Advice needed.....

[tommyc]

Hi everyone,

Firstly, this forum is great and it is a relief to find people in a similar situation to me!

I could do with advice on the best way forward for me. I currently owe around £22,000 on various credit cards and a loan. The interest rates are fairly high on most of these (15-29%).

I am behind on council tax payments and have just worked out a payment plan where I pay £215 per month. My electric and gas payments are around £150 for similar reasons.

I have also got in the Payday loan trap where I end up paying around £150 interest per month.....

My take home is around £2050 and after all bills, and £250 housekeeping (for a family of 4, soon to be 5 in 3 weeks), excess overdraft charges etc. comes out it leaves me with minus £100. Not good!

If I entered into an IVA I think I could potentially pay 100 pence in pound and still be paying £350 less each month than I am now. Would this be a viable option? Or would a DMP be more suitable for me?

Also, can my payday loan be included in an IVA?

Thanks very much.

Tom

[luluj]

DMP's are ok if you are comfortable with the possibility of interest being added throughout the term . IVA for me was the more comfortable channel to take - we are paying almost 100% of ours over five years and to me the peace of mind of no more interest far out weighed the never knowing!

Pesonally if I was in your circumstances four soon to be five, the security of knowing no more interest would answer my question - however life in an IVA is tough and you do have to be prepared for basic living for five years while you pay it off!

10 down 50 to go!

[thanna]

Welcome to the forum tom i;m sure one of the experts will be along shortly to help you out you;ve come to the right place for support and advice Tracy[:D]

[MelanieGiles]

Hi Tom

It is a little difficult to advise with such limited information, but it strikes me that with a family of five your expenditure ought to be quite significant - and that £250 per month for housekeeping is not realistic. I think that you ought to take proper advice directly from an insolvency practitioner who can advise you about all options available to you.

[plasticdaft]

We are £75 a week for 3 of us,although I eat like a pig,albeit a shrinking pig. Yes the IVA diet is a defo success!!!

[tommyc]

Hi Melanie

Thanks for that, I will get some proper advice.

Just one question though - would I be able to include my payday loan in an IVA?

Thankyou

[apple2]

I am including a quick quid loan in IVA. I'm pretty sure they are the same type of company and I have been advised it is ok. As I found them on the web - i thought they may be some kind of loan shark and got really worried. However - have also been advised that they are recognised companies - just ones that charge ridiculous interest rates.

[Soulgrowth]

Hi Tommy ... just wanted to say welcome to the Forum ... and it's good to be ahead of the situation and look at ways of dealing with your debt before it becomes completely unemanageable and you feel totally out of control. With a new little on the way perhaps now is the time to take control again and have a better future to look forward to instead of continuing in a situation of robbing Peter to pay Paul (where most of us have been at one time or another [:(]).

You could do a lot worse than to make a phone call tomorrow to Melanie's team [:)]

All the best ... and keep in touch with the Forum to let us know how you get on.

Debbie

[MelanieGiles]

Yes - those types of loan can and should be included in the IVA proposal.

[drowning-mummy]

Also Tommy, once you have spoken to an IP, you will find that the I&E sheet you do together is ten times better than one that you do yourself. With their experience, they will mention things that you have not even thought of! It is kept realistic, and as Melanie says £250 is not! Dont forget all those nappies, wipes and cream. I know that because I too said £250.
Once this has been realised then you will know if you are in a postion to enter into an IVA. We realised that we were not (too poor) and are now going down the BR route (house in negative equity, so should keep, may lose the car).
My other piece of advice would be to read, read, read!!!! These forums are invaluable.

[tommyc]

Hi everyone,

I haven't posted since I first joined a couple of months ago but I constantly log on and read the posts - I have found it incredibly useful and comforting to know that are other people in a similar situation to me!

I thought it would be a good idea to let everyone know that I decided to go for an IVA. The good news is that my meeting was held last Wednesday and my proposal was approved!!

I was very worried as one of my largest creditors was MBNA (just over 25%). In the end they voted yes, and the largest creditor (Citifinancial) didn't vote at all.

According to my IP, MBNA turned down a very similar proposal to mine a few days previously and apparently "it's a lottery" with MBNA at the moment.

It still seems too good to be true and I keep expecting my IP to phone and say it was all a mistake.... I am actually looking forward to seeing my name on the Insolvency Register so I know its real!

My other good news is that my family did become five (see below) 3 weeks ago!

The first payment is due out on the 18th and I'm looking forward to it - I can't wait to be debt free.

Thank you all very much.

Tom

[Viki.W]

Oh my goodness Tom, that was so fast. Congratulations on a brilliant result. Also a big congrats for your new baby, was it a boy or girl? Please keep posting, you'll get great support here.[:)]
X

[moretolife]

hi tommy...it is great to read your post....it really shows the value of the forum and the advice and support given...
in june you posted and asked for advice...which you obviously took on board and did something about your situation...
and then you post to say it is all done and your IVA is up and running....
a real accolade to both yourself and the forum support

and congrats re new addition to family

[tommyc]

Hi Viki.W

It was a boy - we've got three boys now! Lots of sleepness nights, but not like the sleepness nights I used to have!!

[Viki.W]

Ah Tom, that's lovely. HaHa, I bet your sleepless nights are so different now that you're on the road to being debt free. Give that little one a big kiss from me.[:)] X