IVA - newbie terrified by them

loopy.magic

I have a huge amount of debt and was wondering if anyone could advise me on whether an IVA would suit me:

Credit Cards: £38,000
Loans: £25,000
Overdraft: £4000

Annual Salary: £55,000
Renting, no mortgage. Never missed a payment, cut down on non essential expenditure.

I'm just barely breaking even every month, my total amount owed is very slowly coming down but it's very stressful and there are some months that I come up short and have to pay the bare minimum for the credit cards or dip into more of the overdraft.

cakey

hey

if you want to get an accurate picture of your finance and help amending budgets do a SOA. that way we can see if you can afford what your paying, need an IVA or just need to modify your outgoings

http://www.makesenseofcards.com/soacalc.html

loopy.magic

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 3350
Partners monthly income after tax....... 0
Benefits................................ 132
Other income............................ 0
Total monthly income.................... 3482

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 1000
Management charge (leasehold property).. 0
Council tax............................. 164
Electricity............................. 70
Gas..................................... 130
Oil..................................... 0
Water rates............................. 23
Telephone (land line)................... 25
Mobile phone............................ 50
TV Licence.............................. 13.33
Satellite/Cable TV...................... 70
Internet Services....................... 0
Groceries etc. ......................... 600
Clothing................................ 150
Petrol/diesel........................... 50
Road tax................................ 13.33
Car Insurance........................... 37.5
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 24
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2440.16


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 400
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 3900

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................14000.....272.......6.5
Loan...........................11000.....280.......6.4
Credit Cards...................38000.....555.......8
Overdraft......................4000......35........18
Total unsecured debts..........67000.....1142......-


Monthly Budget Summary
Total monthly income.................... 3,482
Expenses (including HP & secured debts). 2,440.16
Available for debt repayments........... 1,041.84
Monthly UNsecured debt repayments....... 1,142
Amount short for making debt repayments. -100.16

Personal Balance Sheet Summary
Total assets (things you own)........... 3,900
Total HP & Secured debt................. -0
Total Unsecured debt.................... -67,000
Net Assets.............................. -63,100

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

cakey

loopy.magic wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 3350
Partners monthly income after tax....... 0
Benefits................................ 132
Other income............................ 0
Total monthly income.................... 3482

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 1000
Management charge (leasehold property).. 0
Council tax............................. 164 -Could you get this over 12 to reduce payments ( would give you an extra 30 a month)
Electricity............................. 70 - very high especially as you have gas aswell, look to switching and turning everything off
Gas..................................... 130 - This is massive!!! you really need to look for cheaper, or reduce the amount you are using
Oil..................................... 0
Water rates............................. 23
Telephone (land line)................... 25
Mobile phone............................ 50
TV Licence.............................. 13.33
Satellite/Cable TV...................... 70 _ reduce this package down, at least to minimum pay £30
Internet Services....................... 0
Groceries etc. ......................... 600 _ again this is massive for a houselhold of 4. there are some boards on here with meal ideas, you could reduce easily by £200. £350-£400 a month would be ok for a family of 4
Clothing................................ 150 - Do you need all of this on clothing - could you reduce to £50 for time being
Petrol/diesel........................... 50
Road tax................................ 13.33
Car Insurance........................... 37.5
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 24
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2440.16


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 400
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 3900

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................14000.....272.......6.5
Loan...........................11000.....280.......6.4
Credit Cards...................38000.....555.......8
Overdraft......................4000......35........18
Total unsecured debts..........67000.....1142......-


Monthly Budget Summary
Total monthly income.................... 3,482
Expenses (including HP & secured debts). 2,440.16
Available for debt repayments........... 1,041.84
Monthly UNsecured debt repayments....... 1,142
Amount short for making debt repayments. -100.16

Personal Balance Sheet Summary
Total assets (things you own)........... 3,900
Total HP & Secured debt................. -0
Total Unsecured debt.................... -67,000
Net Assets.............................. -63,100

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Hi, well done for posting on here.. i have put some ideas up there to help. if i worked it out correctly you could save around £400 each month, and that could go on paying off debt. you dont seem to need an IVA, just tighten you belt in a few areas. i hope this helps, im sure there will be a few other on here who will have a few ideas

loopy.magic

Thanks, will look into cutting down in these areas.

The gas and electric bills are fixed amounts which I think have been miscalculated by the energy company and will result in them owing me money soon. We're an average household with average usage so I think that part is fine.

Earlier in the year they were taking a combined £100 per month, but for some reason they thought this wasn't enough, will probably switch to another supplier who can do proper maths !

Charco_2

There are certainly areas there that you could cut down some of your expenditure on.

It would be hard to tell what type of Debt Solution, if any, you would need.

You can speak to people and find out what options are available - dont pay anyone any money for advice, you should be able to get that for free both from the debt "charities" and from some of the fee paying companies. (Some companies try to charge upfront fees and referral fees etc but others dont so use them!)

When you know how much money you would have left over each month (including amounts you could reasonably save from your current expenditure) then you'll have a better picture of where to turn... Would you have enough surplus to cover the monthly demands of your creditors?

milothewestie

i went bankrupt oweing much the same income 2300,no repayments to pay,looks a good solution to you too,just get rid of your car or the or could have an interest in it,its not for everyone but its worked for me feel free to pm me if you have any questions