can't get professional studies loan, so much debt

[wheresdave]

I'm thinking about whether to get an IVA before starting university. If i get in I'll be entitled to a professional studies loan also. Its to study medicine but i can't get a professional studies loan with so much debt!
Vicious circle!
Regards
David

[MelanieGiles]

Hi wheresdave

Can I be personal and ask you how old you are and how much you owe to unsecured creditors?

Who would be the provider of a professional studies loan? The Student Loan company or a bank. There would be no problem for me if you were to be able to source a Student Loan, as these are outside IVA proceedings and would not need to be repaid until you started earning. As medicine is a 7 year course (I think), your IVA would have completed by the time you graduate.

How would you propose to fund the IVA - monthly contributions (if so from what income) or a lump sum payment?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[wheresdave]

Hi Melanie
I'm 29, applying to do graduate medicine which is a 4 year course. I owe 19,500 on credit cards. Professional studies loan is provided by one of the high street banks. I may not need much of it depending how the course goes. I'll also be entitled to NHS bursaries, need to check about student loan company. I'd be able to pay my IVA payments from money earned by tutoring/working part time. What would the repayments be on 19,500. I may also be able to pay a lump sum to start with.
Look forward to hearing from you
Dave

[MelanieGiles]

Dave

Your debts are quite low in the great big scheme of things (they probably don't feel that way to you!).

If you were to do a lump sum (assuming you have no debts with HSBC or Northern Rock), expect to offer approximately £10,000. This would then remove all of the debts forever, so long as creditors accepted the offer.

There would then, technically, be no problem in you applying for a studies related loan, but your credit rating may well be impaired and this could prove difficult by going to the high street. In this instance I would strongly recommend you approach the Student Loans company.

If you were basing an IVA upon contributions, expect to pay approximately £200 per month - but a lot of IP's will only take cases on where there are minimum contributions of £250 or more so do shop around.

Where would the lump sum be coming from?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[123debtsolutions]

Is an IVA the best choice though??

I would need more information on your Income & Expenditure and of course further info on the creditors but I wouldn't necessarily say that an IVA was most suitable for your personal circumstances.

Feel free to post more info or alternatively arrange an assessment to determine what solution is best suited.

Regards

Lee
www.123debtsolutions.co.uk - 08000 114 123

[wheresdave]

I could not offer 10,000 lump sum, I was thinking a lump sum followed by regular payments, then I would only manage 2000. creditors are egg halifax about 10k on each. Egg is currently interest free and halifax is charging about 200 a month!! I've just been refused 2 new credit cards, I was hoping to transfer to an interest free one.

My income at the moment is 18,000 though I'm currently looking for better pay. my expenditure is faiorly low, I'm been trying to pay about 600 a month off to my cards and could easily manage that for the next 6 months.
Thanks for your help
Dave

[MelanieGiles]

As you only have two creditors I do not think an IVA is a solution for you.

Egg and Halifax will expect you to make ongoing payments to them directly, and as you can afford to pay £600 per month you should not really be having problems at all. Indeed I doubt whether you are insolvent at all.

My advice is pay as much as you can afford off whilst you are still workintg, to reduce the debts as much as possible before you start your studies.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk