IVA / Debt Consolidation Help

buffness

Hey Guys,

Am fairly new to this... so any help would be appreciated

I am currently in the following debt:

EGG Credit Card: 1600
Virgin Credit Card: 1600
MBNA Credit Card: 1600
Overdraft (Natwest): 1900

So... in total £6700... I know that most people on here are in LOADS more debt than this but this is MASSIVE and very worrying to me !!!

I cant get a loan because of my bad credit rating... so decided to search for one of these Debt Consolidation / IVA Loans... went onto one website, registered my details and within 10 seconds, a company called Churchwood Finace gave me a call...

To cut a long story short, they said they can clear this debt... first payment £150.00 and then the remaining monthly payments of £120.... this is over 6 years! A long time, but I am so desperate to pay this off as the interest on these credit cards are building up!!

Ive heard mixed reactions from people about these companies...... so have decided to come onto this forum here and ask if other people have one of these Debt Consolidation loans, and if people have dealt with these companies, and who, if any, are the best company to go with......

Thanks!!!

:money:

tictax

An IVA is not the same as debt consolidation. An IVA is only recommended when you have high levels of debt and £6700 isn't really that much.

With an IVA they arrange to get your interest frozen by your creditors but in view of the small amount of total debt I wouldn't think that your creditors would agree to this.

A consolidation loan is not always the best solution as many people consolidate their loans and then go on to take out more debt and end up in a worse situation.

I wouldn't recommend people ever using the IVA companies are they are looking to make money out of you. Try the debt free board where people experiencing similar situations to you can be found.

tictax

Have just looked up your previous posts and have noticed that you are have already been declined further credit.

You need to give us more details so that people can help.

buffness

OK - Will do...

What other details would you like?

And yeah, my fault. Got them mixed up
Basically, the point of this post was the Debt Consolidation Loan, not the IVA....

Apologies

buffness

My credit rating is THAT bad I cant even get a credit card from Vanquis!!

The reason I can think of, is that the address on my credit file is my OLD address when I used to live at my moms, not the address that I live at now, and this new address is the one that I put into ALL credit agreement forms for loans / credit cards etc...

Could this be a reason why I am declined??

~Beanie~

If you are applying for credit using an address where you aren't registered on the electoral roll then yes, it could have something to do with it.

Also making a few applications in a short space of time can affect your score, as can any late payments. In fact, it could be any number of things.

What is the interest rate on the loan they are offering you? With a bit of careful budgeting you could probably pay your debts off in less than 6 years anyway, without a loan.

Have you posted an SOA on here yet?

~Beanie~

I've just read your previous posts which state that you have a Blackhorse Finance agreement in your name on which no payments have been made recently.

I think that is where the problem lies in getting more credit...

buffness

Whats an SOA - sorry

And yes, with regards with the Blackhorse Finance Agreement, the car got repossessed and they said they would "be in touch"... so am just waiting for them to get back to me.

But for some off reason, its been removed from my credit file on Equifax :-S

~Beanie~

There are 3 credit reference agencies, just because something doesn't appear on one doesn't mean it won't appear on the other 2. You need to check all three really.

An SOA is a statement of affairs, basically a list of your income and all outgoings. Hop over to the Debt Free Wanabee board and post one over there, some very experience people use that board and they may be able to help you find ways to repay your debts without getting a loan.

tictax

Blackhorse are big users of Experian so it will probably still be on there.

As other posters have mentioned you will struggle to get any further credit due to the short time at the addresses and the Blackhorse agreement being in arrears.

You will not get any more credit therefore the only way that you can get out of this debt is by earning more and/or spending less.

A SOA is a statement of affairs which will include all income, regular expenses eg rent, council tax, electric, tv licence, food etc and your loan repayments.

If you put a post on the debt free wanabe board they will be able to help you loads.