Wondering if we should get an IVA

warren100uk_2

Hi all,

Myself and my girlfriend are really getting stressed with our fiances.

We have been keeping our heads above water for a while now and have gone behind on some credit card payments but have got them back upto date. But its getting to the point that we cant afford to buy any food now, and its getting us down. There are many reason for the things being like this, spending too much, my girlfriend was out of work for a while, ive been ill for the last few years and when iam ill ive been having 3 to 6 months off a time and getting basic sick pay.

Anyway am thinking that we should take an IVA, because of getting behind on some payments our credit rating is now shot anyway, so not really bothered about that, but have read so many posts about them and really dont know if its the right thing todo.

We both work long hours, as we all do, so getting second jobs is hard, as we have tried, but we work weekends and days of are never the same.

Have done a SOA, some of the things like mobiles and tv we are locked into, but would welcome any advice.£2503 is what is coming out off the bills account, before we have paid for food and we take home £2500.

At the start of the year i got so down, with being off work all the time and worrying about money that i did something stupid, if you know what i mean, but am not letting things get that bad anymore.

Thanks

M & J

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 1100
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2500

Monthly Expense Details
Mortgage................................ 787.46
Secured loan repayments................. 457.1
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 38
Gas..................................... 44
Oil..................................... 0
Water rates............................. 24
Telephone (land line)................... 0
Mobile phone............................ 100
TV Licence.............................. 11.95
Satellite/Cable TV...................... 67
Internet Services....................... 16.5
Groceries etc. ......................... 170
Clothing................................ 50
Petrol/diesel........................... 120
Road tax................................ 10
Car Insurance........................... 25
Car maintenance (including MOT)......... 30
Car parking............................. 50
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 33.6
Contents insurance...................... 0
Life assurance ......................... 47.79
Other insurance......................... 37.38
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Milk.................................... 20
HP...................................... 46
Total monthly expenses.................. 2305.78

Assets
Cash.................................... 0
House value (Gross)..................... 150000
Shares and bonds........................ 0
Car(s).................................. 200
Other assets............................ 0
Total Assets............................ 150200

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 130000...(787.46)...0
Secured Debt.................. 45000....(457.1)....0
Total secured debts........... 175000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
HSBC...........................3500......70........0
EGG............................3600......70........0
M and S........................3200......80........0
Argos..........................400.......10........0
HSBC Overdraft.................800.......30........0
HSBC Overdraft.................800.......30........0
HSBC Loan......................1000......40........0
HSBC Loan......................15000.....266.......0
Barclay........................500.......10........0
Total unsecured debts..........28800.....606.......-

Monthly Budget Summary
Total monthly income.................... 2,500
Expenses (including secured debts)....... 2,305.78
Available for debt repayments........... 194.22
Monthly UNsecured debt repayments....... 606
Surplus(deficit if negative)............ -411.78

Personal Balance Sheet Summary
Total assets (things you own)........... 150,200
Total Secured debt...................... -175,000
Total Unsecured debt.................... -28,800
Net Assets.............................. -53,600

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

======== Enter any other useful information below ========

e.g. the number of adults & children in the household, the number

of cars included in the SOA or anything else that may be useful.

Miss_Piggy_2

Hi There

Obviously you already realise the mobile bill is huge! Is there no way of getting out of this?

Also, your groceries is quite high for two people. We have two adults and a toddler in our house and I spend £130 a month.

I seriously believe an IVA isn't the ideal option for you. Why not speak to the CCCS or Payplan about a Debt Management Plan? It may be the better option for you.

P.s Whats the £20 for milk for!?

Miss P
xx

pepe2008

Bit pushed for time, the obvious things are the Mobile Phone, internet and satellite costs, but more importantly DONT GET SOLD AN IVA UNTIL YOU HAVE TALKED TO A FEE FREE DEBT MANAGEMENT SERVICE!!!

e.g Log on to CCCS website and do their Debt Remedy, or ring them.

IVAs do not normally offer the solution they are sold as providing....an IVA Company will not agree with this statement because they make 000's.

Ames

I really don't think an IVA is a solution. They're very rigid - if you had to have any more time off and couldn't afford the IVA payments you could be made bankrupt. A DMP would be much more sensible.

Miss Piggy, I'm guessing that was a mistype, I don't think anyone could be fed for £10 a month!

Miss_Piggy_2

Ames wrote: »

I really don't think an IVA is a solution. They're very rigid - if you had to have any more time off and couldn't afford the IVA payments you could be made bankrupt. A DMP would be much more sensible.

Miss Piggy, I'm guessing that was a mistype, I don't think anyone could be fed for £10 a month!

Just changed it! God, I wish I COULD feed us all for £10 a month!!:rotfl:

looktothefuture

warren100uk wrote: »

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 1100
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2500

Monthly Expense Details
Mortgage................................ 787.46
Secured loan repayments................. 457.1
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 38 - Could you renegotiate this Elec/Gas? Together it's £82.00, possibly switch supplier?
Gas..................................... 44
Oil..................................... 0
Water rates............................. 24
Telephone (land line)................... 0
Mobile phone............................ 100 - Possibly renegotiate with your Service Provider, they may be able to switch your tarrif half way through your contract?
TV Licence.............................. 11.95
Satellite/Cable TV...................... 67 - Could you switch your package to something cheaper without loosing the quality of TV you are watching at the mo? Failing which, could you switch to Freeview when your contract is up?
Internet Services....................... 16.5
Groceries etc. ......................... 170 - Isn't alot for 2 ppl, but you could cut back on luxury's you really don't need. Have a look at the MoneySaving Old Style Thread for good ideas.
Clothing................................ 50 - Do you spend this every month? Why not halve it and used elsewhere?
Petrol/diesel........................... 120 - Do you spend this a month? Could it not be dropped slightly and used elsewhere?
Road tax................................ 10
Car Insurance........................... 25
Car maintenance (including MOT)......... 30 - Do you put £30.00 away a month or is this a yearly fee?
Car parking............................. 50 - Seems high, could this not be lowered slightly?
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 33.6
Contents insurance...................... 0
Life assurance ......................... 47.79
Other insurance......................... 37.38
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0 - Not budgeted for?
Entertainment........................... 0 - Not budgeted for?
Holiday................................. 0
Emergency fund.......................... 0 - Not bugeted for?
Milk.................................... 20
HP...................................... 46
Total monthly expenses.................. 2305.78

Assets
Cash.................................... 0
House value (Gross)..................... 150000
Shares and bonds........................ 0
Car(s).................................. 200
Other assets............................ 0
Total Assets............................ 150200

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 130000...(787.46)...0
Secured Debt.................. 45000....(457.1)....0
Total secured debts........... 175000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
HSBC...........................3500......70........0
EGG............................3600......70........0
M and S........................3200......80........0
Argos..........................400.......10........0
HSBC Overdraft.................800.......30........0
HSBC Overdraft.................800.......30........0
HSBC Loan......................1000......40........0
HSBC Loan......................15000.....266.......0
Barclay........................500.......10........0
Total unsecured debts..........28800.....606.......-

Monthly Budget Summary
Total monthly income.................... 2,500
Expenses (including secured debts)....... 2,305.78
Available for debt repayments........... 194.22
Monthly UNsecured debt repayments....... 606
Surplus(deficit if negative)............ -411.78

Personal Balance Sheet Summary
Total assets (things you own)........... 150,200
Total Secured debt...................... -175,000
Total Unsecured debt.................... -28,800
Net Assets.............................. -53,600

There are a few comments I've made in RED, something that stands out is your petrol a month... I may use my car often but my petrol is no where near that amount. Also your parking seems to be slightly high, could you either find cheaper car parks close to where you are going or use public transport?

I've learned that you really do need to budget for what may seem unnecessary... for example, the haircuts, entertainment and emergency fund.

There were a few things you say you are locked into for the remainder of the contract - could you possibly renegotiate this with your Service Provider in the duration of your contract? I know SKY and Virgin do allow changes from 1 month into the contract. Not sure on mobile providers though as I am on PAYG.

Good luck for coming here and make yourself comfy... we're a very friendly bunch and believe me, you will learn alot!

GeorgeUK

Mortgage................................ 787.46
Is this interest only?

Secured loan repayments................. 457.1
Was this consolidation of a previous debt?

Council tax............................. 100
If paying over 10 months, can you ask to pay it over 12?

Electricity............................. 38
Gas..................................... 44
Check the comparison sites to see you are getting the best deal. Make sure you turn everything off at night and use energy saving bulbs

Water rates............................. 24
Is this metered? Are you using a water hippo or similar in your cisterns?

Mobile phone............................ 100
PAYG?

Telephone (land line)................... 0
Satellite/Cable TV...................... 67
Internet Services....................... 16.5
Can you get this in a package? Might be better with freeview until you can afford satellite

Groceries etc. ......................... 170
Have a look at the old style board for meal plans. Have you moved down a brand? (Shops own)

Clothing................................ 50
Every month? Can this be cut?

Car parking............................. 50
Is there a cheaper alternative to having the car?

Buildings insurance..................... 33.6
Contents insurance...................... 0
Life assurance ......................... 47.79
Other insurance......................... 37.38
Again, check the comparison sites to see you are getting the best deal. (uswitch, moneysupermarket)

Milk.................................... 20
Not part of groceries?

HP...................................... 46
Sauce? Should this come under the debt section?

We need to bring down your expenditure so that one of the free debt charities may be able to assist. If you entered into an IVA, you would need to make sure that payments were met or you could still be facing bankruptcy.

You said you are meeting your minimum payments, but struggling - how are you managing to find about £600 extra each month?

RAS

And when you do the comparisons on the insurance etc, use www.quidco.com or another cashback site to get apid for the switch.