife and I both have good jobs and we usually have around £4000 coming into the house each month. However, when the kids were young, my wife did not work and we managed to run up quite a lot of debt which we are having real difficulty shifting.

Our mortgage is around £1000 each month and we have around £40k on credit cards. We pay the minimum payment each month to each of the cards (which is all we can afford as it amounts to more than £1800 each month) but the interest on these cards is horrendous and the total outstanding only comes down by a few pounds each month.

Obviously we have a lot of other financial commitments each month (gas, electricity, petrol, council tax etc) which means that we just manage to break even each month. Whenever there's any extras (car repairs, kids' school clothes etc), we really struggle to get by.

I suppose we're better off than a lot of people because we usually manage without getting into any further debt but it's very frustrating to see so much money go out every month on the credit cards without making much impact on the amount we owe.

Is there any way we can get out of this vicious circle?

Hello,

I believe you are one of many who are suffering from high outgoings to credit cards. I will cut to the chase and offer you a solution. In your case, i will suggest an IVA (Individual Voluntary Arrangement) An Individual Voluntary Arrangement, often referred to as an IVA, is a formal arrangement between you and your creditors where, based on your income and expenditure, an agreement is met to reduce the payments you owe by up to 70%. Contributions will be paid over a period of approximately 5 years

• An IVA can reduce your total debt by up to 70%
• An IVA offers clear structure and legal guidance / protection to you.
• Multiple monthly payments combined into one manageable payment.
• No more angry phonecalls - Your IP (Insolvency Practitioner) will deal will all creditor communications.
• An affordable repayment plan enables you to live sensibly whilst keeping up payments.
• An IVA is a legally binding agreement.
• Once the IVA is in place, creditors cannot make any changes to the agreement or add further interest / charges to your debt with them.

This is what i usually recommend to my clients who are employed and have debts of over £10,000. I will be able to recommend you to one of the best IVA companies in the UK. You may PM me for further direction.

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This was SUCH a help to me, so I thought I would pass it on - take a browse around and i'm sure you will be pleasantly surprised, I certainly was. Hope this helps. And please let me know what you think also..Debt Help - Debt Consolidation and Debt Management

Feel free to share this with anyone else who may need help with their debts.

Mariea

this information may help me
thank you

Would have to agree with MDSUK. An IVA would be a perfect solution for someone in your circumstances. The card company will continue to milk you for high interest, you are a great client for them. Ring around before going with a debt management company, and research them as I'm sure you have heard there are a few unsrupulous practices out there...

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thanks a lot for the info. this help me realize.

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Uk bankrupt celebrities

A friend of mine was in a similar situation and ended up going to see a debt advisor where they pretty much resolved all there issues. They suggested that they consolidate there debt which made it a lot easier for them to manage. There still paying it off but they are in a better position than they were which means that they now have a bit more cash to spend on themselves.

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