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  • FIRST POST
    • Missrcj
    • By Missrcj 11th Jan 18, 9:59 AM
    • 6Posts
    • 1Thanks
    Missrcj
    IVA or DMP
    • #1
    • 11th Jan 18, 9:59 AM
    IVA or DMP 11th Jan 18 at 9:59 AM
    Hello

    I am new to this but have been reading some threads and can see useful replies.

    I am 38, single, live in rented accomadation and have no children.
    I went back to university to retrain and am now a qualified Speech and Language Therapist. When I was younger I went to university in 1997 but didnít take it seriously and just racked up student debt (loans amounting to around 12k). This has gone to Erudio.
    When I went back to retrain I tried to apply for a second student loan and they said I couldnít as I had this previous debt and that instead i had to pay that back. So I have been paying it back for 4 years, so far at the minimum amount each month. I got an NHS bursary which just covered my rent and the NHS paid my fees so in that sense I was lucky. I worked all through uni as I didnít get a loan so literally anything aside from rent and fees I needed to cover with my wages. Even though my contact hours were 35 hours a week in uni and obviously I had assignments etc on top of that I worked as well. It was exhausting but I did it.
    I have never not worked and in my final year I was working as a teaching assistant on my days off from uni and continued doing this until lectures finished when I went full time. I gained a job as a Speech Therapist less than a month after finishing uni and went straight from working as a teaching assistant to working as a Speech Thrrqoist - finally earning a semi decent wage.
    I suppose what Iím trying to say is that I have always worked. Sometimes holding down three jobs at a time.
    However, life on the minimum wage is hard and I occasionally took out a small pay day loan. Only for short amounts of time and I always paid them back.
    It was really once I started working that all my debt troubles really began. I live in Manchester but got a job in Chester so I needed a car. I took out a loan from the AA AA -2500- and bought a car for 1500, the rest I used to put the deposit down on the insurance, get to work in the interim and just general life stuff.
    I took 3 weeks unpaid holiday as Iíd previously saved for a booked a holiday (my first in 4 years) to celebrate finishing university. I know now this was a mistake as I struggled for a few months to get back on top of my wages. On top of that my car kept breaking down. I took a credit card to pay 300 for repairs. The man I bought it from took no responsibility and had only given me a month warranty.
    After several trips to the garage and more money spent on it the main advice was to get rid as the work needing doing would cost over 1000. I part exchanged it with VW got a newer car on PCP but lost 900 of the value of my old car plus I was still paying off the loan. I should have got a car on PCP in the first place because I drive around 90 miles a day.
    Anyway, now I had two car payments and a credit card to pay for. I ended up getting more expensive pay day loans as I wasnít still able to pay them back each month but I was literally borrowing, paying them back at the end of the month and then because of petrol etc needing to borrow more.
    My employer then told me my contract would be ending that July instead of January- as theyíd told me in my interview. Again I had interviews and got a new job with the NHS before my role had ended. However, I finished my job in July but because HR process take so long in the NHS I ended up waiting for nearly 3 months before my new position started. In that time I had to pay rent, two car payments, credit cards and payday loans so as you can imagine I ended up borrowing more. I did agency work but only got work here and there and again mainly min wage stuff.
    Now I am employed by the NHS but couldnít afford the juggling of all my debts. I contacted Stepchange who have helped me out with a budget. However they have made me include my loans to Erudio (student loans) and since they have added that my option are an IVA or a DMP which will take over 15 years to pay off.
    Iím 38 and want to think about a home, family etc but I feel I canít as ill be forever paying off my debts. Their recommended option for me is the IVA which is appealing as itís shorter but I am worried theyíll take my car on PCP off me. I drive 70 miles a day now to Liverpool and back but also drive around during work as I am community based and visit different schools etc. I get stuck in heavy traffic and drive a lot so I need my reliable car.
    The DMP seems appealing too but itís just so long and after Iíve been struggling throughout uni for 4 years I canít bear the thought of everything I owe going to debt plans for 15 years and not having any holidays etc.
    Sorry for the incredibly long winded message but this is my situation and I wanted to explain it all.
    Any thoughts on which would be best for me?
Page 1
    • Pixie5740
    • By Pixie5740 11th Jan 18, 10:03 AM
    • 11,376 Posts
    • 16,002 Thanks
    Pixie5740
    • #2
    • 11th Jan 18, 10:03 AM
    • #2
    • 11th Jan 18, 10:03 AM
    Duplicate thread: http://forums.moneysavingexpert.com/showthread.php?t=5773414
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
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