To IVA or not to IVA, that is the question...

jakesballs

Hi Everyone,
Hope you can help, me and OH have finally realised that we can't keep paying the mortgage and running up more and more debt.
I'm sure you guys can come up with some good advice. Someone suggested the IVA route but I don't fancy the long term implications.
Some of the info I've given is estimated, I'll get the full details and update it asap but this is pretty representative.
I don't have any amounts for gifts, holidays, haircuts, entertainment or emergencies, obviously that puts us even further over the edge
Looking forward to your responses
Cheers, JB



Monthly income after tax................ 1366
Partners monthly income after tax....... 800
Benefits................................ 80
Other income............................ 100 (sister paying credit card she ran up debt on)
Total monthly income.................... 2346

Mortgage................................ 927
Council tax............................. 95
Electricity............................. 100
Water rates............................. 15
Telephone (land line)................... 23 (Virgin home phone/broadband/cable TV)
Mobile phone............................ 40 (two contract phones)
TV Licence.............................. 10
Groceries etc. ......................... 300
Clothing................................ 36
Petrol/diesel........................... 240 Two cars, we both travel to work in opposite directions!
Road tax................................ 400
Car Insurance........................... 60
Car maintenance (including MOT)......... 28
Contents insurance...................... 50
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 (couldn't say tbh)
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2344

Assets
Cash.................................... 0
House value (Gross)..................... 125000 (quote from estate agent, paid 140k just over a year ago)
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 126500

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 158000...(927)......8 (I'll need to check the rates, this is 133000 mortgage plus 25k secured loan!)
Total secured debts........... 158000...

Unsecured Debts
Description....................Debt......Monthly...APR
BCARD CC.......................1800......40........15
EGG CC.........................1250......25........13
MBNA CC........................5500......100.......15
MARBLES CC....................4500......95........15
CAPITAL ONE CC.................2200......50........25
Total unsecured debts..........15250.....310.......

Monthly Budget Summary
Total monthly income.................... 2,346
Expenses (including secured debts)....... 2,344
Available for debt repayments........... 2
Monthly UNsecured debt repayments....... 310
Surplus(deficit if negative)............ -308

Personal Balance Sheet Summary
Total assets (things you own)........... 126,500
Total Secured debt...................... -158,000
Total Unsecured debt.................... -15,250
Net Assets.............................. -46,750

Nick38

Hi

I hope someone could answer your question as my wife is in the same boat. She doesn't know if the I.V.A is a good idea or to stick with the DMP can anyone help us with this & the Op..

RAS

Hi both

First please read martin's IVA Guide here http://www.moneysavingexpert.com/loans/pdf-iva-guide.pdf

And second, please please only conside ran IVA if CCCS advise you to take one. They are a debt charity and offer IVAs only becuase they would rather see them well run than see people fleeced. They estimate they are only appropriate for 3% of their clients.

There contact details are here http://www.moneysavingexpert.com/loans/debt-help-plan#help

Jakesball - since you have no equity to protect, it does not appear that an IVA would be appropriate but you need to talk to CCCS or NDL for advice. Will also post some comnets on your SOA in a mo.

skintandscared_2

Is £400 a month for car tax right??!

The other thing that stands out is £300 for groceries, etc. I can budget all groceries, cleaning stuff and toiletries to a max of £50 a week. Try menu planning and only buying what you actually need to make those meals.

~Beanie~

jakesballs wrote: »

I don't have any amounts for gifts, holidays, haircuts, entertainment or emergencies, obviously that puts us even further over the edge

You can't afford holidays or an emergency fund at the moment...

Monthly income after tax................ 1366
Partners monthly income after tax....... 800
Benefits................................ 80
Other income............................ 100 (sister paying credit card she ran up debt on)
Total monthly income.................... 2346

Mortgage................................ 927
Council tax............................. 95
Electricity............................. 100 - This seems very high!
Water rates............................. 15
Telephone (land line)................... 23 (Virgin home phone/broadband/cable TV)
Mobile phone............................ 40 (two contract phones)
TV Licence.............................. 10
Groceries etc. ......................... 300 - If it's just 2 of you, you can halve this
Clothing................................ 36
Petrol/diesel........................... 240 Two cars, we both travel to work in opposite directions!
Road tax................................ 400 - This cannot be right!
Car Insurance........................... 60
Car maintenance (including MOT)......... 28
Contents insurance...................... 50 This is high, can you switch Company?
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 (couldn't say tbh)
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2344

RAS

jakesballs wrote: »

Monthly income after tax................ 1366
Partners monthly income after tax....... 800
Benefits................................ 80
Other income............................ 100 (sister paying credit card she ran up debt on)
Total monthly income.................... 2346

Mortgage................................ 927
Council tax............................. 95
Electricity............................. 100 - this is massive even if you have no gas. How big is the house, can you check exactly what is on and turn it off. NOW
Water rates............................. 15
Telephone (land line)................... 23 (Virgin home phone/broadband/cable TV)
Mobile phone............................ 40 (two contract phones) - when do the contract run out?
TV Licence.............................. 10
Groceries etc. ......................... 300 - for how many?
Clothing................................ 36 - stop buying them for the next few months.
Petrol/diesel........................... 240 Two cars, we both travel to work in opposite directions! Do you both absolutely have to have cars? Could you travel by public transport sometimes
Road tax................................ 400 - this must be a typo which is wrecking your solvency
Car Insurance........................... 60 - check with the comparision sites and swap via www.quidco.com or another cashback site
Car maintenance (including MOT)......... 28
Contents insurance...................... 50 -How many artworks? check with the comparision sites and swap via www.quidco.com or another cashback site
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 (couldn't say tbh)
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2344

Assets
Cash.................................... 0
House value (Gross)..................... 125000 (quote from estate agent, paid 140k just over a year ago)
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 126500

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 158000...(927)......8 (I'll need to check the rates, this is 133000 mortgage plus 25k secured loan!)
Total secured debts........... 158000...

Unsecured Debts
Description....................Debt......Monthly...APR
BCARD CC.......................1800......40........15
EGG CC.........................1250......25........13
MBNA CC........................5500......100.......15
MARBLES CC....................4500......95........15
CAPITAL ONE CC.................2200......50........25
Total unsecured debts..........15250.....310.......

Monthly Budget Summary
Total monthly income.................... 2,346
Expenses (including secured debts)....... 2,344
Available for debt repayments........... 2
Monthly UNsecured debt repayments....... 310
Surplus(deficit if negative)............ -308

Personal Balance Sheet Summary
Total assets (things you own)........... 126,500
Total Secured debt...................... -158,000
Total Unsecured debt.................... -15,250
Net Assets.............................. -46,750

We need to know the limits on those cards, but even so, the one to hit is the CAp1 card.

milliemonster

Some great ideas posted above but I think you need to think very carefully about your mortgage, which is currently almost half your total net income so I personally think the fact that you are also in negative equity, an IVA isn't the way to go, if you are thinking along those lines to try and avoid bankruptcy (as being in negative equity you wouldn't lose your house anyway if you went BR) I think that you would struggle to find the funds to pay into an IVA over the 3 years (or is it 5? I can't remember)

Is there anyway you can increase your income at all?

jakesballs

Thanks for the responses, especially for pointing out my errors! The car tax is wrong, i input an approx yearly figure not a monthly one, so I have already gained £360 a month! That will teach me for posting at 11pm.:o
More importantly the electric is very high. This is a one bed flat with storage heaters on economy 7. Apparently the account was in arrears hence the high payment. We don't have gas so I guess that bumps the figure up. Even so it still seems very high, so I'll look a bit deeper into this. Contents cover is another I'll have to have a rethink on.
By the way, this is all for two adults and an 16 month old boy, I think most of our impulse buying is probably new toys... he gives you the look, what can I say?

Mortgage................................ 927
Council tax............................. 95
Electricity............................. 100
Water rates............................. 15
Telephone (land line)................... 23 (Virgin home phone/broadband/cable TV)
Mobile phone............................ 40 (two contract phones) I'd sooner have a contract phone as I was always running out of credit on PAYG. I don't need massive mins or texts, so I'm sure I can get a cheaper tariff.
TV Licence.............................. 10
Groceries etc. ......................... 300 (agreed that this can be cut, maybe a shopping diary would show us where we're going wrong)
Clothing................................ 36
Petrol/diesel........................... 240 Two cars, we both travel to work in opposite directions!
Road tax................................ 34 (two cars)
Car Insurance........................... 60 two cars, have shopped around for these so no savings here
Car maintenance (including MOT)......... 28
Contents insurance...................... 50 (checking it out later tonight!!)
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 (couldn't say tbh)
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1978


Thanks again for all the replies, I'll speak to CCCS in the next few days but I'm pretty sure from reading up and hearing Martin on Radio 1 earlier that this isn't the way to go.

jakesballs

Thanks for the responses, especially for pointing out my errors! The car tax is wrong, i input an approx yearly figure not a monthly one, so I have already gained £360 a month! That will teach me for posting at 11pm.:o
More importantly the electric is very high. This is a one bed flat with storage heaters on economy 7. Apparently the account was in arrears hence the high payment. We don't have gas so I guess that bumps the figure up. Even so it still seems very high, so I'll look a bit deeper into this. Contents cover is another I'll have to have a rethink on.
By the way, this is all for two adults and an 16 month old boy, I think most of our impulse buying is probably new toys... he gives you the look, what can I say?

Mortgage................................ 927
Council tax............................. 95
Electricity............................. 100
Water rates............................. 15
Telephone (land line)................... 23 (Virgin home phone/broadband/cable TV)
Mobile phone............................ 40 (two contract phones) I'd sooner have a contract phone as I was always running out of credit on PAYG. I don't need massive mins or texts, so I'm sure I can get a cheaper tariff.
TV Licence.............................. 10
Groceries etc. ......................... 300 (agreed that this can be cut, maybe a shopping diary would show us where we're going wrong)
Clothing................................ 36
Petrol/diesel........................... 240 Two cars, we both travel to work in opposite directions!
Road tax................................ 34 (two cars)
Car Insurance........................... 60 two cars, have shopped around for these so no savings here
Car maintenance (including MOT)......... 28
Contents insurance...................... 50 (checking it out later tonight!!)
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 (couldn't say tbh)
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1978


Thanks again for all the replies, I'll speak to CCCS in the next few days but I'm pretty sure from reading up and hearing Martin on Radio 1 earlier that this isn't the way to go.

jakesballs

sorry for the repost, my pc and this forum don't seem to agree!

Deep_In_Debt

Hi just read your post.

I live in a 2 bed house and have Economy 7 storage heaters and my electricty is no where near yours! Mine's about £30 pm. Have you checked the arrears situation?