Hi,

I sympathise alot with your situation as I was once in this terrible position so I know and appreciate the stress you must be going through.

I would suggest several things. Can you move in with your parents for 6 months - 1 year? this will save you a hell of alot of money and also hopefully speed up the time you are able to pay them back if you are able to pay off your debts.

Sell everything that you don't need, furniture, excess clothes, mountain bike, sell your car and get a cheaper one....this could save you 1000s ....

Is the debt amount in several loans and cards? Can you consolidate them with your bank? If you have never missed a payment then you should be able to get a loan to consolidate them.

Bankruptcy may not be a bad option BUT I would say don't go for the IVA because you have the potential to earn alot of money with your job therefore there is some chance if your disciplined that you could pay half the debt off in 18months.

Definitely speak to the lenders and tell them your situation they make be able to reduce your monthly repayments for a year especially since you have been keeping up to date....they would much rather have this than declare yourself bankrupt....you would be surprised how much they will reduce.....but this will be reflected on your credit file....but lets face it you won't be getting any ADDITIONAL credit for few years so thats not really a big deal

How old are you? because this will have a bearing on the best option for you.....if your in your 20s 30s then 6 years no mortgage is not a disaster......

You really have to budget yourself.....if you can get £40K per year then potentially you could be saving £1500 a month staying at home with parents , thats nearly £20K in one year!

Also is there a chance your parents could take out a secured loan on a property to consolidate your debts? A big ask I know but worth a shot .....

Just bite the bullet and live like a monk for a year....it will suck but you will feel alot better in 12 months time....

I tell you what Landshark out of all the comments I read that is by far the best yet! Spot on with the advice, keep it up! You should start charging!

Bankruptcy MUST be viewed as the last possible option. From what you have written here, I don't think you are at that point yet.

You have a lot of unsecured debt and it is almost certain that the credit cards are the biggest liabilities. Before you do anything, do any of the cards or the loans have a PPI policy as part of the monthly payment? If they do, get in touch and sort this out. If not, have you contacted the card issuers to see if they have any assistance that they can offer? I would also sit down with your parents and see if you can suspend repayments with them temporarily until matters become more 'fluid'.

Although you see a plethora of adverts for IVAs and other debt resolutions that may be available, ALL of these should be viewed as last-option only.

The best thing you could do is to seek the advice of an IFA and see if he/she can give you options.

The implications of Bankruptcy and IVAs is that you will spend AT LEAST six years without the ability to get credit of any kind in the commercial world and that includes a mortgage.

Get rid of the highest interest account first and work your way down the list. Hold back on anything that is not necessary or vital. No pubs/clubs or evenings out. Stay off the cards and keep to a minimalistic lifestyle. CASH ONLY - yes it is possible and it takes a LOT of self discipline but it can be done. Run the car ONLY when you need to. It takes time and you really will feel that you are not 'living' but there are people out there that are worse off than you and have much bigger responsibilities, and they make it without the need for Bankruptcy or IVAs. Keep your working day schedule and keep plugging away on the job front. Use your computer to the best of its abilities and make sure your CV looks good and is up to date. Edit it according to the job spec and make sure you keep at least one suit ready for the interview.

This is a moment in time, no more, no less and it will get better - I just don't think Bankruptcy or IVAs are the way to resolve problems - they usually create more than they solve.

SHARK!

I'm going to see the nearest CAB early in the New Year with a view to submitting a bankruptcy petition, but would wlecome any comments on here as to possible alternatives. I was laid off from my last job at the end of September 2007 & am yet to find a new job - am optimistic that I will be in employment by the end of January, I usually command a salary of around £40,000. Unfortunately, due to my own stupidity over the last few years, I have accrued £49,000 in credit card & loan debt, plus I owe my parents £30,000. I have never missed any payment on any credit card, loan or utility bill in my life, but realise that come February even if I am employed again I will not be able to make my monthly payments & live. In terms of my assets - I rent an apartment that I share with my flatmate (I own all the furniture in the flat), I own a car that is essential for my job (it involves visiting sites etc), a good mountain bike, a decent PC, a large TV & decent home-cinema system, & not that much else. I wondered whether my bankruptcy could be affected by where I live, as it is quite a nice place to live & I suppose I could live somewhere cheaper & perhaps save £150 a month (but I wouldn't want to). I also own lots of clothes (8 suits, loads of work shirts etc), could these be construed as assets ?. Personally I see bankruptcy as my only option, especially as I know my parents cannot help me out (I make regular monthly payments to them & hope to be able to continue to do so - I really don't want them to be involved) & I feel I need to learn my lesson the hard way - I have always been very sensible but made some stupid decisions financially wise & I know I won't ever make them again. I've read about the various debt companies & other solutions, like an IVA, but I hated the idea of paying the company a 15% share to deal with my creditors instead of me being able to deal with them direct, & last time I spoke to a debt company the IVA they suggested left me with virtually nothing left to live on - I'm not expecting an easy life, but obviously need to live. Any suggestions most welcome.