bankruptcyinstruction

I was convinced I'd have to go bankrupt...

. . . and I'd never thought that could happen to me. I had a full time job as an IT manager and no debt backlog. It wasn't hard to spend what I wanted to and meet all of my commitments. Then redundancy hit. I was shocked to find that I wasn't even entitled to redundancy pay. It took me 12 months to find another job and I had to rely heavily on my credit cards to supplement my £50 a week job seeker's allowance.

I was delighted with my new job when it finally happened, but my credit card repayments were taking a large chunk of my salary. I decided I had to take positive action and took out a £20,000 consolidation loan.

Things seemed better at first, but then my long term partner and I separated and I had to move out of our home into a rented flat. I needed money to pay the bond and I had to furnish the flat too. The only way I could do this was by using my credit card and this ran up another £3000 worth of debts.

Things got even worse when I had to move again and pay another £860 bond on my credit card. By now my salary barely covered my creditor repayments. I was using my card to buy everyday items. I tried for another consolidation loan without luck.

It was then I talked to Debt Free Direct. They explained to me that I didn't have to go bankrupt because an IVA was a much better alternative for my own situation. They didn't charge me anything and it was such a relief to receive clear, impartial advice. With their help I've avoided bankruptcy and I can be realistically debt free in 5 years.

The IVA sounded too good to be true...

. . . when Debt Free Direct first explained it to me. My debts had started when I got married for the second time. We wanted a perfect wedding - a fresh start after years of difficulties. I took out a loan of £15,000 to pay for the wedding and honeymoon. I had some general credit card debts already, but I had a good salary and there didn't seem to be a problem. However, it did seem like sensible financial planning to take out a consolidation loan to reduce my payments so I borrowed £30,000.

Payments were manageable, but the following year my wife and I made the decision to start IVF treatment so that we could have a baby together. I took out additional loans of £12,000 to cover the cost of the treatments. Then the company I worked for was taken over and my monthly bonus stopped, substantially reducing my income.

I tried consolidation loans and transferring my credit card balances to lower interest rate cards, but the substantial cut in my monthly income meant I was seriously overcommitted financially and unable to maintain even my minimum monthly payments. I was also falling increasingly behind on my maintenance payments for my children from my first marriage.

Debt Free Direct turned things around more quickly than I could believe. When they explained how IVAs work I was so relieved. They talked me through the whole process then organised an IVA with my creditors who have stopped chasing me and agreed to lowered payments . My creditors have written off my remaining debts, I haven't had to find any fees and I'm finally paying what I can afford. The best thing of all is that I can look forward to being debt free in 5 years.

We had been spending on credit cards a bit too freely...

. . . after we found ourselves in serious debt. We hadn't expected to have problems when we were told we could buy our home after renting for six years. It was incredibly exciting to own a property at last.

We loved renovating our home too. It was wonderful to have a new kitchen and make sure everything was the way we wanted it. The only problem was that costs started to build up and we realised we had been spending on credit cards a bit too freely. We had to take out a joint loan of £10,000 to try and reduce my card balances. Soon after that my husband took out a £15,000 loan to reduce his own balances and I borrowed a further £10,900 to help control mounting costs.

That was when we realised things were starting to go badly wrong and tried to negotiate lower payments with our creditors. Unfortunately we couldn't reach an agreement. We also tried to raise the equity from our home, but that proved impossible.

A friend told us about Debt Free Direct and we gave them a call. The woman we spoke to was really helpful and open with us, explaining all of our options carefully. She asked us a lot of questions to make sure she understood our situation before advising us on the best way forward. We felt confident and we took her advice. It was such a relief to get back to affordable repayments and there was no charge for their service. Now we're feeling secure again and we know that our home is safe.

I thought a consolidation loan might help...

. . . after debt problems had built up while I was at University. I'd heard that loans like these were a good idea and I was desperate for help.

I already owed money when I started at University. My father had died and I'd had to pay £500 towards his funeral. When my mother and I moved into a rented property, I also bought us some decorating materials and carpets for over £400 to help cheer us up. It wasn't just one-off costs that were the problem. I had been using my cards for day to day living expenses too, about £200 per month. Just before my course I took out my first consolidation loan from a high street lender to pay off all the cards.

I soon had to use my credit cards again for course fees and textbooks, which came to another £1,300. University meant my living costs increased as well. Travelling expenses, rent and a mobile phone came to around £400 per month.

Part time work helped a lot but then my hours were reduced. Things got so bad, I decided I had to leave University and take on full time employment so that I could pay off my debts. Then it became easier to borrow! I borrowed £3000 from an online financial institution for my M.S.C.E. computer course and was thinking about a new consolidation loan to try and lower my payments.

That's when I found Debt Free Direct. They talked everything through, including the option of a consolidation loan, and gave me a really effective way forward based on my own situation. For the first time in ages I feel back in control and confident that I'm going to be debt free.

I was sure I'd need a big loan...

. . . because it seemed the only way to clear the loans and credit cards I'd used to help me pay my living expenses.

It had taken a while to build up my debts, and I'd tried to resolve things already. The income I did have meant I eventually paid off one loan completely and closed one of my credit cards. That left me with one card, but I had to increase the balance on it to £10,000. To help sort myself out, I also found a new 0% interest credit card that would help me consolidate my remaining debts.

A couple of years later, I took out a loan of £7,000 to completely clear the balance on one of my cards. It wasn't easy but I was gradually managing to reduce my debts. Then I was made redundant. It hit me hard, emotionally and financially. I was forced to use some of the redundancy money for living expenses and to help me meet my minimum monthly payments on my existing debts. A new lower interest rate card helped at first, but even after I found new work I soon found the juggling act was starting all over again. I transferred my balances to try and keep things going, but I was still having to pay for my living expenses on the card and it was becoming more and more impossible to manage.

The relief when I finally rang Debt Free Direct was enormous. They helped me to explore all of my options, not just those I'd thought about. What impressed me was their independence, and the fact that all the options they gave me cost less than I was paying. Now my repayments are affordable again and I'm back in control.

Debt management seemed the best way ahead...

. . . but I couldn't be sure because I needed advice I could trust. Getting into debt hadn't been hard. Credit cards gave me money for holidays, entertainment and lifestyle purchases. It all seemed so easy - and exciting. Then I wanted a car, so I took out a personal loan for £10,000 to cover driving lessons and insurance too.

I soon ended up juggling the cards, using cash advances from one to pay the minimum monthly balance on another. When I moved out of home into shared accommodation, my living expenses increased and I found it increasingly difficult to keep up the minimum payments. By this time I was using the cards to supplement basic living expenses. Luxuries were a distant memory.

A new job brought higher wages, but I moved into my own council flat and used my credit cards to furnish it. I tried paying off the £10,000 car loan and three credit cards with a £14,000 consolidation loan, resolving to stop using my credit cards. But it was hard to break my spending habits and I soon built up unmanageable debts.

My minimum monthly repayments were more than I could possibly afford. I realised that I was never going to have enough money to live on and I contacted Debt Free Direct after I saw an advert on TV. They were brilliant at talking me through my debt problems, explaining all of my choices not just debt management. They told me how much faster I'd get out of debt with an IVA and their help was free too. Now my creditors have written off my remaining debts and I'm paying an amount I can afford each month.

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Both of us dreaded bankruptcy...

. . . and what it could do to us. We thought we were being responsible when we took out a flexible loan to fund some home improvements. The money did help with living expenses too but I worked hard - up to 80 hours a week - to make sure we were OK. However, I didn't notice just how fast my debtswere growing. Finally I took out a consolidation loan of £25,000 to make things easier.

That was when expenses started to really mount up. We moved home. I visited my family in South Africa and my daughter was born. It was all good news but it left me with credit card bills totalling £9,000. My partner took 6 months maternity leave and her salary was reduced by 70%. I couldn't meet my repayments and I had to use my credit cards for general living expenses. A £3,000 loan helped for a while, then it became £5,000 soon after.

Things were a real struggle by now, but I was still working long hours and thought we could get through. The real disaster came when my employer and I had a major disagreement and I had to look for a new job. It paid a lot less and I didn't have the same opportunities for overtime.

I destroyed my credit cards, but couldn't work out what to do until I spoke to Debt Free Direct. They talked me through my situation without charging me, finding out all of the background details before suggesting a solution. I hadn't heard of an IVA before but now our creditors have stopped hounding us and we're paying what we can afford at last. For the first time in ages I know we're really going to be debt free.

Good debt advice was really hard to find...

. . . and I was desperate after my boyfriend left me. He gave me an unpleasant surprise: £3,600 of debts on money he had borrowed in my name. I also had my own substantial credit card bills because he had let me pay all the household expenses. I was obviously pretty unhappy, but I had a well paid administrative job and thought I would be able to get through, put it all behind me. I took out a £10,000 consolidation loan to reduce my monthly outgoings as this seemed the best way to handle things.

Then I lost my job and was only able to find work at a lower salary. I moved in with my family, who agreed to let me live rent free while I repaid my debts. I also tried to make informal agreements with my creditors. I wanted to get them to agree to payments I could actually afford, but I was unsuccessful and interest continued to accrue on all my debts.

I was even considering bankruptcy when I found Debt Free Direct. I dreaded what my situation might mean for my future but couldn't see a way out. Debt Free Direct were amazing. They looked at my situation closely and it really helped to have someone to talk to who was on my side. They didn't even charge me anything because the costs were covered by my creditors.

It turned out that things weren't as bad as I'd thought. Debt Free Direct gave me all of the facts - I really felt I could trust them. They explained what an IVA was and how it could help. Now my creditors have stopped harrassing me, I have monthly payments I can afford and I know my debts will be written off after an IVA. Best of all I've avoided bankruptcy, something I really feared.