Hi, I'm currently agonising about whether to apply for an IVA or struggle on for the next 17 years with a DMP and could really use some advice from those who have been through the process. I'm 27k in debt plus a 9k student loan (in aware this cannot be included in the IVA) and i have no assets. an IVA would be the cheapest and quickest way to get out of debt. I have been in debt since the age of 18, I can't remember a time in my life I haven't been in debt and i just got used to it i suppose, it felt 'normal' to me ive sonehow managed to service the debt but it has meant living with friends or various boyfriends and never having a place of my own. Im ashamed to say it but i guess i always thought i would meet someone who would take care of me. I'm 34 now and my partner has recently left me. Leaving me now having to manage rent payment, living costs and paying back my debts. I can't manage and need to take action and after getting advice from various places, including this forum, its looking like an IVA is the best option. I am so worried however about what life will be like with an IVA. What it will be like to have no credit rating and if anyone will ever get involved with someone with this in their past and if I don't meet anyone , never being able to buy a house on my own. Am I being too negative? Is it really bad? It's just do hard facing this alone
Without knowing every detail I can only give general advice and it is this:
If you have no assets, have you looked at BR ? If that is out then an IVA would seem the more sensible option than 17 plus years on a DMP ( which actually might be never ending in reality).
Credit rating post IVA ? Well, it iwll be far healthier than the one you will have after all the defaults stack up on a DMP --- as will your chances of buying a house in the future. Many ex-iva'ers have mangaed to buy.
Relationships ? -- If a prospective partner is put right off by an IVA they are not worth expending the energy on! A prospective partner should be looking at YOU, not your financial history.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi! Your story is similar to mine. I'm 33 now and have been in debt since I got my first credit card at university when I was just turned 19. They were giving them away like sweeties at freshers' week!! We even have a similar level of debt.
I went into an iva because after I left home, I was living in London alone and realised I had no life and no chance of a life because I couldn't afford the Oyster fare to meet up with friends, let alone have a drink or a meal!
Enough was enough and I Chose an iva because I needed to get a life and move on from my mistakes. An iva offered me protection from my creditors and a timeline to work towards. A DMP didn't offer either of those and the thought of being in debt indefinitely just didn't appeal to me.
I don't normally like to try and sway posters one way or another but as we were in near identical situations for what it's worth, my overriding thought was that I lost my twenties to debt and I wasn't going to carry on losing the best years of my life to it. The iva means that in a few years, I will be able to afford nice holidays, own a home of my own and have the money to enjoy life.
Sorry for the long winded answer!
Whatever you decide will be what is best for you. x
Thanks BOL, that's exactly how I feel about my 20's - and like you, I feel like I can't go on like this. Have you found your IVA has had many repercussions? What difficulties have you experienced because of it? Do you think your life has changed for the better since making the decision? Have you found it easy to rent and has it impacted on any of your relationships?
Hi! I don't know how to do clever things on the forum like frugal friends but would be happy to chat offline if someone can put us in touch. Im on my iPhone at the mo and huge asked a few big questions so as soon as i get a turn on my boyfriend's iPad, I'll answer you properly Charlieo!!
Hi Lesley and BOL. Thanks so much, BOL, am going to try the frugal friends thing to see if I can add you! I know, sorry about that, loads of questions but so nice to find someone who's been in a similar situation x
My life is infinitely better since being in an iva. I have more money in my pocket, I can sleep soundly at night and even in the lean months I can look forward to a more financially secure future; without the iva I would have been treading water indefinitely and would never have had the willpower to stop myself living off credit.
I do rent and was lucky in so far as I found a nice agent who agreed to waive the credit check if I could get a guarantor. Lots of posters rent and while it is more difficult in an is, it is possible.
The iva doesn't have a lot of repercussions . It is difficult adjusting to life without credit, but this is a lesson we are supposed to learn! Renting, as I said, can take a bit more effort. As can sourcing pay monthly insurance...but none of these things is insurmountable.
My biggest worry was how the iva would impact on me being able to get a mortgage in the future...turns out this won't be insurmountable either!! And to be honest, my credit rating was so bad and level of debt so high that I wouldn't have got a mortgage anyway. Ironically, an iva was the quickest way for me to become mortgage-worthy LOL!!!
I have been in a relationship for nearly six years and occasionally my lack of cash does cause problems, but the vast majority of time my boyfriend is supportive emotionally and financially. I realise I am very lucky in that regard, but you are more than your debts and anyone lucky enough to be with you should see beyond them. I've promised him an exotic holiday on me when I finish!!! [:)]
All debt solutions have positives and negative, but for me, time was crucial. I had been in debt long enough and wanted out. I needed to draw a line under that part of my life to move forward. BR would have been quicker, but I could afford to pay more ack than that and felt I should. But again, that was a personal decision to me and having spent a lot of time on this forum, you come to realise that there are good reason for choosing BR so you can move on even more quickly. Don't rule it out without giving it serious consideration.
We are certainly happy that we entered into our IVA. If we hadn't then one or both of us would have been pushing up the daisies before our DMP would have finished and we would like to spend some quality time together with no debts once we are both retired.
We are certainly happy that we entered into our IVA. If we hadn't then one or both of us would have been pushing up the daisies before our DMP would have finished and we would like to spend some quality time together with no debts once we are both retired.
I guess the thing that's troubling me most about the IVA is the fact that it's insolvency. I know the DMP and defaults would stay on my credit file as long as an IVA but it's just that box that you see that says 'have you ever......' I suppose Im worried about the possible implications for the future. Like you BOL, I'd like to pay something back to my creditors, although I do have issue about the banks lend so irresponsibly and the massive amounts of profit they make. I suppose no one knows what will happen in the future though and I can't go on living the way that I have. The stress of having these debts is enormous! BOL, you are lucky to have a suportive partner and i guess youre right about meeting someone, if they are put off by the IVA then theyre probably not worth it anyway. Thanks for all your help and advice. I think I am going to go for an IVA. The IP ive spoken to is on holiday next week so I guess it will take some time to sort out but will keep you all posted and will be using the forum as a constant resource over the next few weeks! Cxx
