Hi there. I am a newby to this. Basically my Husband and I are in the process of getting advise about an IVA. We have debts together on loans and credit totalling over £30,000, plus we have one of the wonderful Northern Rock Together mortgages of which approx £30k is an unsecured loan. We both have good jobs and always lived above our means then bang 2.5 years ago after one shot at IVF I have twins (best thing in the world) and then last October I got pregnant naturally (unplanned). So we have 3 babies under 3. I am on maternity leave at the moment but we are considering me not going back because our child care costs are likely to be impossible. This is why we are considering the IVA but also because we are struggling terribly, every month we are maxing the overdraft, the house is not being paid off as we are mainly on an interest only term and unlike once upon a time when we could increase a credit card limit etc, now we must try and live to our means! Anyway, I would like to ask please about the NRAM together mortages. Am I right in thinking that the unsecured element forms part of the IVA? If this is the case then I assume they readjust the mortgage amount (secured). We are in negative equity so this indeed also gives me some hope that in 5 years we will be in a position debt free (of course if IVA agreed) to start chipping away at this.
An IVA may well be a sensible solution for you to consider, and the unsecured element of NRAM loan will bne included - although be aware that they will likely want the IVA to run over a six year period if there are more than six years still to pay on the loan.
Your standing order to NRAM will need to be amended, because you will no longer be paying the unsecured element to them directly, instead it will be included as part of your disposable income for all creditors to share.
I definately don't blame you for not wanting to go back to work - those little ones must leave you exhausted by the end of the day!
If you're considering an IVA you could always take a look at www.iva.com for a list of comparable compaies. Advisable to talk to 2 or 3 companies just to compare and you'll know when you've found the right one to act for you.
All the best and I can imagine you've your handful with your children, I have two year old twin grandsons and they keep me on my toes.
All the best x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Welcome to the forum .... You certainly have your hands fall and no-one can blame you for considering your options and taking action to secure the future of your family finances !
www.iva.com is a good comparison site to use as a starting point... A number of IP's post on the forum and come highly recommended...
Keep posting on the forum and we will offer you support at everu juncture !
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Don't blame you for not wanting to go back to work - I certainly couldn't cope with three small kids and being out all day!!!!
The link posted above is a good place to start or you could contact one of the experts who post on here - their contact details can be found via the 'Ask a Question' link on the lefthand side of the page,
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
Hello everyone, thanks for such a warm welcome. I am finding my way on here and I think I will contact one of the experts as advised. It already feels a weight lifted to have someone to talk to!
Il be honest I am very undecided what to do re work. I have a fantastic job and my employer has been so good in allowing me to do 3 days when I go back, but still I am feeling with 3 little ones under 3 its going to be impossible for me.
I have already been to the CAB who were helpful (I do find this site better suited to me though and more informative. I have a few questions and wondered if anyone can advise? If I need to be posting to an expert though, sorry - I can do that.
1. I also have HP on a couch and my car. I need both! I a two years into paying for both on a 5 year period. Do I have to declare this as unsecured borrowig, or can I keep these as part of my 'essential items' and once paid off include in the disposable part of the IVA?
2. I have roughly calculated that based on just my Husbands salary and then my tax credits and child benefit we would clear around £2300 a month net. Our secured part of the NRAM mortgage is around £600 IO as the unsecured amount I assume then forms part of the pay which is distributed amongst creditors. With all our ''essential'' items out this leaves about £400 I could pay to the creditors. I am concerned that we are looking at doing an IVA for about £50k. Surely £400 a month will be frowned upon?? I know, no one can say, I need professional advice but am I barking up the wrong tree here?
3. My plan, once the IVA is finished would be to get myself into some kind of employment ideally term time so I can be there for my three Children who shall then be school age. If we were lucky enough to be in a position then to remortgage then I am assuming we may not get high street deals, plus, as my earnings will have dropped are mortgage providers obliged not to offer the amount you need ie based on earnings? Surely people's earnings do change from the point of taking a mortgage out, kids etc...?
I am sorry to ask so many questions and maybe I need to ask an expert! Just one final question and I don't want this to come across as greed! I am pursuing at the moment a claim against HSBC for mis sold payment protection on my credit card. If we pursue the IVA before I get a response, can they use this against what I owe, or is it different if compensation?
I do like the sound of the IVA, mainly because I can see a debt free future in 6 years and for me with this mammoth mortgage, if we continue as we are, nothing shall be paid off in 6 years! plus if we go down the route of being able to do the IVA and live based on Husbands earnings I can bring my babies up at home.
Hi, gosh 3 under 3 i take my hat off to you! I have 2 under 2's at the moment my eldest is 18 months old and the youngest is 2 months old. We have been in an IVA since my eldest was 6 weeks old.....i am also in the same boat regarding work. My job is full time and i have been told i cannot return to work part time and as i have no-one (apart from maybe 2 days a week) to look after them they would have to go to nursery and those fees plus my train fare would leave no money for anything else [:(] I am trying not to worry and just keep looking for a more suitable job with better hours but nothing as yet! I am on maternity pay until March...then i really dont know! Have a chat with some firms and good luck with whatever you decide to do xx
Started IVA May 2010 - 17 months done 43 months to go to a happier debt free life - big lesson learnt!
As regards your sofa - no worries there as the HP will be included in the IVA and they are highly unlikely to come and take it back!! The car payments can usually be continued alongside the IVA with the proviso that when they are finished the money is tne paid across to the creditors.
Your IVA is based upon affordability and if £400 is what you can offer then you may well be ok but only an expert will be able to say for certain once they have gone through everything with you.
You're unlikely to be able to get a new mortgage for a while anyway once completed and at the moment you'd need a hefty deposit and it would be at a higher interest rate but of course who knows how things are going to change?
The misselling payout, if you get one and are in the IVA will either be taken by HSBC to offset against their debt, or will be paid across to the IVA. Either way, the creditors will get a better return.
Do pick up the phone though and have a chat.
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
The only thing I would be slightly concerned about is if you give up work, your creditors may ask you to provide proof of why you need a car, normally as Jan says HP can run alongside your IVA so long as it leaves enough disposable income for IVA payments, and obviously if you are working, you can easily argue you need a car to get to work, so this may be something you would need to argue to keep
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
