IVAs, are they good? Help needed :(

biglad

Ok this is very hard for me and is the first step i am trying to make.

Through a combination of overspending and losing job due to illness i have got debts of between 25 - 30k. I was thinking about applying for an IVA but not sure the pros and cons of these.

I work 25 hours a week employed and the rest self employed. my income each month after bills etc is around £400. I understand it would be easier if i put all my incomings and outgoingings but i know certain people who read this forum who i wouldnt want to know my problems for personal reasons. A few people really close to me know my situation so im not keeping it to myself

the debt is really starting to stress me out, especially the letters i keep getting demanding money that i just havent got. i really need to sort something out, and i dont want to go bankrupt and have been told an IVA is the best option

I have no posessions of value, live with parents and drive my fathers car so its not like i can sell any possessions

Any help would be much appreciated

Thanks in advance

biglad

i forgot to say that i have no way of paying off the debt and the interest is just crippling me. prob was egg giving me £9,500 on my card with no job, i had depression which made me spend, i know its weak but i just used all the credit i had available when i was off work with an illness and lost my job and had to leave my uni course as it was sport

milliejon

Welcome biglad! You're not weak - just human like the rest of us. My debts are all from spending and enjoying myself due to depression and a divorce. We live and learn.

I have no experience of IVAs but wondered if you had thought about a debt management plan with a charity like the National Debtline or PayPal etc.

biglad

was just reading on the forum elsewhere about this payplan (i think thats what u mean instead of paypal) lol

at this moment i cant get in touch with them as my mom could over hear and there are enough stresses in our family atm that i dont want her to have this. My girlfriend and brother know my complete situation and they are helping me.

money is the start of all evil. the scary thing for me is im 22. i cant go bankrupt as i work for myself and i need a bank account. i think payplan look one of my best bets

milliejon

PayPal - that's funny! I wonder where my head's been tonight!!

Anyway, have a look at this thread. I've been giving my experience in setting my own up. I only made one quick phone call to National Debtline, and the sent the pack through and I did all the work myself.

Best of luck, and keep us updated. There are loads of friendly people on here, with a huge amount of experience. There will always be somebody to help.

biglad

thanks for that, ive had a look

the thing is i have no way of paying off my creditors with a debt management plan, its spread over too many companies so was thinking an IVA the only way for me. i just want a fresh start and the stress its causing is awful, plus family problems are not helping towards the situation at all.

i will get in touch with payplan tomo and see what they can do for me

milliejon

My debt was around £30k when I started the DMP and I had less than £400 per month to pro rata. OK - some companies only get just over £1 per month, but others get over £100!

I've now paid off 20% of the debt (in 18 months) and have 5 years left to pay (based on my current situation).

biglad

just got off the phone to a REALLY helpful bloke who basically said IVA is my only option, but slight problem as im self employed, although i have just took on a part time position to help me out. hes gona get back in touch with me tomo so hopefully things will be getting sorted, massive relief to get the ball rolling

Chortle_2

who was this helpful bloke? Don't mean to rain on your parade, but are you sure he won't profit from you going for an IVA?

For some people, it is the best thing to do, but as you won't tell us your situation, its very hard to tell. Just be very wary, and work out what is in it for anyone who gives you advice - whether they are nice or not

debtdestroyer*

Hi, i just thought i'd get my 5 pence worth in. I'm in an I.V.A and I had debts of around £30 k and I pay £235 a month for 4 years and £335 for the last year. However, I wished that I had sorted my debts problems myself rather than doing an I.V.A. Most of my final debt was interest on loans and PPI. I wished I had cancelled all PPI on my debts and shifted it to 0% credit cards and I'm pretty sure I'd end up paying the same back, over the same period of time, but saving my credit rating instead, and not paying a company a small fortune to do this! If you do decide to take an IVA please use either CCCS or PAYPLAN, all the others are just money grabbing companiess.
Sorry if it's a bit long winded but I just thought I'd give you an example of figures Oh and to have a rant!! LOL:j

livinginhope

Got to agree with chortle and debtdestroyer,I find it odd that an IVA is being considered as the only option,Payplan and National debtline try to avoid IVAs if possible,are you sure this company are legit? we have debts of 108k and are on a DMP with Payplan,we only pay 115/month and have been advised not to go down the IVA route if at all possible.Speak to a few more companies (non fee charging) before you decide what to do.Good Luck