How can I solve my debt problems without lowering my credit rating even further,its poor as it is.?

I owe a few creditors in total around 15000-16000 pounds but the interest is the only thing that i seem to be paying back is the interest. I earn about 1000-1200 pounds per month I have 2 kids and rent to pay on the house that i live in.If I applied for an IVA how would this affect bme in financial terms.

How can I solve my debt problems without lowering my credit rating even further,its poor as it is.?

You need to tackle this situation before things get really out of hand.

There are a number of things you can look into, but I would recommend seeking advice from the Citizen%26#039;s Advice Bureau before making any dramatic moves.

Firstly, all the while you are servicing debt you are never going to dig yourself out of this.

You need to tot up all the debts you have along with the details of the interest rates you are paying on each debt. Put them in order of interest rate.

Look at your %26quot;fixed outgoings%26quot; each month - things like rent, council tax, bills etc - tot these up too. These are bills you have to pay.

Are you getting all the benefits you%26#039;re due? Check this with the Citizen%26#039;s Advice too - working families tax credit, any council tax allowance if you%26#039;re a single parent etc etc etc

Now look at your spending - what, really, are you spending your money on each month? How can you cut back? Consider your spending on food for example. The supermarkets are very clever at packaging things to make you spend more money, for example packing chicken breasts in packs that are too small for most families so you buy too packs and then either bin or freeze and forget the remainders. Packet food and pre-prepared stuff is enormously expensive in terms of cost per portion.

A roast chicken can also make soup, which, with some cheap, seasonal veg and perhaps some beans or pasta will make a really cheap, filling meal. Time to get creative! We got 14 portions of food out of a 4lb chicken last week - that works out at

about 40p per portion.

Anyway, I digress...

First, you need to reduce the amount of interest you are paying. Find low-cost balance transfers, loans etc and move your debt to these. Pay off the most expensive debts first and work down.

If your credit rating is stopping you from transferring your debt to cheaper loans then you need to speak to someone about the other possibilities. Again, this is when you go to the Citizen%26#039;s Advice.

Drawing a line now and taking control will work, I promise you. Don%26#039;t bury your head in the sand, it won%26#039;t go away. Read the %26quot;Getting out of debt%26quot; pages on the Motley fool website for inspiration and good advice.

How can I solve my debt problems without lowering my credit rating even further,its poor as it is.?

Please go to the Citizens Advice Bureau, an IVA is not suitable for everyone.

How can I solve my debt problems without lowering my credit rating even further,its poor as it is.?

contact CCCS on www.cccs.co.uk

or telephone 0800 138 1111

Its a registered charity, they run through your dets and your income %26amp; outgoings, send you a budget and letters to send the creditors.

It%26#039;s really good and helpful and cos its a charity, it dont cost you anything!

How can I solve my debt problems without lowering my credit rating even further,its poor as it is.?

you should of thought about it before getting into debt.

why should your creditors pay for your mistakes

How can I solve my debt problems without lowering my credit rating even further,its poor as it is.?

Visit http://www.myiva-adviser.com

for a very informative but not high pressure website all about IVAs. Look at their blog page in particular

http://www.myiva-adviser.com/blog/2006/1...

This should help you make your decision.

Good luck