Thanks for the reply Big Jasey

Before I do anything I am going to contact all my creditors and see if they will accept1% of the balance,this wud half my payments and as soon as the first one is settled I will increase % to the remaining. I hope they all agree to this .

regretfully, i would say yes, if you want to address the situation over a shorter period. other than that, you can stay in the house and make an arrangement with the companies. most of the major lenders have departments within their company that will negotiate with you to help address your issue. each creditor has an acceptance criteria and if they get this, they will stop the int/chgs. an example is MBNA, their contracual payment is 2.25% of the balance, so if you pay this, or more than this amount, you are a normal client, and pay int. now if their clients fall into difficulty, they will stop the int/chgs if the client can pay 0.8%-2.24% of the balance. this will allow them to keep it 'in house'. there are also client that really still cannot afford the 0.8%, so although they will stop the int/chgs, the account will then get passed onto a collector. but its important that you speak to them, otherwise they wont know your situation and keep applying the charges in the meantime.

although these companies make profits, they dont want to sell the debt for less than the value, so will do everything they can to help you, and avoid doing this.

Thanks for the reply big jasey

So it looks like down sizing is the best option?

realistically an IVA would be rejected anyway as there is too much equity in the property, so they would look to write off any debt, they will look to secure it against the property. you can look at debt management, but i warn you with that level of debt, it will take some time, or a remortgage. you wont get a consolidation loan (unsecured) to cover the whole amount, so unless you address it soon, it may spiral completely out of control.

Thanks for reply tother,one last ?, will creditors not go for reduced payments?i'd rather stay in our present house .

Don't borrow any extra against your home- you'd be better downsizing if it's feasible, even if you have to rent in between. Pay everything off, get rid of every single open account bar 1 credit card for emergencies, and ask them to reduce the limit on it. Put it in a box in the freezer where you can't get at it in a weak moment, and concentrate on living within your means. An IVA is really a last-ditch option.

Hello all

I'm desperate for some advice,I will try to keep it short and to the point.Due to my own fault of gambling and overspending we find ourselves in a large amount of unsecured debt,bank loans and credit cards.Total amount is in the region of £70,000 .My wife and I both work but find ourselves now at the point of using credits cards to make ends meet and pay other bills each month,obviously increasing the debt each month.Our morgage balance is £75,000 on a property with a value approx £165,000. My question is this,the options that seem open to us are a consolidation loan,moving home and down-sizing and using the capital to settle most of the debt or going for a IVA,or could we arrange with creditors to reduce payments and avoid a IVA as i have heard that these have strings attached.Please, please, let me know your thoughts or words of advice,thanks