IVA - What to do?

worriedchick

Hi

I'm not sure about the whole IVA thing. I've heard that some people are struggling and run out of money throughout the month trying to pay their IVA.

My husband and I have £25k of secured debt and a mortgage plus about £50k of unsecured debt. I work on a low basic but get commission which can sometimes be very good. I'm struggling with paying the repayments and after a bad month have run up a massive overdraft to pay bills. Another couple of bad months and I wont be able to make the payments. I'm not sleeping and depressed as I can't see ever getting out of debt, anytime we need something even kids shoes are bought using cards or store accounts as all money is maintaining debt. I just don't know how they will work out what we have to pay with my commission basis.

What would happen with my mortgage etc? Do they take your belongings etc

Any advice would be good

Thanks

judojub

Hi worriedchick.
Have you spoken to any of the following?

• Consumer Credit Counselling Service: Full debt help service. Link: CCCS Tel: 0800 138 1111 Opening times: M-F 8am-8pm
• National Debtline: Full debt help service. Link: National Debtline Tel: 0808 808 4000 Opening times: M-F 9am-9pm, Sa 9.30am-1pm
• Citizens Advice Bureau: Full debt and consumer advice service. Link: Citizens Advice or visit your local CAB centre (find nearest) Opening times: different for each bureau

Give one or all of them a ring and explain your circumstances. They will give you some good advice to set you on your way.
An IVA, once all expenditure is taken into account should allow you to live a reasonable lifestyle although, yes, it is hard to begin with and involves a lot of retraining into how you manage a budget. Pay a visit to https://www.iva.com. Speak to two or three of the companies on there (also reviews for you to look at). They will give you free and impartial advice and will be able to advise you with regards to your debt and your income/comission etc and whether an IVA would be a good solution for you.
An IVA normally last for 5/6 years.
You are not allowed to include secured debts in an IVA. With regards to your mortgage that would carry on as normal. If you are on a fixed rate you may well find that you will have to go onto SVR when it finishes as not many companies will allow you to have another fixed rate once in an IVA. Your house would be safe but you would be expected to try and remortgage for any equity in year 5. If this couldn't be done (which would most likely being in an IVA) then your term could be extended by another 12 months.
There is so much to take in.
Well done for taking the first step as that is often the hardest. Just remember that there will be a solution for you but it's best to get as much info as you can so that you know whichever road you take will be the right one for you.
Keep posting for help and support, there is always somebody here who will help!
Hope that helps a little

worriedchick

Thanks Judojub

I just done the debt remedy thing through CCCS and it suggested a DMP but that takes my commission into account, I may earn less then the figure I entered but normally earn about that. It would take 12 years on a DMP to clear my debt. That doesn't allow for increases in mortgage rate etc as I am on an SVR. May call them on Tuesday.

Just feel like I am treading water and my head keeps going below the water. I often wake in the night and I am laying there for 4 hours awake and praying for that lottery win, I then have to deal with children and work full time with no sleep. My overdraft is at it's limit paying the bills this month as had a bad pay, had to use £1600 in overdraft to cover my bills this month, don't know what to do if I don't have enough next month as CC's are maxed. Feel like running away1

judojub

worriedchick wrote: »

Thanks Judojub

I just done the debt remedy thing through CCCS and it suggested a DMP but that takes my commission into account, I may earn less then the figure I entered but normally earn about that. It would take 12 years on a DMP to clear my debt. That doesn't allow for increases in mortgage rate etc as I am on an SVR. May call them on Tuesday.

Just feel like I am treading water and my head keeps going below the water. I often wake in the night and I am laying there for 4 hours awake and praying for that lottery win, I then have to deal with children and work full time with no sleep. My overdraft is at it's limit paying the bills this month as had a bad pay, had to use £1600 in overdraft to cover my bills this month, don't know what to do if I don't have enough next month as CC's are maxed. Feel like running away1

Hi worriedchick
I know exactly how you feel as I had the same emotions only a couple of months back when I started on my IVA journey. The simple fact is, you can't carry on the way you are. We've all been there. I was withdrawing money from my OD and then nipping into the bank to pay my CC:(. Food/petrol etc was all purchased on CCs and it just consumed us. I became miserable, diagnosed with anxiety, I became grumpy mummy and me and OH did nothing but argue! There comes that time when you know enough is enough.

With the level of debt you say you have then a DMP of 12 years is a long time, if we had done DMP it would have taken 14 years:eek:
Also with a DMP you must bear in mind that creditors are not obliged to stop charging interest or fees, if that were the case then you could be on that DMP for a hell of a lot longer.:(
I can't help you with the commission side of your wage, as I am not too clued up on it. Please don't delay in ringing them, they will go through your options with you and the minute you make a definite decision on what to do you will straight away begin to feel some relief!
Don't wait til Tuesday. Do it tomorrow!;) x

worriedchick

Thank you so much for your support, realising I am not alone helps a lot. I've been laying here on a night wondering how I'm going to pay anything. With the fees and interest the debts are not coming down. My Halifax card payment is £125 and interest is about £118. I'm thinking more towards an IVA as I want to know it will all stop after a time limit.

My debt is £56000

My own fault though. I actually feel better that I have come on here and spoke about it, I feel ashamed about it too.

Poor you going through these feelings too, I wouldn't wish it on anyone. How are you managing now you are on the IVA? I can budget well, have been juggling for a couple of years and budget everything to the penny so not too worried about that. It sounds silly but I worry that I wont be left with anything for birthdays etc

judojub

worriedchick wrote: »

Thank you so much for your support, realising I am not alone helps a lot. I've been laying here on a night wondering how I'm going to pay anything. With the fees and interest the debts are not coming down. My Halifax card payment is £125 and interest is about £118. I'm thinking more towards an IVA as I want to know it will all stop after a time limit.

My debt is £56000

My own fault though. I actually feel better that I have come on here and spoke about it, I feel ashamed about it too.

Poor you going through these feelings too, I wouldn't wish it on anyone. How are you managing now you are on the IVA? I can budget well, have been juggling for a couple of years and budget everything to the penny so not too worried about that. It sounds silly but I worry that I wont be left with anything for birthdays etc

You're not alone and there are plenty of people on here that have 'been there, done that' and you'll get the help and support you need. (No idea where they all are tonight though:rotfl:)

I only applied for my IVA back in Feb so I really am still quite a newbie and still learning myself. It was only ever IVA or BR for us. With debts of £40k and no equity in our home, some might question why we didn't choose BR, but to be honest, we wanted BR to be our absolute last resort, just for us personally, we felt that if we had some spare cash we should give the IVA a go first (but that's just how we felt).
We currently are paying £215pm into our IVA, we have our 'allowances' for all our basic living etc and anything we can manage to save from that is a bonus, even if it's only a tiny amount.
Money will be tight and you learn to become more frugal.
As soon as I started the process I felt so relieved and when our IVA was accepted it just felt like a ten tonne weight had been lifted and I could breathe again!
As I said, it's still early days for me and I don't know how it will work out for me in the long run but I will give it my best shot.!

worriedchick

I have to work a 12 hour shift today so that's why I will have to call them tomorrow. I can't see any other option as our minimum payments are just clearing the interest in cc's and can't get out of the overdrafts as no spare cash. Anything we need is then bought from catalogues or on storecards. We have been managing to budget for food shopping fine but won't be able to next month if I have another bad month or if hubby goes on a 4 day week again (just come off one)

judojub

Well, certainly give them a ring tomorrow then. Also if an IVA is an option then take a look at iva.co.uk
Plenty more help and support on there plus a few of the posters are actually IPs and they would be able to help you too.
Let us know how you get on! x

debtfree2016

Hello Worriedchick..
Welcome to the sight, plenty of advice in this forum... i remember when Judo was applying for the IVA back in feb and i have recently applied but the knowledge you gain from this forum will help going forward. My debt is around £70k and looking to be paying £900 per month which is half of what i was paying each month.. Please just make sure you cover all of your expenditure and make sure you have enough to live on. An IVA is for 5/6 years so you need to make sure that what you agree to now, you will be happy with in years to come.
Best of luck

Sally42

Hi WorriedChick ~ I've just seen your post and thought I'd jot down a few thoughts. I guess everyones situation is different, and so what works for one person might not be as good for another, but speaking from personal experience, getting an IVA was the best thing my hubby & I ever did. We were around £17 000 in debt, paying back circa £900 a month and just not managing to do it, and so getting in deeper & deeper with interest, charges, etc. I did the whole ignore the phone/don't open the mail thing, juggled paying one company one month, another the next and stuck my head in the sand. As a result, I became depressed, our family quality of life was zero and my mind was on money (or lack of it) day & night. Finally, my husband took the initaitive & contacted a debt management company, & we eventually were accepted for an IVA with no problems. Our repayments went from £900 a month to £320, which meant I could buy shoes for the kids, afford a takeaway a couple of times a month and not gain any more grey hairs every time the phone rang. When I DID get 'the calls', I was told to refer them straight on to my IVA provider, who dealt with each and evey problem as it arose. The relief was fantastic! We now have one year left to pay on the IVA, and are actually planning our first half decent family holiday for August of 2012!
An IVA does make you rethink much about the way you spend, but it is a healthy process. We've spent five years using Freecycle to furnish our house when anything needed replacing, saving for anything we need, or turfing out stuff to sell or exchange for this & that. It can be done!

worriedchick

Thanks everyone. Just looking at who to contact now. Has anyone heard of cleardebt? Found them on iva.com?