Am i doing the right thing?

Bobby81

I have posted before, but anyway we have now applied for an IVA, im still unsure but i cant really see no way around it. We owe about 29000 not including the car, 2 loans, 1 with LLoyds for 17600 APR 6.8% pay 407 a month, 2nd Loan also LLoyds 8000 11.8% pay 181 pm, then the car credit which is 180 a month, 2000 overdraft that we live in, if it wasnt for the car we could probably be ok, but we have just gone right up to the limit if that makes sense. We work so hard and husband even does a 2nd job for extra income so we can afford 'some' luxurys and everything that we work for is going straight out of our pockets.

We have been very silly, i work part time with a 10 month old and a 3 year old,would do full time but childcare is just ridicolous.Anyway if we go through with this IVA, we will only pay 300 pound pm, plus 180 for car instead of 7-800 not including normal household bills on a 1700 income.

Our credit rating is so bad due to us moving around so much anyway so what have we got to lose? What do you think?

chevalier

Welcome to the board. IVA's are very tough, you abolutely HAVE to make the payments no matter what. A Debt Management Plan is similar, but you don't get settlement figures from the creditors. You do not say who is offering to set up the IVA, but if they charge a fee, then DON'T go near them. CCCS and Payplan do both of these things for free, and they are well respected by creditors, who will usually (but not always) freeze the interest on the debt.

Hopefully Lynzpower is around as she is very knowledgeable about this sort of thing.

If you post a Statement of Affairs (see southernscousers sticky at the top of the forum), then I am sure we can find some hidden slack in the budget to help you out.

Well done for posting
chev

lynzpower

Hi there

I did have a look here earlier, but wasnt quite awake Am now

As i understand it, all IVAs are fee charging, even payplan & CCCS run IVas and charge for them, DMPs with both these orgs dont, as you may hav epicked up on here if youve been reading a while.However, it is up to you to work out whether they are charging you the going rate, check with payplan & CCCS how much they charge for IVA management to check you are not getting ripped off. Xbigman & File Wizzard & Clapton better about this sort of thing than me, they may be along in a bit.

I do think that a SOA is a good idea, just so we can make sure you are not being talked into an IVA so the co can get its fees, as there have been a few cases of this in the press recently.

lynz
x

Bobby81

We have been keeping up our payment on our loan now for the lasttwo years and my husband has a VERY secure job and even if he was sick would get paid etc, we have never missed a payment so the IVA wouldnt be a problem in that respect, we now pay 7-800 pound every month so paying 300 would be heaven....sorry hope that doesnt sound bad

Bobby81

1st Wage 1280
2nd Wage 470
Child Benefit 116
Tax Credits 780


Outgoings

Great Universal 35
Next 25
Gas & Elec -54
Phone & Net -41
Insurance -16.75
Car Insurance -48
Loan -407
Loan -180
Loan -181
child Trust -20
HP -13

Insurance -7.99
TV Licence 10.99
Mobile -54
Sky -46
Pet -14.99
Insurance -33
Nursery 1. child -432.25
Nursery 2nd Child -455
Food and Houshold - 320
Water - dont pay due to husbands job
Rent taken before we get paid Due to husbands job

Bobby81

You will probably tellme to change mobile package but its for the both of us and we get loads free and due to husbands job and often being away for 6 months at a time it seems quite good. I would feel awful to cancel the child trust funds too.

lynzpower

Well your pet insurance looks high - whos it with and for how many animals?
you dont really *need* sky
adn your food and household is high too

In saying that you are paying almost 1000 per motnh on nursery fees, which is never going to be a good thing. How long till they go to school

A DMP may be better as once they are in school you will be a grand a month better off under current circs.

But I guess its up to you really.

What are you unsure of with the IVA?

Bobby81

We pay 878 on childcare but receive 80% help towards it. If i could go full time we would be fine but just cant afford it with childcare fees.

I listen to people who are in an IVA and they never have any money and i think well how can that be, their payments have been reduced so much? If we went ahead we will save about 300 pound a month. So that scares me cause i think have i missed something? Or someone not telling me something?? Also is it true that anything over 500 pound you have to hand over to them?? I would love someone elses oppinion on how they are coping?

CLAPTON

a few things about IVAs

a. firstly these are agreement between your creditors and you ...no IVA supplier can guarentee the rate will be £300 per month or any other figure...its up to a vote by your creditors. Unfortunately because there is money to be made out of IVAs, some of the less responsible suppliers suggest you will get a low repayment rate but the reality may be very different.

b. all IVA providers charge money, but the better ones do NOT charge up front. So you only pay if the IVA is accepted.

You say you have applied for a IVA.
a. then presumably you have provided them with an SoA? Is that the one above?
b. What is their charging structure? (presumbly you have written details)
c. your SoA has to be realistic for five years...on your other thread people have made many suggestions but you have not incorporated these into the SoA above. Remember your creditors will see your SoA and form their own judgement on it.

I would strongly recommend that you contact Payplan or CCCS and seek their advice before continuing ... their advice is free and if they recommend an IVA they will be able to recommend a IVA supplier (Payplan have an associated company) although you are free to go elsewhere.

all_hours

bobby this is what I posted on your other thread - though it might not be relevant now that you are considering an IVA.

Husband Income: after tax 1280
Mine: 470
Child Benefit: 116
Tax Credits: 770
Total income 2636

Outgoings

Childcare: 878
Rent: 180
Elec: 21
Gas: 33
Council tax 85

Phone: 40
Mobiles: 53 these are high

Car Tax: 11
Petrol: 80
Car Insurance: 48
Car repairs:

Clothes:
Haircuts:
Christmas:
Birthdays:

Insurances: 40
Child trust Fund: 20
Food: 320
TV Licence: 10.5
Sky: 46

1st LLoyds TSb Loan owe £17600 pay £407 (APR 7.1%) 407 - How many months to go?
2nd Lloyds TSB Loan owe £8000 pay £185 (APR11.8%) 185 - How many months to go?
Credit Card: £6000 Limit owe £400 10 - What's the APR on this card
Car Loan £8200 pay £180 (APR 16%) 180 - How many months to go?
Overdraft:£2000 - What's the APR on this

Total outgoings 2647.5

Surplus/Deficit -11.5

There is no internet listed - is this part of your phone bill?

Your need to include an allowance for birthdays, christmas, haircuts, clothes, car repairs + servicing. If you don't when you need to buy new shoes for the kids you will put it on a card or the overdraft. Add up what you spend over a year and divide by 12 to get a monthly amount for these.

You food budget is high so that can be reduced - look at the old style forum.
You could get rid of sky or get the package changed to basic.
Mobile phone bill is high - if you're in a contract phone them and ask them to change your tariff to a cheaper one.
If the phone bill doesn't include internet then this is also quite high.

If you can halve your sky, mobile and phone bills this will free up nearly £70 a month to go towards the missing expenses.

You say you have 3 empty cards - post the APRs and credit limits for these and who they are with.

Did you only get your credit score or did you look at your report? Register with quidco and sign up for the 30 day experian trial- you'll get some cash back. If you can sign up for the free equifax trial too - I don't know if you'll be able to as you have already paid for a score from them.

233 is a low score - looking at your report will help you work out why so you can make steps to improving this.

Don't let this get you down. It will be hard at first but once you get your budget worked out and make a few changes you'll be able to see the light at the end of the tunnel.

Bobby81

Im totally confused about what to do now, i thought the IVA would be best cause i have a monthly payment and know exactly what im paying every month, i know for a fact if we get short i will start using the credit card again, i just know, i know that sounds awful but i need some kind of stability.