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i am 27000 in debt and on a debt management which will take yrs only have my income of around 1200 a month and pay 1170 in expenditure on bills, rent etc so only paying 30.00 a month mostly catologue debts wanted to try and avoid bankruptcy any other suggestions please

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A second job?

 

Tough, but maybe your only option?

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i am 27000 in debt and on a debt management which will take yrs only have my income of around 1200 a month and pay 1170 in expenditure on bills, rent etc so only paying 30.00 a month mostly catologue debts wanted to try and avoid bankruptcy any other suggestions please

 

Would you be better off on benefits,a lot more are.

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No quick fixes :(

 

I'm in similar position (but all figures bit higher). I've found keeping a close eye on exactly where the money goes helps. I have everything in a spreadsheet so I know exactly what is coming out and when to service my bills/debt.

 

In combination with online banking it's easy to keep a record of exactly how much you owe and I find seeing the graphs of debt level slowly decreasing helps me stay focused on being very careful what I spend the little I have each month.

 

The obvious options to speed things up:

- reduce outgoings

* find a way to pay more to debt, look very closely at exactly where non-debt payment/household bill money goes (buying lunches for example, magazines, gym membership, little things like that)

- increase income

* any chance of asking for more pay at work? if so can you justify a raise with you efforts?

* a second part time job - this would be very hard if your'e already doing a fulltime job, but it is doable

* clear out stuff you haven't used in last 6 months via online auction sites/SF classifieds

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i am 27000 in debt and on a debt management which will take yrs only have my income of around 1200 a month and pay 1170 in expenditure on bills, rent etc so only paying 30.00 a month mostly catologue debts wanted to try and avoid bankruptcy any other suggestions please

 

Is the "debt management" involving an IVA or any other third party?

Most IVA's run for 5 years, which should be manageable?

 

 

Is there any specific reason that you want to avoid bankruptcy?

It could be the best solution.

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Remember that clearing what is called "Priority debt" is, quite literally, your first priority ( ;) )

 

That is, clearing gas, electric, water, rent/mortgage, before you look at paying off loans and "door-stepper" companies like Shopachek. Your priorities are to keep a roof over you and your family's heads, and "coal in the grate".

 

Talk to the CAB before you rush into any decisions.

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i am 27000 in debt and on a debt management which will take yrs only have my income of around 1200 a month and pay 1170 in expenditure on bills, rent etc so only paying 30.00 a month mostly catologue debts wanted to try and avoid bankruptcy any other suggestions please

 

if your debt management is with a company that advertises in the newspaper then speak to CAB. They wont charge or try to make a profit out of your situation.

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i am 27000 in debt and on a debt management which will take yrs only have my income of around 1200 a month and pay 1170 in expenditure on bills, rent etc so only paying 30.00 a month mostly catologue debts wanted to try and avoid bankruptcy any other suggestions please

 

To be honest it sounds like you need either a better paid job or a cheaper place to live.

 

Do you own a home? I'm assuming so unless you're paying extortionate rent payments.

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firstly i am paying £70 a week council 3 bed flat , and are a family of two adults and one child aged 15

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firstly i am paying £70 a week council 3 bed flat , and are a family of two adults and one child aged 15

 

Where does all your salary go? Obviously I'm not expecting you to list it on a public forum but to spend just about all your money on bills seems very high.

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I'll be honest with u we are paying gas and electric at £98 a month to british gas by direct debit, we pay tv license full council tax and also full rent also we pay in to life insurance for when we die

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If you haven't done so already, I'd suggest a chat with the Consumer Credit Counselling Service, which is a charity and is impartial in giving debt advice.

 

I'm close to actually getting back to debt free after an ex landed me in over £33k of debt (thanks in part to my stupidity in marrying him) and spending the last 9 years paying off the debts bit by bit with a DMP. I'll get there and it will be the last act in walking away from an abusive marriage when I do.

 

For some people bankruptcy is actually the start of a solution to debt, so I don't think that you should automatically discount it. It will affect your credit rating permanently, but then again that is not always a bad thing as long as you have a basic bank account and the income to fund your daily life and an IVA or DMP will affect your credit rating in a pretty similar way.

 

If you really can't make any reduction in your outgoings and increase your payments then you may find that you're going to get taken to court by your creditors anyway- I'm very lucky that we weren't taken to court by anyone, but then again I also started a DMP before I'd got into any arrears with anyone (I was ill and it was easy to see that the outgoings couldn't shrink after my income ceased, so predicting that I was going to need a DMP was simple) and was able to make a payment of a little over £300 a month.

 

The maths is easy- find a way of reducing your outgoings or increasing your income (partner working, second job etc). If you can't do either then you need professional advice, but please don't take that from any of the companies who advertise on TV. They make money from your debt. Talk to the CCCS and all of the advice you receive will be impartial and free.

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