hi, everybody. I am new here and wouyld like to ask for an advice.i have an unsecured debt of 42K. I got a stable job,but my husband was been made redundant twice since 2007 and I ended up shouldering all the expenses, and I used my credit cards and loans for our living expenses then I had a baby. I managed to maintain the payments to the 6 companies I owed, 2 mbna credit cards(cc), 1 halifax cc, 1 barclay cc,1 natwest cc, natwest loan and overdraft. I'm really struggling. I just paid £20 each crditors this month as I cant afford the minimum and i ahve been receiving calls and mails.what are my options? I am thinking of IVA but don't know where to start.My bank account where my salary goes is natwest. do i need to switch account? please help. I am losing sleep,appetite and alwaysthninking about my debt, my realtionship with my husband is affected. thank you soooo much.
Last edited by tonetski827 on Tue Jun 30, 2009 3:43 pm, edited 1 time in total.
...THE BORROWER BECOMES THE LENDER'S SLAVE. PROVERBS 22:7
________________________
Finally, I got the courage to face my debt problem.
You've taken that first important step in realising that you need help with your finances. We've all done the robbing peter to pay paul and in the end it has to stop.
If you visit www.iva.com you will find a list of Insolvency Companies with reviews about them. Give one or two a ring and you will receive free and impartial advice as to all the options open to you and the best way forward for your circumstances.
As far as the bank goes, are they one of your creditors? If so, then you need to open an account as soon as possible. The Co-op Cashminder account comes highly recommended by posters on here. You can open one either on the phone or in a branch.
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
First of all you have not done anything wrong and your situation can be resolved. Opening a new bank account is a very good idea as you eant to prioritise your expenditure but also protect your wages, child benefit and tax credits. This is good advice regardless of whether you enter an IVA, a DMP or petition for bankruptcy.
You should contact at least one IP firm for advice as it free, without obligation and you do not even have to give your real name. Thousands of people go insolvent each month for the same reasons as you so you are by no means on your own and there is help available.
You have made a great start by using this forum for advice.
Is this the 1st month you have been paying the £20 to creditors? Do you own property with any equity in it?
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Hi - I was in the same position - the stress just gets too much eventually.
I spent a couple of weeks reading everyone else's posts on here before I made the decision. Once I had, I felt like a load had been lifted. I slept the whole night through for the first time in ages... a real luxury when you know you've got work the following day!
Whatever you decide - and it is a personal decision, everyone on here will rally around to help you. It certainly helped me. Good Luck.
The best thing I ever did - at last I'm in control!
You will need to open an account with a bank that isn't one of your creditors.
Check out the link from Kallis and ring a few companies to get some professional help.
There really is light at the end of the tunnel and you are making you first steps towards it.
By far the best basic bank account, which is usually guaranteed acceptance is the Co-op. Yorkshire Bank is another good one.
Make sure that whatever bank you choose is not linked to any of your creditors.
I wouldn't touch HSBC or First Direct either as they will close the account down once you enter an IVA.
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
THANK YOU VERY MUCH FOR ALL YOUR ADVICE, YES, THIS IS THE FIRST TIME THAT I MISSED A PAYMENT/MADE PAYMENT LESS THAN MINIMUM.WE DON'T OWN A HOUSE.I GOT AN APPOINTMENT TO OPEN A COOP BANK ACCOUNT TODAY.WHAT WILL I DO WITH MY NATWEST LOAN?IT COMES OUT STRAIGHT ON EVERY 1ST OF THE MONTH, AND I GET PAID ON THE 28TH . DO I NEED TO ASK THE BANK TO STOP IT, TELL THE BANK OF MY SITUATION AND MAKE A PAYMENT I CAN AFFORD?WHEN I TOLD MBNA OF MY SITUATION, THEY COULDNT BELIEVE IT AS I MAINTAINED THE PAYMENTS BEFORE. IT MIGHT HAPPEN TO NATWEST, THEY MIGHT NOT BELIEVE ME AS THEY GOT ALL THE DETAILS OF MY ACCOUNT , MY DEBIT AND CREDITS ALTHOUGH I AM ON Y MAXIMUM OVERLIMIT EVERY MONTH. I WILL TRY TO RING IP TODAY.
...THE BORROWER BECOMES THE LENDER'S SLAVE. PROVERBS 22:7
________________________
Finally, I got the courage to face my debt problem.
It is highly unlikely that you will be able to stop Nat West from taking the money for the loan this month. Ensure that from next month your wages are paid into the new account to protect yourself. Say nothing to Nat West at this stage as they would almost certainly cancel any overdraft facility you have and this would affect your rent, council tax, food bills etc. Your IP will advise further on all the pros and cons.
I agree. As a rule of thumb, I usually advise clients to leave the old account as it would be the day before you get paid. If that means it is running an overdraft up to its limit then so be it. In reality, all an overdraft is is a loan by another name anyway. Michael is correct in that the old bank will not allow an internal loan payment to be cancelled by you, and in all likelihood the loan will be taken at least once more, probably twice. If your money is elsewhere though it makes no difference whatsoever as they are in effect paying themselves with their own money. You will end up with a lesser loan balance but a higher overdraft balance and in all probability some extra charges. If IVA is the appropriate solution then that matters not a jot either as you would still only pay it for the same amount of time and whatever is left is then written off.
Hope this helps, and don't hesitate to post more if you have any further problems or worries.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Hi tonet welcome and just reiterate what everyone else has said, i so wish i had found this site before i entered my IVA as it has been invaluable to be honest, supportive to the core and the advice that people like melanie, andy and david offer freely is very welcome and to be honest very comforting. I wish you well this will be a big decision but probably one of the best ones you will make.
Good luck and be safe.
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.
IVA COMPLETED August 2012, received Completion certificate 18.4.13.
Most of my clients tell me that the worst bit of the process is actually finding the courage to pick up the phone in the first place and admit to a stranger that you are having problems. But please don't worry about this as insolvency practitioners are here to help and give you advice about all of the options available to you, and not just the IVA.
Life will soon seem far more rosy, once you have taken advice and decided on a recovery plan. And your chosen IP will guide you every step of the way.
I went to Coop bank and tried to open a basic current account but I was referred.The lady will ring me once a decision has been made. If not succesful, I will just open a basic cashminder account as have been advised in these forum. I just need to find other ways of paying bills aside from issuing cheques. Before I found these forum, I was receiving advice from CCCS.I completed online the debt remedy paln with incomes and expenses and spoke to a guy in the phone. I was given options and I decided to go to for IVA. I was referred to another person, maybe an IVA advisor or IP and will be in touch very soon. Are the CCCS people good with IVA? any advice? Hopefully, i will start ringing IP's this week. I just don't have the courage last week and I would like to know more about IVA and people's experiences. and these forum is extremely helpful and informative. so what will I do now with my creditors? i know I need to inform them ,but how soon,and what information I will give them. Can I pay them the amount I can only afford?thank you so much for even spending time listening to me.
...THE BORROWER BECOMES THE LENDER'S SLAVE. PROVERBS 22:7
________________________
Finally, I got the courage to face my debt problem.
Try not to panic! The most important thing at the moment is for you to get some advice from an IP that is personal to your situation. You have probably already heard/seen that Melanie Giles and David Mond are IP's who post on here regularly. Also Andie Davie and Michael People's are fantastic advisers. I had to go BR nearly 2 weeks ago, and that was following looking into an IVA with Melanie Giles. Her staff are fantastic and from the first phone call with Tina I knew what I had to do. Any questions I had were answered. Once things were underway I wrote to all of my creditors - the same standard letter explaining I was looking into an IVA and the company name and details of my IP. I also sent each creditor a £5 cheque - you must not favour one over the other so they all have to have the same. Once an IP is involved the company will also write to your creditors explaining their involvement which will hopefully give you some space and time to get things organised with your IVA.
There are really good people out there who will help you. As soon as you make that call you will feel so much better that you are getting some help and are not alone. Also Co-op Cashminder Account I was accepted for last week - they are great the Co-op.
Have a really good day.
Poppyfairy [:)]
There's an old zen saying 'Only an empty bowl can be filled'. It means that the moment you think you have nothing left is the moment when growth and progress become inevitable. Everytime you see an empty bowl, think of the potential.
CCCS get mixed reviews on here - however I can second what poppyfairy has said.
The IP's/advisors who post on here have really great reviews and you could do worse than ring one of them.
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
