IVA or Debt Management Plan

Trolley_Dolley

Hi,

My boyfriend has a lot of debt and its been hard working out the exact extent of it, sadly it totals around £55K.
The majority of it in a Lloyds loan worth £37k - how they have allowed him to have that UNSECURED I will never know.

Anyway, he has been withdrawing cash over 3 credit cards to try to make minimum payments on everything and it has got to the point where he cannot now do this as he has reached all his limits and can no longer get any further credit and so will struggle now to make even the minimum payments.
He is 37 and we want to settle down together but he just cant see a way of ever repaying this amount of money whilst trying to actually have any kind of a life! Its totally getting him down and he feels he has ruined his life and has no hope of any future with me.

We are trying to decide what his best option is between IVA and debt repayment. Its all so confusing and overwhelming.
Please could anybody with any experience of either or both of these assist us in deciding what his best course of action will be


Thanks so much xxx

RAS

Hi

Your BF needs to talk to one of the debt charities listed here http://www.moneysavingexpert.com/loans/debt-help-plan#help

And to avoid the sort of people here http://forums.moneysavingexpert.com/showthread.html?t=1553559

In the mena time, so you can keep his ioptions open, do not take out any debt for him, do not take out any joint debts and do not open any joint bank accounts.

Whatever he decides will scrupper his credit rating and it pays to keep your clean if only so you can deal with landlord's credit checks.

Trolley_Dolley

Thanks RAS,

Ive spoken to National Debtline and they have sent me information on both IVA and DMP and my BF wants to try the DMP but after monthly outgoings he is probably only going to have around £300 available to make his repayments and currently they would be around £800 and thats just minimum payments!
Im worried if we pursue this avenue the creditors won`t freeze the interest and where does that leave him?

Currently we have nothing to link us together and iv`e no intention of taking out any loans etc for him.
We do want to move in together, I assume that if im not linked to him they cannot ask for anything from me?

Sorry if my questions are things you get asked all the time but this is all new to me and I find that the people at national debtline just talk at you rather than to you with all the jargon not pausing for you to ask any questions so when you get off the phone you are none the wiser what to do!

RAS

Trolley_Dolley wrote: »

Thanks RAS,

Ive spoken to National Debtline and they have sent me information on both IVA and DMP and my BF wants to try the DMP but after monthly outgoings he is probably only going to have around £300 available to make his repayments and currently they would be around £800 and thats just minimum payments!
Im worried if we pursue this avenue the creditors won`t freeze the interest and where does that leave him?

That's pretty standard.

Currently we have nothing to link us together and iv`e no intention of taking out any loans etc for him.

Good.

We do want to move in together, I assume that if im not linked to him they cannot ask for anything from me?

Correct and it is in his interests to keep it that way. You may well pass a crecit check for renting which he would fail.

As tiget says, the only stipid question is the one that is not asked.

Before he signs up.

Check whether he has PPI on any of these accounts. Reclaim it.

Check whether he has late charges on anyhting. Consider whether to reclaim it.

Can he shuffle any of his debts onto lower interest rates on exisiting cards?

Trolley_Dolley

RAS wrote: »

As tiget says, the only stipid question is the one that is not asked.

Before he signs up.

Check whether he has PPI on any of these accounts. Reclaim it.

Sent 1st letter off already to Lloyds/Halifax and Capital One.

Check whether he has late charges on anyhting. Consider whether to reclaim it.

No, he has always paid on time.

Can he shuffle any of his debts onto lower interest rates on exisiting cards?

I shuffled some debt onto a Barclaycard interest free last year from Halifax and recently applied for 3 credit cards and a loan only to be declined.
The debt has already caught up with him and dont want to keep applying only to be declined.

Have already switched his bank account to another one from Lloyds and when hes paid off the overdraft of £280 we will be closing that down as Lloyds are the biggest creditor and we dont want them having access to his incomings/outgoings etc.

Guess at this stage I am doing as much as i can until we decide what option is his best. We are doing an accurate budget plan tomorrow to see correct amount he has left each month.

RAS

I would seriously suggest that you try and get the Lloyds account closed before he starts either an IVA or DMP, even at the cost of not paying someone else.

Any chance of raising a bit on a car boot sale, e-bay, amazon etc?