IVA good idea for me?

vixx

Hi there.

I have got myself in to a pickle and am considering taking out an IVA to put an end to my debt problems.

I owe aprox £30,000 which is spread about on various credit cards, overdrafts, loan and store cards.
I also owe aprox £20,000 on my student loan.

It is becoming next to impossible to meet the payments and I have been moving money around each month to try to pay it all.

I rent with my boyfriend and own my own car (worth aprox £2,000 give or take) but aprt from this I have no savings or assets.

The way things are at the moment, my debt just keeps increasing and I can't see a way out, it is just going up and up, so the idea of paying a fixed amount for 5 yrs and then being debt free is appealing. I understand this means I will not be able to take any unsecured borrowing for this period and that my credit file will be severely affected.

I am a travel agent so I get a basic salary with an uncapped commission structure - how would they calculate my wages to do an IVA? My wages fluctuate every month and some months I can earn 50% more than others, but nothing is guaranteed.

Does anyone have any advice for me? Are IVA's a good choice under the right circumstances?

I am also worried about the number of companies out there as I want to go with a good one if I choose to go down this route, any advice would be much appreciated.

cabbage

Hi

Before deciding to take out an IVA get some free advice as to what your options are.

Many people take out an IVA and have no problems but they can be very expensive, adding as much as £8,000 - £9000 to the amount you owe just to cover the practitioner's fees.

Bankruptcy or a Debt Management Plan are also options depending on your circs.

Go to Citizen's Advice Bureau and get some free advice and discuss what your options are.

I'm not a financial adviser or specialist debt worker so can't say what is best for you but I urge you to check out the pros and cons of the options available and make an informed choice.

You can also speak to National Debtline www.nationaldebtline.co.uk who can help.

RAS

Welcome

Start by reading martin's IVA Guide http://www.moneysavingexpert.com/loans/pdf-iva-guide.pdf

Then ring one of the debt charities.
http://www.moneysavingexpert.com/loans/debt-help-plan#help

An IVA is only one option but you need to be confident that your personal circumstances and job situation are not going to change over the next five years, as if the IVA fails you will probably have to go bankrupt. if you are female this means materity is not an option nor is buying a house for the duration.

And is your job absolutely secure?

vixx

tHANKS GUYS, I HAVE A PHONE APPT WITH THE DEBT Councellors charity on 2nd Feb (1st one they have free - apparently they are overrun with calls for help!)

My job is pretty secure but with the way things are, nothing is 100%. I also don't plan on having any children for at least another 8 yrs or so - as much as you can plan these things.

I am worried that choosing the bankrupcy route will affect my rented flat. One of the conditions of our contarct is that we have to notify them if one of us goes bankrupt, can they chuck us out because of this? Other than this, I may go down this route as I have no assets to speak of.

RAS

Do you owe rent on the flat?

The OR may or may not advise your landlord if there is not outstanding debt. Obviously he is in touch if you are in arrears. Most people find that if they talk to the landlord in advance, even those with these clauses are OK.

vixx

No, we rent the flat and we are not behind on the rent, council tax or any household bills.

The only thing that scares me of bankrupcy is being kicked out of our flat by the landlord/rental agency!

RAS

Also check out the situation with the student loan - that may not be included.

cabbage

Hi
Some tenancy agreements include a clause regarding bankruptcy. Read yours to find out. As the OP said, having a word with your landlord beforehand will help.

Good luck with your appointment.