I am a homeowner and have personal debt of approximately £25,000 more than my annual income. I am not struggling to pay my bills, and have had no threats of legal action for non-payment. I have been advised to apply for an IVA, but this may not be a good solution and it may be better to contact my creditors directly.
While you’re able to keep your head above water there’s no need to do anything other than spend within your means. Many, if not most, people have debts larger than their annual income. The answer is to try to pay them off gradually and not increase your indebtedness. If interest rates increase and you can’t meet your repayments then you may consider an IVA or other solutions such as selling your home.