IVA or PayPlan

NickToye

Hi,

I have made enquiries at PayPlan, and with Uk Insolvency Helpline. I'm still waiting for Payplan to get back to me, what exactly will they do to help?

Also what are people's thoughts on IVA? Can I still get a mortgage, will I have to pay a higher rate on a mortgage.

Any help or advice on either of these would be great.

aimme13

hi, i am with pay plan, they will make an appointment to call you back, when they do they will go through everyone you owe money too, they will then ask for your income and then go through absolutly everything in your monthly budget, will prob cover things you havnt thought about.....they are quite generous with allowances. they will then call you back and let you know if they will accept your case and after income-minue-expenditure they will tell you how much you will be paying them each month......they will then contact your creditors (with your consent) and put forward the proposals......you can then no longer take out any form of credit or continue to use credit cards o/draft etc....and you will have to change to a basic bank account.

You can make one off payments and if your circumstances change you can increase payments.

Not sure about the mortgage but im guessing you wont be able too as it would be seen to be taken out more credit.....your creditors would then question why they arent getting the additional money that would be going on your mortgage....and wouldnt think your credit rating would pass..

I hope this is some help......it is only in my experience of payplan, im sure others will help you with other information

Payplan is not the easy option but a good one if you have no other way of meeting minimum payments.

good luck

NickToye

How long does it take to pay off though, do they have a five year plan like IVA?

Also what do you mean by a Basic Bank Account?

aimme13

As far as im aware untill the debt is paid off.

A basic bank account is when you have no overdraft facility and most give you a solo/electron card. it just prevents you from getting anyfurther credit. Also it has to be with a bank that you have no debts with.

Just to give you an idea.....my debts are around £8,000 i pay £50.40 a month, this is divided up between 1 loan 2 credit cards a store card and an overdraft. It will take arond 13 years to pay off!! but i hope to increase my payments soon. (i have just increased from £40 to £50 and it has knocked 3 years of my DFD :j ) and i havnt really noticed the extra £10.

lynzpower

Basic bank accounts usually have solo or electron & no switch/ delta. It also means no overdraft, and others have mentioned buying over the internet with it almost impossible, due to the electron/solo issue.

aimme13

Mine is a solo card and havnt had any problems buying over the internet.....ryan air never used to accept it but they do now, other than them not had any probs

NickToye

I presume once its all paid off then you can move to an account that lets you have a switch card

NickToye

Also can you pay lump sums? because my debts are around £21,500 and I can afford around £500 per month.

Chortle_2

Are you able to cover your minimum repayments at the moment with that £500 Nick?

CLAPTON

post an SoA

NickToye

Barely, there are too many variables, with my business I may have a 75% income month, and the next month I may have 125% income.