Just admitted a problem and approached DFD?

minniesmommy

I am new on here and would really appreciate some support.
I have £23,000 debt from my student years which is mainly a loan, credit card and overdraft with Lloyds for a total of £10,000 and the rest is Choice catalogue and other credit cards.
The payments became unmanagable when I had to take time off work for an injury. The fees just grew and grew.
I approached Debt free direct last week who reccommended IVA. I posted my pack back last Monday and have heard nothing since.
I am concerned as defaulting is new to me and I wondered what happens from here? If the IVA is not accepted and DMP is started, then can the creditors pass to collection agency and CCJs happen in the near future?
I rent a home and do not drive a car so my debts are all unsecured and taken out before 2007.

Extra Information.

I work part time now as a nurse. I clear £1000 a month with everything taken out, I used to earn £30,000. I will only be able to work part time now due to illness.
I rent a home as my job required I move around allot.
My minimum payments are now £800. They keep going higher due to MBNA and RBS putting interest up all of the time. The TSB loan was taken out Jan 2007 and was for £8000 - the interest bumped that up to £12,000. I now owe £5000 on that Loan.


Thanks all.
I am working at the moment, only had a month off. It was a back injury ( I am a nurse) It is permanant and painful. The hospital wont pay out for it either.

DFD sent a pack out with income and expenditure and a paper for me to sign so that they will speak to all debtors as the nominated third party.they are looking at my paperwork at the moment.
I have £250 free income at the end of the month. My minimum payments are £800 due to MBNA and RBS bumping up the APR rates monthly

katsu

Hi minniesmommy,

I am not an expert but clever people will be along soon. I don't know who debt free direct are. most people here recommend free organisations like Payplan (who I think do IVAs) CCCS and CAB or Christians Against Poverty. Maybe contact one of them for a second opinion?

If you have no home or car I'm not sure why an IVA is best for you - make sure it is, as I understand they are less flexible than DMPs.

Tixy

Hi minniesmom and welcome to MSE

Well done for admitting you have a problem.
Can I just check that you are now working again? (you say you had time after an injury).

What have you sent to DFD? Is the pack your acceptance of an IVA and signed paperwork etc? or is it just a completed income & expenditure for them to review first?
Have you tried calling DFD since?

I too would suggest that if possible you get some extra advice from one of the charities as soon as you can. As its probably the quickest option you might want to complete the CCCS online debt remedy tool, which might well give you an idea as to whether an IVA is the most appropriate option for you. You might also want to read this (if you haven't already) - http://www.moneysavingexpert.com/loans/pdf-iva-guide.pdf

Just in case you do think the IVA is not suitable then what does the paperwork from DFD say about cancelling? can you dig it out and have a look?

I don't know but I imagine you might have something like 14days to cancel so just in case you decide you want to I would try to get some alternative advice quickly.

Also you might want to post up a statement of affairs on here, to see whether people on here can give some advice as to whether an IVA looks right for you (although most of us are not professionals we still may be of some use).

Good luck

Numpty_Monkey

As the others have suggested contact on of these Non-profit Debt Counsellors' List

IVA's a suitable only for a few people, have a read of Martins guide
It doesn't sound like an IVA is for you;)

If you go on A DMP, your creditors will put defaults on your credit record, they'll do that if you fall behind with payments anyway, better to get them in early:D

If you put your SOA up on here, the good and clever peeps:A, will see if there's anyway
to trim your or structure your budget so you can carry on without needing to resort to anything
Use this link to the SOA Calc

As for the pre 2007 thing that goes to the really clever bods:T

crispycornflake

I agree with the previous posts, if I were you I would try the cccs online debt remedy. That will give you the best solution for your circumstances and it is totally free, they are a charity. From what you have said I think a dmp would be more suitable than an iva.