It worked for me

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Well it was almost 6 years ago at the end of this month that I was desperately trying to get credit cards, loans, extra credit limits etc as all our wages were going on paying off existing credit and Xmas was only just around the corner. I was scared to answer the phone as I knew it would be a creditor asking me to make a payment.

After appying for another credit card I was refered by that company to an IP. It was a very emotional time, no sleep due to worry about debts and somebody was telling me down the phone that for half of what i was paying out already I could be debt free in 5 years with the remainder written off. First off I thought it had to be a con but stuck with it as I was so near a breakdown.

When I started the process they took all the details what the limits were and how much I was being paid. I got told to take my wages immediately out of the bank account I had as soon as they were in and set up another bank account with them (costing £12.50 a month). Maybe if I had a bit of foresight I should have looked around for a basic free account but at that time it was 'I'm going to do whatever you say'.

A member of the IP came to the house and got us to sign everything and went through the whole process and they then went to work on the creditors. It took three and a half months to get the creditors meeting set up, so phone calls from creditors and letters were in abundance but these were all refered to the IP who was happy to deal with them.

The worst day had to be the day of the creditors meeting and waiting for the phone call from the IP about the outcome. Out of the 12 Creditors only 5 turned up with 4 agreeing to it. So the outcome was it was accepted.

I'm not going to say its easy being in an IVA, it's far from it. My IP has been intouch regularly and was always willing to discuss matters on 6 monthly reviews to ensure that no more was being paid into the IVA than was absolutely nessesary. We took out 3 payment holidays which were recovered at the end of the IVA due to unforeseen car repairs etc. Plus family helping out if we were falling short on a month.

Now the completion certificate has turned up and I still keep having to look at it to make it all believable. The saga has come to an end and the future is bright. I'm fully aware it was all my doing that started this off and got into that situation. If anything now its made me so tight with money now but its a horrible lesson to learn.

For all those in an IVA or just about to start, stay the course, talk to your IP if your having problems, remember one day that certificate is going to be in your hands.
IVA Completed - 2010
"Wine for my men, we ride at dawn"
96
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Comments

  • kated_2
    kated_2 Posts: 10 Forumite
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    I just want to agree with this poster. I went into an IVA on 2002 for £140k. Settled with a remortgage in 2005 finally paying £80k. IVA is now in the past and I remain debt free apart from a now very small mortgage. I overpay on the mortgage each month and hope to have paid it off in another year and a half, so mortgage free before I am 55 years old.
    In 2002 this was not even a dream. The debts made me so unhappy and I honestly contemplated bankruptcy but am so glad I plumped for an IVA.
    The feeling of being debt free is second to none.
    I pay off my two credit cards every month without fail, but buy almost everything with my John Lewis card which gives me John Lewis vouchers each quarter based on how much I spend. Remeber these vouchers are absolutely free as I pay off my credit card evey month. I have saved this years vouchers which total £250 and am going to use them to buy all my Christmas presents.
    I only buy what I can afford and if i had one piece of advice to give to anyone just starting the IVA journey it is to never ever think that you need to buy something just because you deserve it.
  • patchy987
    patchy987 Posts: 433 Forumite
    First Post First Anniversary Combo Breaker
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    thanks to both of you guys for this, we are 4 years into our IVA and it feels like it will never end , we really struggle with our IVA as they make us live on just £60 a week for petrol, food, clothes and prescriptions. due to this we sometimes just want to give up so its nice to hear success stories :)
    trying to lose 3 stone by end of 2014;)
  • JokerDurden
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    Oh trust me I know the feeling patchy but just think you've done 48 months, only 12 to go. Its all worth it in the end
    IVA Completed - 2010
    "Wine for my men, we ride at dawn"
    96
  • JokerDurden
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    Does anybody know if I'm trying to do things too quick before the dust settles. I'm trying to repair my credit history so applied for the Capital One card (APR 34.9%) but have been declined obviously because my score on equifax is currently 198.
    IVA Completed - 2010
    "Wine for my men, we ride at dawn"
    96
  • Charco_2
    Charco_2 Posts: 1,677 Forumite
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    How long is your IVA over?

    The best thing I think in the first year (i'm no expert at this end of IVAs) is simply to make sure that all your defaults have been registered at the right time on your credit file... your IVA was six years ago so all these defaults should be vanishing off the bottom of your Credit file now or in a month or so... if any of these defaults weren't registered properly at the time (many lazy - or spiteful - companies like to wait a while and then register the defaults much later.. two or three years later which means they'll be on your file for another two or three years - but you can insist that they are registered back at the appropriate date (sorry of this is rather simple or basic for you, might be of use to others though).

    Once all the defaults start to vanish, the next step is to take baby steps... perhaps a credit card was a step too far so leave it a little. Refused credit leaves little footprints in your credit file so if refused now, leave it a few months before trying again... if there is nothing you need a credit card for then why not leave it for a very long time. In the mean time, approach your bank about a debit card.
    Would you ask the wolves to look after the sheep?
    CCCS funded by banks
  • JokerDurden
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    Charco as ever the voice of reason.

    Maybe was a bit hasty as 6 year point is in march so will hang off then until credit reports are all sorted.

    Many thanks
    IVA Completed - 2010
    "Wine for my men, we ride at dawn"
    96
  • fatboy88
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    Sorry to ask, so even if you finish early in your IVA say year 4, it wont disappear till after a 6 year period?
  • JokerDurden
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    I'm not sure on that one, I've completed after 5 years. After a bit of tidying up a the end i.e. repaying payment holidays I got my completion certificate through 4 months after my final payment.

    So now i've only got 4 months until my 6 year point. Which will remove my court order and defaults from my credit history
    IVA Completed - 2010
    "Wine for my men, we ride at dawn"
    96
  • Charco_2
    Charco_2 Posts: 1,677 Forumite
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    Yes Fatboy, your credit file is a six year rolling history of your finances - currently dating all the way back to December 2004 (unless my calculations are wrong)

    Next month, anything you did in Dec '04 will vanish off the bottom of your Credit file and January 2005 will be the last month on your credit file.

    That's not to say that it would be impossible to build your rating up until the 6 years are over but just be aware that it's in the background regardless!
    Would you ask the wolves to look after the sheep?
    CCCS funded by banks
  • fatboy88
    fatboy88 Posts: 478 Forumite
    First Post First Anniversary Combo Breaker
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    So if you have something that is unsatisfied that stays on regardless or will that drop off as well. This is for someone else
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