www.iva.co.uk

I'm up to date with all of my creditors (except one CC payment was bounced back yesterday) but my current account is taking a real hammering.

I've phoned a couple of IPs and the CCCS and arranged appointments for the back end of next week and beyond.

In the meantime, I have two current accounts with overdrafts- one for my wages and most of the bills and one for my wife's wages and the rest of the bills.They are £300 & £500 overlimit and I don't have any money right now to put that right. I also got a letter this morning listing £200 in charges across the two accounts which will be taken 3 days before I get paid. at the end of the month.

My plan is to phone HSBC and ask to have the charges removed in order to help me get back on track first - failing that at least put them back until after I get paid.

I have an old Barclays account (they're not a creditor) and I'm going to see if I can get my BACS settings altered with my employer and once I get paid, put most of the money back in to clear my over-overdraft and pay the priority bills. I would also like to pay a token £1 to each of my credit/store card creditors along with a letter stating that I am seeking professional assistance. (I want to carry on paying my mortgage and personal loan at the full amount, no HP or other debts)

I've missed one CC repayment with 1 card this month (HSBC again, and already on a payment plan), but the rest are up to date - it is only the current accounts that are taking the hammering at the minute.

Does that sound like a reasonable plan? All the people I spoke to on the phone seemed to be there for data entry and appointment generating rather than advice...

You do need to pay your priority debts over and above the others otherwise you could run the risk of losing your house.

You should arrange to have your money across to Barclays. Is your wife looking at an IVA as well? If so, she will need to change accounts.

If you clear your overdraft, are you going to have enough money to live on for the month?

You can speak to HSBC, although I didn't find them sympathetic. You can also make token payments, but these should be pro rata.

As you are talking to IP's next week, take advice from them and if you do decide that an IVA is right for you then make sure you are happy with who you choose.

Any overdraft could be included in an iva so get your pays sent to your old barclays account and use that for now(as long as you dont owe barclays any money)

We're looking at a joint IVA or DMP (my gut says DMP but I'm prepared to listen to advisors and also you lot). I'm intending to pay off the total overdraft immediately, but the over-over-draft would be nice. I'm currently paying >£600 on CCs and Store cards alone so if I can switch that to 9x £1 tokens that frees up a lot of cash to try and clear the overdraft. Is that being unfair to the other creditors though?

Having been on the phone to Barclays I can make the account joint tomorrow at the branch and I'll get the BACS sorted out for both of us ASAP.

Happy days, eh?

You should treat all creditors equally but if it suits you to pay off the overdraft then do so.

HSBC created an overdraft themeselves and then charged me for an "unauthorised overdraft". Best of luck to you if you can get them to help.

elv5 wrote:

HSBC created an overdraft themeselves and then charged me for an "unauthorised overdraft". Best of luck to you if you can get them to help.

Heh! I'm not expecting any help from them whatsoever - worth a pleading phone call though.

Cheers all.

Hi
Why try and clear your overdrafts ?
I would sort out the other account and use that from now on. The overdrafts can be included in whatever solution you use
Regards

You should treat all creditors fairly and equually, use your bank account with Barclays to receive your salary and pay your bills, and take proper professional advice from an insolvency practitioner at the earliest opportunity.

It sounds to me as if you already have most of this in hand, so well done!

andydavie wrote:

Hi
Why try and clear your overdrafts ?
I would sort out the other account and use that from now on. The overdrafts can be included in whatever solution you use
Regards

My immediate aim is not to clear my overdrafts but my over limit amounts that have cost me £200 of charges in the last month and will likely continue to do so. If it takes 2 months to sort out an IVA or DPM then that's an additional £400 of debt that I would rather not add.

It seems to me that what you are proposing for yourself is not right.

You, as Melanie says need proper professional advice.

You have mentioned that you and your wife are considering a joint IVA (probably single but interlocking).

I would transfer your wages and those of your wife's to the account that is not overdrawn.

All other debts that your wife and you have can be dealt with by either an IVA/DMP whatever is the most appropriate advice given by an IP.

As mentioned you need to have a chat with an IP and give him/her details of all your personal(and your wife's)financial circumstances and particulars.

Visit www.iva.com for reviews on firms and practitioners and select one or two to have a chat with. They will give you
the most appropriate advice and it is free.