Debt Management Advices

Should I choose a debt management plan or bankruptcy? I live in England.?

Apart from humiliation and a 6 yr freeze on my credit rating which basically is shot to shit anyway, what else do I have to loose? My debts are about £12,000, but to me they may as well be £1,000,000. Because I was unable to work for 3 yrs and on incapacity benefits, a few credit card balances spiraled out of control ,due to lack of understanding and inability to cope at the time. I've managed to claw my way out of he unemployability trap and I'm back at work but my pay is'nt what it used to be and it will take time, confidence and training (paid by me!) to get on top of thigs. Im a lone single girl so life, especially rent is expensive. I started a debt management plan with 'Consumer Credit Counselling Service' when I was unemployed cause I was determined 2 take responsibility. They've been very supportive but I feel its taking its toll , as I can't afford things like a secure place to live, further training, driving lesssons, or holidays etc..and I have another 7yrs to go..

Public Comments

1. Have a look on the Consumer Action Group Website forums. There is a specific one dealing with debt and there is tons of advice from making offers of repayment to getting debt dropped due to lack of legally binding documentation. http://www.consumeractiongroup.co.uk/forum/general-debt/ A 12K debt is nothing and not worth going bankrupt for. There are also a number of organisations that can help and are free, such as the Citizens Advice Bureau. http://www.adviceguide.org.uk/
2. OK, first of all, go to your nearest Citizen advice off ice and ask them to make you an appointment with the debt councillors, you will have to take all statements and paperwork for all your debts including bank statements and account statements and address of all the companies you have debts with! They will help you to reduce the debts and pay what you can without going for IVA or bankruptcy.
3. CCCS are great and they are the best company to deal with when trying to repay debts - don't go for bankruptcy unless you absolutely have to - your bank account will be closed and you will find it close to impossible to get any lines of credit in the future. Speak to CCCS about offering a 'full and final' settlement to your creditors, basically you offer a percentage of what you owe and they 'write off' the rest - well worth a shot!
4. If you have about 12k debt and 7 years to go I suppose you would be paying about 140 per month. Assuming that the interest is frozen. There are no guarantees that the interest won't come back on again - your credit rating could be affected for up to 13 years if your creditors continue to default you or take you to court. For the price of 3 months payments (well £475) you could be debt free inside 12 months, your credit rating will be affected for 6 years. You might have to make some kind of payment for 3 years. If you have no assets, no problem with your employment and no aversion to your name being in the local newspaper and on the internet. Bankruptcy is certainly something you should consider.
5. An iva is not viable as your debts are not that hoigh you would pay more in fees and the creditors would probably not agree with it. Bankrupcy will cost you £485 to file you may still have to make payments for up to 3 years, but you are usually allowed a reasonable standard of living and may not have to make any, but this will affect you creditwise for a long time and as you are young I would try to avoid it. Get some specialist advice, ring a few debt companys and see their opinion but dont make any upfront payments to anyone just say you only want advice. I hope this helps I know the rotten feeling well, but there is light at the end of the tunnel you just have to find the right way. All the best
6. You can't sign an IVA for under £15,000 but you can talk to your creditors independantly, or go bankrupt, this will last for around twelve months, so you would have to live with this. Give me a call for further advice, I have filed bankruptcy for different people through my accountancy practice - Steve 07984-235701
7. Listen to Boris your first post. I'm a member of Consumer Action Group and can help with your problem. I would think that most of the debt is made up of unlawfull charges that can be claimed back. Dont panic....It can be sorted. go to www.consumeractiongroup.co.uk
8. Check out http://www.moneysavingexpert.com before doing anything. Seriously good advice and excellent forum. Hope this helps. Thanks David http://www.shreddershop.com Is your life in shreds?