Am I doing the rite thing IVA

Jason5354
Jason5354 Posts: 5 Forumite
in Debt-free wannabe
I am currently looking into getting an IVA set up,
My income is £800 a month
And paying out £400 a month in credit cards and catalogue.
After bills I'm left with around £20 a week.

I'm not sure I'm doing the rite thing, it would take me 11+ yrs to pay off all debts that's not including interest.

I'm looking for advice and peoples good/bad experiance with IVAs.
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Comments

  • sourcrates
    sourcrates Posts: 28,834 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    Hi,

    Impossible to say without knowing more information.

    IVA's are usually only suitable for large debts, 30k plus, as there are a lot of fees associated with an IVA.

    How much do you owe in total ?

    Are you a homeowner ?
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Concerned75
    Concerned75 Posts: 296 Forumite
    Photogenic First Anniversary First Post
    If you're only left with £20, not including food and personal expenses, you're either paying the wrong amount and it wasn't set up correctly, or you've already deducted those expenses.
    Would need to add further information on your situation.
  • Jason5354
    Jason5354 Posts: 5 Forumite
    edited 22 September 2016 at 1:35PM
    I have a partner that pays for food while I pay the bills.
    The £20 a week is after paying the bills.
    Usually tho go in to unplanned over draft
  • Jason5354
    Jason5354 Posts: 5 Forumite
    I owe 13k.
    The company I've inquired about the IVA said I'm eligible for one and instead of paying out 1/2 my wage I will only pay £100 a month if all goes through
  • Angry_Bear
    Angry_Bear Posts: 2,021 Forumite
    First Post First Anniversary Combo Breaker PPI Party Pooper
    Jason5354 wrote: »
    And paying out £400 a month in credit cards and catalogue.
    ....
    it would take me 11+ yrs to pay off all debts that's not including interest.
    ...
    Jason5354 wrote: »
    I owe 13k.
    Something doesn't add up.
    It would be worth filling in a statement of affairs (http://www.stoozing.com/calculator/soa.php), then running your debts through the snowball calculator (http://www.whatsthecost.co.uk/snowball.aspx).

    Then I'd recommend calling StepChange or national debt line for advice. As they're charities, you'll get unbiased advice rather than a sales pitch for an IVA.
    Do you not know that a man is not dead while his name is still spoken?
    ― Sir Terry Pratchett, 1948-2015
  • Muttipops
    Muttipops Posts: 269 Forumite
    DO NOT GO WITH A COMPANY YOU HAVE TO PAY TO ADMINSTER AN IVA FOR YOU!!!


    Did I shout that loud enough?!!!!!!


    Angry bears' advice above is spot on!
  • sourcrates
    sourcrates Posts: 28,834 Ambassador
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    edited 22 September 2016 at 2:11PM
    Muttipops wrote: »
    DO NOT GO WITH A COMPANY YOU HAVE TO PAY TO ADMINSTER AN IVA FOR YOU!!!


    Did I shout that loud enough?!!!!!!


    Angry bears' advice above is spot on!

    All IVA's have fees associated with them unfortunately.

    The question is weather an IVA is suitable or not, if the OP is not a homeowner they should be looking at a debt relief order first of all.

    All it may require is a more accurate budget.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Muttipops
    Muttipops Posts: 269 Forumite
    sourcrates wrote: »
    All IVA's have fees associated with them unfortunately.

    The question is weather an IVA is suitable or not, if the OP is not a homeowner they should be looking at a debt relief order first of all.

    All it may require is a more accurate budget.




    Oops and apologies for my ignorance in this matter, i will store that info away in my brain for future use, sourcrates.
    I paid into a DMP abroad and they fleeced me and were incompetant, so I have an aversion to paying for debt help and didn't know the realities of IVA's in the UK; I must do my homework!!;)
  • sourcrates
    sourcrates Posts: 28,834 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    edited 22 September 2016 at 3:29PM
    Muttipops wrote: »
    Oops and apologies for my ignorance in this matter, i will store that info away in my brain for future use, sourcrates.
    I paid into a DMP abroad and they fleeced me and were incompetant, so I have an aversion to paying for debt help and didn't know the realities of IVA's in the UK; I must do my homework!!;)

    Yea DMP's arnt regulated so a private company can change whatever they like.
    Every other debt solution is regulated, and has an associated fee set by parliament.

    The problem with an IVA is the fees an IP will charge for administering your arrangement, they can amount to a quiet a few thousand pounds, so unless you owe say 30k plus, there will be very little return for the creditors, and they won't approve it.

    The OP owes 13k, at a guess I would say around 8k of that would go in fees, leaving very little for the creditors, so it's unlikely to be approved, so would not be suitable for them really.

    Some companies try to flog IVA's when they are not the right solution because of the money they can make
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Muttipops
    Muttipops Posts: 269 Forumite
    edited 22 September 2016 at 3:57PM
    "Some companies try to flog IVA's when they are not the right solution because of the money they can make " Last edited by sourcrates; Today at 2:29 PM.


    Even fleas must have fleas, I suppose.
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