Hello to everyone, sorry for the long post but I am new user.
I have been struggling with my debts now for some time, since recently losing my job I have decided that I need to do something about them. Lucky I have been able to find a new job although the pay is much less than I was on before. With this in mind in means that I no would no longer be able to meet my payments and live at the same time.
Over the past few weeks I have been using this forum along with others to find the best solution for my debts. I have come to the conclusion that an IVA would be the best option. I have looked at DMP's and bankruptcy but feel they would not be suitable for me. So I am hoping to put together a IVA, and I am currently looking at reviews for the best IP to do this for me. Although I have a few questions that I hope somebody can help me with.
My debts are a personal loan and 2 credits cards which total 19,000. Along side this I also have payday loans with 3 providers. It is the payday loans that are currently casing me the most worries. Since I bank with Natwest and have no debts with them, I am hoping to keep this account open. As I have access to online banking and a Visa debit card. With my personal loan and credits cards I understand that I can cancel my direct debits. But the payday loan company hold cheques and my bank card details, so if i was to stop rolling-over they would be able to go to my bank direct. What would be the best way to deal with this situation? At the moment it is costing me 300 a month just to rollover which is something I can no longer afford. I have thought about canceling the cheques with the bank, but is this possible? I believe that they also can use my debit card details to get access to the money.
If the only way to avoid this would be change bank account, could you tell me which would be the best bank to have an account with in a IVA. The reason I ask this is I would like to have access to online banking and a visa/master-card debit card. I cash card only would make life very hard. As I very rarely use cash when buying things. I have seen posts saying that prepiad cards can be used, but transactions cost can be quite large on these. Keeping a debit card would be very useful for me.
I understand that this is a lot to take in and my questions my seem simple to answer.. But I am trying to make sure that I cover everything before I make up my mind on the final cause of action that I take on my debits.
Thank you all for taking the time to read and I look forward to your reply’s.
Interesting post. Welcome to IVA.co.uk forum. Your making a good start here and sounds like your on the right course. I recently set up an IVA and it was the best thing I've done in my entire life. It puts you on a plan that will eventually leave you debt free.
Not sure about your payday loans and whether you could cancel cheques with bank. However my advice would be to visit www.IVA.com and speak with a few recommended IVA firms. I'm with RE!0 and they have been great. You will need to set aside 45 mins or so whilst they go thru your situation and income & expenditure details. They may also be able to advise on your particular situation.
I'm also with NATWEST but went with them pre IVA as i had debts with my Lloyds account. Coop comes recommended I believe. Avoid HSBC and First Direct as they will eventually close your account.
Hi and welcome! The payday loans companies could take the money using your debit card details so switching accounts would be a good idea. You just need to avoid any bank linked to your creditors, HSBC and First Direct. I have a current account with Lloyds and they have been great x
Get in contact with MelanieGiles. She is great.
IVA saved my life
Don't be afraid of it.
Most improtant.
Write to all your creditors to put holds on the acounts because you are gettng advice on resolving your debt. Send recorded, keep copies.
Good luck
F&F accepted Feb 2011
Live in the moment.
Living in the future in your head means you live on fantasy and fear!
I do agree that payday loans will keep taking money from your account before you are accepted for an IVA. The Co-op come highly recommended by posters on here and you will get a debit card.
If you apply prior to an IVA with any bank not associated with your creditors then you may be able to open up another full account.
Do visit www.iva.com for a full list of companies and reviews. The companies on there are excellent and you will receive free and impartial advice as to all the options open to you.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi - well done for taking the 1st step to an IVA. It is the most difficult step - I know - I am at the proposal stage now and everything feels so much calmer and I am not as stressed as when I was trying to pay our debts.
You are doing the right thing taking time to select the right company. It's a 5 or 6 year relationship so needs to feel right.
I opened a cashminder co-op account. I bank on-line and it's fine - just a bit slow at showing debits. As long as you keep track yourself of the balance, it's pretty much perfect. This account can only be opened by phone or in a branch. You can deposit money through the Post Office so no probs if you don't have a branch nearby (ours is 40 miles away).
If you move any money from your Nat West maybe they will refuse the cheques once you hit the overdraft limit?
Please do as other have said and avoid HSBC and First Direct, they trawl the register and close anyone in an IVA.
I rarely use Nationwide branch - most of my stuff is online or cash via the ATM.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Since they have your debit card details - they can use automatic card payments (which the bank cannot cancel - (you have to contact the company direct). You need to lose both the debit card and account by reporting them missing. Even by closing the account the payments will still be processed under automatic card payments.
Last edited by ginger3232 on Sat May 28, 2011 3:38 pm, edited 1 time in total.
Never done mobile banking, it's always online for me. I check a couple of times a week to make sure everything is going ok.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I wouldn't like doing it over the phone - computer I have no problems with as I have that much security on there it's untrue!
Not so with the mobile though.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I opened a bank account before i applied for my IVA so I have a visa debit card which I prefer as I do a lot of shopping online, I would struggle with cash only.
Addressing my debts is the best thing I ever did, I have applied for an IVA now, and it is a relief. I can't help with the other stuff I'm afraid I don't know enough about everything yet!
"It is never too late to be what you might have been"
Fiona
My Nationwide account was originally a cashcard only account. It now has a debit card and it's great! I've not found anywhere yet that has refused it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
