Everyday Loans

ollie48

Hi,

I wonder if someone can give me some advice.

In 2007 I stupidly took out a secured load of £30,000 with everyday loans.

I'm not sure how I got into that much debt and I regrettably wished I sought advice about my finances at the time. When I took it out the idea was to re-negotiate the amount and have lower payments. I pay £430 every month on top of my mortgage of £606, and then on top of that all the usual bills oh and with an an IVA of £170.00.

Every month I just break even or I'm skint for about a week and a half.

About a month ago I received a telephone call from a company called Future Money Financial' who claimed that I would be better off going bankrupt and that IVA's don't pay your creditors until around the 3rd year. This company FMF would be charging £800 for their services and I would also have to pay the £700 bankrupt fee.

Last week, so confused I spoke to the national debt line and they told me that I couldn't carry on paying what I'm paying and should look for somewhere else cheaper to live.

I'm really confused. I suffered from depression and do not want to go back down that road again.

I rang Everyday loans to see if I could lower the payments. To date I have paid over £20,000 and according to their contract that I signed, the interest is over £70,000.

Included in the loan is £924.57 documentation fee
£3,035.03 Higher lending charge.

Is there anything that I can do to lower the payments or get out of it?

aimingforadebtfreelife

When you got the secured loan what did the £30k go on? Ie. is there any debts left over as confused to why there is an IVA of £170 month after this money got released? By knowing what debts in total you have and the amounts we can give you some better guidance.

Tixy

It would seem your options would be to sell the property or to consider bankruptcy. Aside from that the secured loan will still be owed. Or try to cut back in other areas so you can afford the repayments.

Steer well clear of FMF or any firm who is going to charge you money to hep you go bankrupt stick with the charities.
What did national debtline suggest about bankruptcy?

How long have you been in your IVA? How does what you actually have coming in and going out each month compare to your IVA budget? presumably your IVA income & expenditure included you paying the morgtgae and secured loan so what has changed since the IVA? or what area of your costs do you spend more than budgeted?

ollie48

aimingforadebtfreelife wrote: »

When you got the secured loan what did the £30k go on? Ie. is there any debts left over as confused to why there is an IVA of £170 month after this money got released? By knowing what debts in total you have and the amounts we can give you some better guidance.

Thank you for replying. The 30K went on paying off a car loan, credit cards and an unsecured loan. I can't remember what else. Looking back at their paper work I think their charges helped to top up the total.

The IVA covers around £17,000 debt which includes a loan, credit cards x 2. I since got the reduced by claiming back PPI, but I'm not sure at this moment if they have taken it off.

I went into an IVA 2 years ago. Nothing much has changed only the cost of living and driving to work. Also, child tax credit has been cut a lot.

ollie48

Thank you.

Tixy wrote: »

It would seem your options would be to sell the property or to consider bankruptcy. Aside from that the secured loan will still be owed. Or try to cut back in other areas so you can afford the repayments.
If I go bankrupt would I still have to pay the secured loan?

Steer well clear of FMF or any firm who is going to charge you money to hep you go bankrupt stick with the charities.
What did national debtline suggest about bankruptcy? The national debtline suggested that I hand over my home and rent somewhere cheaper. I'm not in arrears with my mortgage and I found out that I may have around 5K equity.

How long have you been in your IVA? How does what you actually have coming in and going out each month compare to your IVA budget? presumably your IVA income & expenditure included you paying the morgtgae and secured loan so what has changed since the IVA? or what area of your costs do you spend more than budgeted?

The cost of living. My car I've had to spend more on and its still not right. Will have to sell to try and get another. I've been in the IVA for almost 2years with 4yrs to go. I've asked for a reduced payments, which I can have but, it would mean paying into it for approx another year.

Tixy

Have you had annual reviews with your IVA company? have they not then re-looked at your budget and IVA payment?
You say you either break even or are skint for a week and a half. On an IVA you would expect to breakeven, but if you are 1.5weeks short each month then thats almost a third short of what you should have compared to your budget, which sounds like something is going very wrong somewhere in what you are spending.

You have claimed back PPI on the secured everyday loan? So you need to ask them what the new balance is and what the APR is and work out whether the balance will reduce each month now or contine to climb and assuming it is decreasing work out how long it will take you to clear the secured loan.

skintandscared_2

How come the loan isn't included in the IVA? Do they not allow secured loans to be included?

ollie48

Tixy wrote: »

Have you had annual reviews with your IVA company? have they not then re-looked at your budget and IVA payment?
You say you either break even or are skint for a week and a half. On an IVA you would expect to breakeven, but if you are 1.5weeks short each month then thats almost a third short of what you should have compared to your budget, which sounds like something is going very wrong somewhere in what you are spending.

You have claimed back PPI on the secured everyday loan? So you need to ask them what the new balance is and what the APR is and work out whether the balance will reduce each month now or contine to climb and assuming it is decreasing work out how long it will take you to clear the secured loan.

Thanks for your reply. I've had annual review, but maybe I didn't highlight enough how things had gone up. Added to that my child tax credit has gone down a lot too.

I didn't claim back PPI on the secured loan, it was another load that is included in the IVA.

I've rang everyday loans to ask for a balance and I should get it within the next few days. They did originally ask me to take out PPI but I refused.

The APR on the loan is 17% variable. I asked them if will go up and they said no.

ollie48

Thanks for your reply. I've had annual review, but maybe I didn't highlight enough how things had gone up. Added to that my child tax credit has gone down a lot too.

I didn't claim back PPI on the secured loan, it was another loan that is included in the IVA. They did originally ask me to take out PPI but I refused.

I've rang everyday loans to ask for a balance and I should get it within the next few days.

The APR on the loan is 17% variable. I asked them if will go up and they said no.

ollie48

skintandscared wrote: »

How come the loan isn't included in the IVA? Do they not allow secured loans to be included?

Because they said at the time that secured loans could not be included.

RichGold

ollie48 wrote: »

The APR on the loan is 17% variable. I asked them if will go up and they said no.

You didn't believe that did you? Variable means exactly that, both up and down.