IVA and starting a family

mozzyc

Hi

My husband and I (both in our 30's) have been on a DMP with payplan for the past 3 years. We pay £672 per month.
This was due to end 2010, then Jan 2011 now its March 2011. The scary thing is, that the figures that payplan have got on the Justabank website, and what the actual figures are that we owe, and so very much different. Due to added interest over the past 3 years, it just doesn't feel like we've gotten anywhere.
Some payments to companies don't even cover the interest charged. We've asked over and over for the interest to be taken off, but with no success.
Payplan say that after the 5 years, they will write to all the companies and ask them to write off any added interest over the 5 years, but that is not guaranteed. We could end up still paying for quite a few more years.

We've been putting off starting a family for quite a while, but really, we're not getting any younger, and with no end in sight for the DMP, have spoke to payplan and told them we'd like to start and what are our options.

Taking into account child care costs in London (roughly 700-800 per month), rent, council tax, utility bills and all the other sundries, it just doesn't leave us with much. And believe me when i say our belts are tight already. We don't go out, we budget shop and don't spoil ourselves. Which is fine for us now, we know this is how it has to be when your in debt.

Would an IVA be a better solution for us when i do fall pregnant?
We owe just over 25k, (on the justabank it says 16k but this is without all the interest charged).
Do they take into consideration childcare costs and the extra expenditure of having a baby?

We've been a couple for 15 years, and we're ready for this in so many ways, except financially. I really wanted to wait for the DMP to be over, but now, there just seems to be no end in sight, and i'm just so confused as what to do.

Any advice would be greatly appreciated.

Thanks

RAS

Hi

IVAs are suitable for a very small group of people whose incomes are secure or who need to prevent bankruptcy for professional or employment reasons or have equity they wish to protect..

They are not a magic bullet and we really cannot advise you of anything without a full SOA.

mozzyc

HI
Thanks for getting back to me. I understand that. I think more than anything I just needed to talk about all of this. I just don't know if we are being totally foolish in starting a family, if we should just leave it for now or not.
Or if there are options available for us if we do.

I just don't see how if the creditors aren't taking the interest off now, why would they do it at the end of the DMP.
And even though we've been paying the amount every month for the past 3 years, we still get threatening and upsetting letters from creditors day after day, and its just so stressful. We really are trying our best. But the threats of court action and bailiffs is never ending.

RAS

Hi

You may be interested in this

http://www.oft.gov.uk/news/press/2009/20-09

This give you an idea of what the OFT is trying to stamp out.

if any of these companies are doing similiar things, please report them, as they fall foul of OFT guidelines.

spenderblender

If you entered into an IVA that would last for another 5 years on top of what you have already spent on the DMP. Have you any assets that need protecting that would make you want to drag it all out longer. If you have negative equity in your house - if you own it- you wont neccessarily lose it through BR. I would advise you to have a chat with one of the debt charities who don't charge for advice.

mozzyc

Thanks for getting back to me guys.

I've read that article now, thanks.
Some creditors are really good with this whole thing, but then you have others that just seem relentless in sending out these demands and threats.

No, we don't own a house, we rent privately, and don't own any major assets.

I think for now we'll stick with the DMP, but my biggest concern is all the added interest. Some payments don't even cover the interest on the account.
At the end of the DMP, payplan have said they'll ask the creditors (the big one being lloyds), to write off any added interest since the beginning of the plan.
But how often does this happen, and if it doesn't, this could mean another 4-5 years.
I've tried looking up stories from other people on DMP's to see if this has happened (the interest being written off), but just can't find any info about it.

I just pray for the day that all this ends, and just want to start my life. Right now, we feel stuck in time, with everyone else around us starting families, creating homes etc.

RAS

Hi

Have you put an SOA on here?

And reclaimed any late payment and PPI charges?