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Main site > Forums > Essential Money > Bankruptcy & Living With It > IVA & DRO > MOT repair costs ideas
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      silvdo
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    • silvdo
    • By silvdo 18th Oct 16, 4:28 PM
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      What's this?

    silvdo
    MOT repair costs ideas
    • #1
    • 18th Oct 16, 4:28 PM
    MOT repair costs ideas 18th Oct 16 at 4:28 PM
    I am 4 an 1/4 years into what was originally a 5 year IVA with Payplan but got extended by a year in 2014 due to a variation agreement. so I'm now due to conclude in august 2017 its all gone well but now its nearing its end I'm considering my options as I have an equity release clause and really I just want the IVA concluded as smoothly and quickly as possible, and i've been wondering about the feasibility in taking some sort of loan to offer as a final settlement. But I've been putting this off as I don't know where to start.


    But then my car that I need for work has failed its MOT with an estimated repair cost of £750. Which I don't have so I have to work out how to pay the repair bill. So looking for any ideas? so far I have 3 options.


    1) Take a loan for 750 over 9 months, this would be affordable partly due to some contingency in my budget but mainly due to me stopping £100 of childcare vouchers that I no longer need and hopefully some flexibility Payplan has in my contributions.


    2) Could I take a larger loan say £4,000 over 2 years. I could then offer £3000 to end my IVA and the rest for my car. this would complete my IVA repayments 9 months early but I'm also likely to have a further 12 payments because of Equity release. I currently pay £169 but a loan would likely be in the region of £188.


    3) Payplan have suggested a payment break. but I don't see how that would help as I'd still need to take a loan now, which wouldn't be any better than the first option.


    Does anyone have any other ideas?


    few other details. I'm a member of 2 credit unions and contribute regularly for Christmas savings and household repairs, but the household repairs was used last month because of a leak. Having spoken to them 1 seemed to suggest that it was feasible to take a loan to conclude my IVA if it was proven to be affordable, the other one was less keen on option 2 but may be able to provide a loan for the repairs in the short term.


    One of my biggest issues is time, due to the process, as first I have to ask Payplan if I can apply for a loan, possibly wait for a variation agreement and then I have to apply for a loan which may or may not be approved, and all the time I don't have a car which will make my job increasingly difficult as the days go by.


    Any ideas?
    Appologies for any bad spelling in my posts i do my best but they are unavoidable.

    Sorry!

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      memberme
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    • By memberme 19th Oct 16, 11:59 AM
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      What's this?

    memberme
    • #2
    • 19th Oct 16, 11:59 AM
    • #2
    • 19th Oct 16, 11:59 AM
    Hi,
    can be a real pain. I remember having a near heart-attack every year whilst my old banger was being tested.

    1). you are allowed up to 3 months break for the duration of most IVA's, so if you have not utilised this previously, you could ask for a longer break (I did this in my iva a few years back).

    2). Buy a 2nd hand cheap car for 2-300 quid with a year’s MOT. Plenty on eBay. You could either sell you current car, as is, or keep it until the IVA's over and then repair. You'd register it as off road to stop the road tax.
    3). Borrow from a relative
    4). see if any nearby repairer will let you pay monthly for a while (not unknown)

    IP's are not that keen on additional loans etc during IVA but i know it can be done. i guess if you could tie it up with a F&F it may be possible depending what you still owe, your property equity etc etc and finding a lender and having it authorised
    Last edited by memberme; 19-10-2016 at 12:02 PM.

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      jeepjunkie
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    • By jeepjunkie 19th Oct 16, 12:19 PM
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      What's this?

    jeepjunkie
    • #3
    • 19th Oct 16, 12:19 PM
    • #3
    • 19th Oct 16, 12:19 PM
    Bus, train, cycle, walk or save. Another loan is lunacy.

    Sorry!

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    • User avatar
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      silvdo
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    • By silvdo 20th Oct 16, 3:25 PM
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      What's this?

    silvdo
    • #4
    • 20th Oct 16, 3:25 PM
    • #4
    • 20th Oct 16, 3:25 PM
    “
    Bus, train, cycle, walk or save. Another loan is lunacy.
    Originally posted by jeepjunkie ”


    The thing is


    Petrol cost £7.50 per day
    Train costs £15 per day


    Driving takes me 1 hr 15 mins each way
    Train takes 2hrs and 30 mins each way.


    There is no bus walking or cycling would take me most of the day. Saving is all well and good but not going to get me to work tomorrow.


    So going by train will increase my monthly outgoings by £150 working 13+hr days for the privilege.


    As for a loan being lunacy. Borrowing £700 from my credit union and repaying it over 6 months will cost me £123 per month and a total £40 in interest. It is affordable as I am stopping the purchase of Childcare vouchers as I no longer need them this will give me an extra £90ish pounds per month and then if I can get some lee way from Payplan I can reduce my payments into my IVA by £30 (within the 15% authorization they have), plus by buying a smaller car the car tax will go down a little too, and maybe petrol consumption will be less too. I would want it short term so that it is complete before any repairs come up from the new\old car.
    Appologies for any bad spelling in my posts i do my best but they are unavoidable.

    Sorry!

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      jeepjunkie
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    • By jeepjunkie 30th Oct 16, 4:32 PM
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      What's this?

    jeepjunkie
    • #5
    • 30th Oct 16, 4:32 PM
    • #5
    • 30th Oct 16, 4:32 PM
    “
    The thing is


    Petrol cost £7.50 per day
    Train costs £15 per day


    Driving takes me 1 hr 15 mins each way
    Train takes 2hrs and 30 mins each way.


    There is no bus walking or cycling would take me most of the day. Saving is all well and good but not going to get me to work tomorrow.


    So going by train will increase my monthly outgoings by £150 working 13+hr days for the privilege.


    As for a loan being lunacy. Borrowing £700 from my credit union and repaying it over 6 months will cost me £123 per month and a total £40 in interest. It is affordable as I am stopping the purchase of Childcare vouchers as I no longer need them this will give me an extra £90ish pounds per month and then if I can get some lee way from Payplan I can reduce my payments into my IVA by £30 (within the 15% authorization they have), plus by buying a smaller car the car tax will go down a little too, and maybe petrol consumption will be less too. I would want it short term so that it is complete before any repairs come up from the new\old car.
    Originally posted by silvdo ”

    I just knew you were going to say that...

    Sorry!

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