Thanks ever so much for that advice! It is tempting to consolidate, especially at Christmas but I won't! Things start to clear Sep 09 and I will be finally debt free Jan 2010! I have got some xmas work lined up and are working all the overtime they chuck at me which is all going on the loans!

Once again thanks for you help

Hi,

You stick with it my friend, it gets hard at some point in everyones life and now it seems to be your time. An IVA will affect you for the next 5 years and if you can get out of some of the debt within 2 years, hang on.  It will be tempting to consolidate for the spare cash but when 2 years is up you may be kicking yourself. Two years will fly by you watch;-)  You will have all the years ahead to enjoy the fruits of your labour, keep it up.

Hi coney just read this thread - whoever told you to stop paying your crediters is MAD - that is one of the worst things that you could do it will really effect your credit record - you say that you start to finish loans in just under 2 years - stick with it and you will find light at the end of the tunnel, as you finish one loan pay more to another  - check that there are no early repayment charges first  - clear high interest credit cards as soon as you can and take one thing from this experience - treat credit with caution.

good luck

Hi coney,

I think you have answered your own question, I think it would be better to struggle for a further 2 years, rather than lumbering your self with anymore new loans secured or unsecured. Its clear to me you are switched on and fully understand your situation, under no circumstances would I contemplate an IVA this can ruin your credit record for years to come, its good that your girlfriend is very understanding, and im sure she would agree that for the  sake of 2 years when all your loans are clear the struggle was worth it. maybe complete an income and expendeture sheet to see where all your money is going each month seeing if there any part of your life you can cut back on for example buy asda's own beans instead of heinz. I think if you continue as you are you will have greater satisfaction once everything is paid of and be proud of your self you have realised your situation and you are doing something about it.

 Carl

Hello Forum members!

I have a serious question regarding my finances and what to do with all the loans I have. Basically I'm 25 and living with my partner who is also the same age. She is training to be a teacher and is currently earning 1000k a month. (This is likely to go up once qualified). I am earning £1500k a month and we have a mortgage which is £938 per month. However before I met my partner I ran up some large debts on my credit cards which resulted in me taking out 5 year loans with Nationwide, Northern Rock, Barclays and Egg. I also have car finance which costs me £144 a month. In total without putting any money towards the mortgage my loans come to about £1000 a month. Then there is petrol which costs me another £100 leaving £400 to put straight into the joint account. My partner is dead understanding about this and puts all her wages in each month! With our combined payments the mortgage, bills and shopping is all paid for each month leaving us with no disposable income! I have thought about many options which would help free up cash, to begin with a secured loan on the house and I even went down the line regarding an IVA! The problem with the secured loan is I'm just dragging out my debt for 10 years and I don't really want to secure any debt onto the house. An IVA sounds to good to be true but when I spoke to a company regarding this they told me to change bank accounts and stop paying creditors! I just couldn't bring myself to do that. I'm still young and I didn't want to mess up my credit scrore to stop me getting more mortgages in the future when we want a bigger house etc.. My loans start ending in a year a 8 months with the last one ending Jan 2010. With the job I do I can't get a second job but I have been jumping at all the overtime my work throw at me! It sometimes means starting work at 3 and not finishing until 6am the next day! I'm making £200 more a month when I work the overtime whch I'm using to put towards Christmas! What I want to know is am I doing the right thing by not getting more loans? I know If I took out a secured loan I'd be £500 better off a month but I'd be paying more back and over a longer period. Two years isn't that far away is it?