My Mum

StudentMoneySaver

Post removed. Thanks for the help.

Tixy

Hi

This is pretty worrying. If she is in an IVA she shouldn't be borrowing elsewhere.
If she has an IVA they should have worked out a budget for all her essentials that she can manage with when working out how much she is paying in to her IVA each month.

Has she asked for your help (help with sorting out her finances, not just lending her money). If she will let you help her and gives you access to her finances then the first thing that would help you get an understanding of her full situation would be if you can find out all the information to draw up a statement of affairs. http://www.makesenseofcards.com/soacalc.html
This will show her incomings, outgoings and then her debt repayments.

Once you have that you should be able to see the extent of her problems and if you are still struggling then post the SoA on here and people will be able to give you more advice.

The other thing she can do is go back and talk to her IP (insolvency practioner) who administers her IVA. But personally I would hold back on doing that until you know more about the situation as if she has broken the terms of her IVA you need some advice on the implications of this before talking to them about it.

tbourner

If she's purposefully witholding her financial info whilst simultaneously asking for your help, then I would suggest she has more to hide than her debts.

Not knowing anything about you or her is it possible she is abusing drink or drugs? Gambling either online or somewhere else? Addicted to anything, say buying shoes or luxury clothing items etc.?
Don't take offence, like I said I don't know the situation, just seems like she has something more 'embarrasing' to hide.

StudentMoneySaver

Post removed.

Tixy

Sounds like it could well be an IVA, other option could be a DMP (debt management plan), which is less formal.

SusieT

She could be paying someone like CCCS or payplan to administer the debt. If she is make sure its free otherwise she will be paying a percentage to them instead of it all going on her debt.

Well worth sitting her down for a chat and seeing whats happening.

tbourner

IIRC an IVA is the max you can afford to pay to the people you owe, and after 5 years it ends no matter how much more you owe. So I doubt it's an IVA.

StudentMoneySaver

Post removed.

StudentMoneySaver

Post removed

Tixy

An IVA lasts for 5years unless you are unable to release any equity from your property in which case it is extended to 6years, so it could be that if her house does not have any equity.
Either way with a DMP or IVA a budget is worked out to see what her basic living costs are (and they do allow small allowances for things like haircuts and clothes) and then whatever is left over is paid towards her debts. With an IVA the creditors have to formally agree to the proposed IVA repayments as it is a legal agreement and they usually don't receive 100% of the debt back (70-80% is typically what you pay back). With a DMP you keep paying until all your debts are cleared, for some people that might be 2years, for others it could be 18years.

IVAs can seem scary, hopefully if she does have one she was properly advised on it. It sounds like whichever she has she hasn't been sticking to the budget for one reason or another, so she does need to address things not carry on borrowing money from you and expensive places like cash convertors.

Hope she will open up to you and let you try to help. It sounds like she needs it.

Fiddlestick

StudentMoneySaver wrote: »

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I believe she has an IVA (is that what they are called?) and is paying back an overdraft that was withdrawn by her former bank. I can't see where else her money is going except on the mortgage and bills.

The only way she can get through the month financially is by borrowing more money, I guess a lot of her wages go on repaying this (its a vicious cycle). I used to be the main source of borrowing but over the last 6 to 8 months, she has been taking things to Cash Converters. She lost a brand new phone and my PlayStation 3 (I wasn't aware it was there, as I was at Uni). This is what has prompted this post, she needs to come up with £200 by the end of today in order to recover a laptop I lent her and my brother's television. I have agreed to lend this to her on the basis that it is cheaper than paying the holding fee.

I have asked to see her bank statements, so I can see where the money is going, but I'm not sure if she will let me. I think she is in denial about the extent to which this effects the family.

No offense, but if she is in the sort of situation that she is stealing you and your brother's property and pawning it for money then you are a mug to help her unless she is willing to be 100% open and frank about her financial affairs.

Right now you just have her word about what is going on, but you really need to see all the paperwork and statements and to account for every penny.

Like I said I don't want to offend you, but you may well be throwing good money after bad if she isn't willing to show you all the paperwork.

It's good and admirable that you want to help her, but she needs to be honest with you in exchange.