just about to sign up

[reception]

I am just about to sign up for what I thought was an iva with a company called Clear Financial Solutions. However my debt is only £4000 so maybe it is not an IVA, though it sounds similar. I would like to do some research before I sign up but do not know the name of my type of arrangement. Any ideas?

[MelanieGiles]

Hi reception

It will certainly not be an IVA if you only have debts of £4,000. I imagine that you are going to be proposing a Debt Mangement Programme, but are you sure that you need the assistance of a third party if your debts are so low? How much will you be paying each month and how many creditors are there in number?

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

Appoint me as your IP:
http://www.melaniegiles.com/ivaEnquiry.asp

[reception]

Hi reception

It will certainly not be an IVA if you only have debts of £4,000. I imagine that you are going to be proposing a Debt Mangement Programme, but are you sure that you need the assistance of a third party if your debts are so low? How much will you be paying each month and how many creditors are there in number?

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

Appoint me as your IP:
http://www.melaniegiles.com/ivaEnquiry.asp

[reception]

Thanks for your reply to my posting on 3rd Sept 07, Melanie. Yes,I think it is indeed a Debt Management programme which is meant to be a solution for me. It is expensive, with me paying £120 a month and only £80 of it going to my creditors. When I checked again, it turns out my debt is actually only £3,350.00. One creditor is a credit card and the other is a store card. Could I, as an individual, negociate with the creditors? What I really need is for them to freeze the account because the interest etc makes it impossible for me pay the debts off.

[ray_a]

Hi Reception

with the amount involved I would talk to them and try and get a proposal and negotiate with them.

It might be worth trying to get a consolidating loan and pay it off over 5 years as the repayments would be low and be able to fit into your cash flow.

However saying that you must learn the lesson and please promise me that you will destroy that bit of plastic. Believe me it is one of the most dangerous objects on this living planet!

If you have an overdraft reduce it to £250.00 and learn to live within your means.
I suggest you get in touch with Cash Plus Mastercard and place funds in there so that you can use the card to make purchases. There is an initial fee of £10.00 and a small monthly charge of £4.95. It is the same as a credit card.

Sorry if I am harsh but when you see the stories and my experience you will find that life will be a lot easier for you! Trust Me!

Good Luck

[Adam Davies]

Hi Reception
Just hold fire for a few days.
£40 out £120 is ridiculous and coul be going to your creditors.
You have two creditors and owe £3350,try and write to each one and supply a detailed income and expenditure form.Ask them to freeze interest for six months and to accept a set amount[I suggest paying them 5% of what you owe,£117 in total]After six months the debt will be down to £2650 and you can negotiate again.If you maintain the payments at £117 you will be clear in just over two years.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[lily]

Hello and welcome.

I would advise what andy has suggested, write to the creditors and suggest a repayment schedule, include your resasons for struggling and your income and expenditure. Send them by RECORDED POST as they have a 'habbit' of not being ansered or getting lost.

If you are bombarded by calls from the creditors, remember that the people on the phone are paid to extract as much money in one payment as they can. They will not listen to reason and are not the ones making the decisions, they also threaten everything and they cause stress. Stick to your guns as they are all talk.

If you have debts with your current bank then it might be an idea to open another basic account as your bank have a right of offset any debts with them.

I do believe that Myvesta offer a free debt management programme and may be able to help if going it alone is proving difficult. You pay them a set amount and they distribute to creditors pro rata. www.myvesta.org.uk

Good luck, if we can help you with anything please feel free to post again.

lily