Advice please-

rayday2

Hi I just found this from another member I hope they don't mind me posting it of their personal experience of an IVA

http://forums.moneysavingexpert.com/showpost.html?p=12707439&postcount=4

david_hellier

Hi,

According to my calcs you are overspending by £21.71 per week. Therefore you cannot afford to eat or spend on anything else. An IVA is probably the best route unless you can raise your weekly income by about £100. Take the advice of others on going to a debt charity.

Good luck, the figures:

incomeweeklymonthlyself 1800.00other total0.001800.00divide by 4.33 £ 415.70 £ 415.70 total weekly incomespendweeklymonthlyrent/mortgage 900.00council tax 91.00elec 15.00gas 5.00water 15.00secured loans 167.00TV licence 12.00fines 0.00mob 35.00tv/int 35.00petrol 80.00car tax/ins 50.00personal ins 75.00ground rent 15.00halifax 229.00cc 120.00o/d payoff 50.00 total0.001894.00divide by 4.33 £ 437.41 £ 437.41 total weekly spendStart= income - spend =-£ 21.71 per week



I would get rid of the tv/internet if poss and the car.

CCCS_Alan

Hi SM1974

If you are looking at an IVA you would normally be asked to look at equity release in year 4 to give your creditors a better return on the IVA. And acceptance of an IVA is not guaranteed.
They are complicated, and failure of an IVA can unfortunately lead to bankruptcy of the individual or couple.

If you would like some independent advice on your situation you can try our online advice facility called Debt Remedy. Debt Remedy would assist you in completing a financial statement and you would be provided with tailored advice on the best way to deal with your situation. Click here to go directly to Debt Remedy.

If you would prefer to talk to a debt counsellor about your situation you can book a telephone based appointment by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00.

Regards

CCCS_Alan

SM1974

david_hellier wrote: »

Hi,

According to my calcs you are overspending by £21.71 per week. Therefore you cannot afford to eat or spend on anything else. An IVA is probably the best route unless you can raise your weekly income by about £100. Take the advice of others on going to a debt charity.

Good luck, the figures:

incomeweeklymonthlyself1800.00othertotal0.001800.00divide by 4.33 £ 415.70 £ 415.70 total weekly incomespendweeklymonthlyrent/mortgage900.00council tax91.00elec15.00gas5.00water15.00secured loans167.00TV licence12.00fines0.00mob35.00tv/int35.00petrol80.00car tax/ins50.00personal ins75.00ground rent15.00halifax229.00cc120.00o/d payoff50.00total0.001894.00divide by 4.33 £ 437.41 £ 437.41 total weekly spendStart= income - spend =-£ 21.71 per week



I would get rid of the tv/internet if poss and the car.

Thanks again for the posts-

I think an IVA will be the best bet although It will have to be through cccj or through advice on here in terms of who to set up with-

I think reading between the lines irrespective of debt, as long as you maintain payments, your income doesnt inrease drastically & your net equity in your property isnt large + then an iva is a good route to take-

S

SM1974

CCCS_Alan wrote: »

Hi SM1974

If you are looking at an IVA you would normally be asked to look at equity release in year 4 to give your creditors a better return on the IVA. And acceptance of an IVA is not guaranteed.
They are complicated, and failure of an IVA can unfortunately lead to bankruptcy of the individual or couple.

If you would like some independent advice on your situation you can try our online advice facility called Debt Remedy. Debt Remedy would assist you in completing a financial statement and you would be provided with tailored advice on the best way to deal with your situation. Click here to go directly to Debt Remedy.

If you would prefer to talk to a debt counsellor about your situation you can book a telephone based appointment by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00.

Regards

CCCS_Alan

thanks allen-
I completed the debt remedy & it recommended bankrupcy as the solution, although there was no mention of an IVA-

Your Financial Summary

n Monthly income = £1800

n Total outgoings = £1794

n Monthly contractual payments = £549

n You have 3 creditors

n Your total credit debt = £18000

n You have £6 left over each month once you have covered

all of your priority expenditure.

Why do you think that is-

S

CCCS_Alan

Hi SM1974

If you only have a surplus of £6 per month it is reasonable to say that it would take a unrealistic length of time to pay back your debts, hence the Bankruptcy advice. It may be more practical to book an appointment so an advisor can go through a full appointment with you and look at your budget to see if more than the £6 can be offered to your creditors, and what other possible options may be available to you. Costs in a budget have to be realistic so unfortunately changes in lifestyle may be required as well to try and allow you to repay your debts in a reasonable amount of time.

Regards

CCCS_Alan

SM1974

CCCS_Alan wrote: »

Hi SM1974

If you only have a surplus of £6 per month it is reasonable to say that it would take a unrealistic length of time to pay back your debts, hence the Bankruptcy advice. It may be more practical to book an appointment so an advisor can go through a full appointment with you and look at your budget to see if more than the £6 can be offered to your creditors, and what other possible options may be available to you. Costs in a budget have to be realistic so unfortunately changes in lifestyle may be required as well to try and allow you to repay your debts in a reasonable amount of time.

Regards

CCCS_Alan

I think I will need to get some money paid off on my Secured loan to Generate a lower monthly repayment & also review my monthly spend-
I really dont want to declare bankrupct when if I could squeeze my SOA up enough to afford an IVA-

Steve

GeorgeUK

Steve - i strongly recommend seeing an advisor at one of the free debt charities. I am always a bit concerned when someone mentions that a company has advised them an IVA is the way to go without seeking advice. Alot of these companies make £5k for every IVA they set up. I bet they forgot to mention that.

The CCCS is a well known and respected debt charity. There are a few advisors like Alan who have been given permission to have the details of CCCS in their signature and to advise on the board. Please bear in mind though that an IVA is one step away from bankruptcy. If the IVA fails then this may be the next step.

Edit: Have you claimed everything you should be getting? http://www.entitledto.co.uk/
Have you reclaimed bank charges or credit card charges?
Were you missold an endowment or PPI?
Have you checked your council tax banding is correct?
http://www.moneysavingexpert.com/reclaim/

SM1974

GeorgeUK wrote: »

Steve - i strongly recommend seeing an advisor at one of the free debt charities. I am always a bit concerned when someone mentions that a company has advised them an IVA is the way to go without seeking advice. Alot of these companies make £5k for every IVA they set up. I bet they forgot to mention that.

The CCCS is a well known and respected debt charity. There are a few advisors like Alan who have been given permission to have the details of CCCS in their signature and to advise on the board. Please bear in mind though that an IVA is one step away from bankruptcy. If the IVA fails then this may be the next step.

Edit: Have you claimed everything you should be getting? http://www.entitledto.co.uk/
Have you reclaimed bank charges or credit card charges?
Were you missold an endowment or PPI?
Have you checked your council tax banding is correct?
http://www.moneysavingexpert.com/reclaim/

Hi George-

Ive pasted in my SOA summary from cccs

Your Budget
The figures in this budget are based on those supplied by you during the preparation of your Debt Remedy.
Your Income Amount
Your take home pay £1,950
Your partner's take home pay
Rent/board received
Pension received
Any other income received
Income Support
Jobseekers Allowance
Your Income Amount
Incapacity Benefit
Disability Living Allowance
Working Tax Credit
Child Benefit
Child Tax Credit
Child Support
Total income £1,950
Housing Amount Comment
Rent
Mortgage £900
Secured loans/2nd mortgage £167
Mortgage endowment premium
Service charge/ground rent £25
Water £15
Council tax £76
Gas £7
Electricity £28
Other household fuel
Household services
Building and contents insurance £23
Telephone, mobile & internet £45
TV licence £10
Satellite
Repairs and maintenance
Household appliance rental £35
Child maintenance
Childcare
Fines, CCJs, Decrees
Life insurance/pensions £75
Medical/accident insurance
Hire purchase
Transport
Vehicle spares and servicing £10
Road tax £21
Motor insurance £30
Vehicle breakdown cover
Fuel & parking £110
Public Transport
Food & housekeeping
Food, toiletries, cleaning £100
School meals/meals at work
Pets, pet food/insurance
Tobacco
Misc. goods & services
School trips/activities
Medicines/prescriptions
Dentist/opticians
Hairdressing £10
Union/professional fees
Laundry/dry cleaning
Education fees
Personal & leisure
Clothing & footwear £20
Newspapers/magazines
Sports, hobbies, entertainment £35 Gym membership
Children's pocket money
Church/charity donations
Sundries/emergencies/other costs
Sundries/emergencies £5
Loan from family/friend
Other
Total expenses £1,747
Additional information Comment
No of adults 1
Dependants 0
Totals Amount
Total income £1,950
Total expenses £1,747
Surplus (Deficit) £203
Your Creditor List
The figures in this creditor list are based on those supplied by you during the preparation of your Debt Remedy.
Creditor name Debt type
Outstanding
balance
Contractual
payment

Ownership

Creditor name Debt type
Outstanding
balance
Contractual
payment
Ownership
of debt
1 AA Credit Card £800 £40 Me
2 Abbey Overdraft £4,000 £200 Me
3 Barclaycard Credit Card £5,500 £150 Me
4 Capital One Credit Card £11,000 £330 Me

TOTAL £21,300 TOTAL £720



I am seeing a FA over the next week & will reconsult the CCCS regarding the suggested DMP Or a potential IVA-
( Obviuosly my DMP IS £203 PCM)

Maybe you or CCCS allen have a comment?
S

GeorgeUK

Doesn't look like there is anything else you can cut back on other than perhaps the gym membership. I think a DMP will be advisable in the first instance - you may need to pay back more in the long run than perhaps you would with an IVA but at least your home is not at risk if you have problems meeting the payments.

I had thought about a mortgage holiday or changing the mortgage to interest only until you can get rid of some of the debts but i can't see it would make enough of a dent in the monthly payments to be of use - even if you could get a 0% creditcard with reduced monthly payments.

I suggest you start keeping a spending diary so you can see exactly what you are spending your money on and seeing if it is tying up with your budget figures. Hopefully if you do go on the DMP it will not take long to get the interest frozen which should help and the board is always useful if you need any support or advice.