IVA - good or bad?! confused...

pennylane_3

Hello

I'm a bit confused about IVA's - are they generally considered a good option or a bad one? and how do they work? are there any trusted companies that i should approach if i choose to go down that route?
what are your experiences / opinions?
i've tried to search the site and forum but didnt have much luck - i must be doing something wrong!!

anyway... advice?!

debtfree_wanabee

Hi there I'd also be interested in this. Also if you are a homeowner do they force you to sell your house as a means to repay your debts or is it ignored?

scootw1

Make sure you get all the advice you can. I wasn't given the right advice and went into an IVA for six months when my best option was bankruptcy as I have no assets, job is safe etc. Ended up paying a lot and more than I could really afford.

pennylane_3

ah ok - i dont have any assets either and my job contract is only until june, but thats the way it tends to go in my line of work. i will get another job, but i'll never have a long term contract - where is the best place to get advice?

scootw1

Payplan, CCCS or the Citizens Advice would be good starters

CLAPTON

an IVA is an individual voluntary agreement.. the bit to look at is the word 'individual', so whether or not its appropriate for you depends upon your particular circumstances.

so before advice can be given we need to know your financial circumstances

so if you'ld like to post an SOA then people will be able to advise.
see


http://forums.moneysavingexpert.com/showthread.html?t=107280

pennylane_3

ok here goes... ah.....this will be quite rough because to be honest, this has been going on so long i have no idea what i owe to who anymore:


Monthly Incomings:

My salary - £1,200

Total - £1,200

Monthly Outgoings:

rent including council tax and phone - £530
gas and elec - £18
tv - free
Food - £50
travel £160
mobile £10
going out and doing things at weekends/evenings £120
clothes £20
doctor £13

= £921

I am supposed to be paying payplan £50 a month for old debts which are over £15,000 - but i dont think i have an IVA - just a payment plan.
All i know is that the interest is frozen on them and the debts are really old - store cards and an old loan and an overdraft.

I also pay Howard Cohen solicitors £20 per month for another debt.

I have to pay an old gas debt for about £200 - i have just been given the debt peoples contact information for that one and should be calling them this week to set something up, but have nothing to give them.

I owe my boyfriend £470 - which i really need to pay back. I also owe my parents some but i think this can wait a little longer.


My overdraft limit is £2000 and is constantly maxed out, but it is interest free until july as i am a post graduate.

currently... i have maxed out the overdraft and have such terrible credit i cant get any loans or anything - which i think is a good thing!
I am not paid until the 28th... and i have travel expenses to go out this week as well as all the debts that im not currently paying.

Im searching for a weekend / evening job but i'm not getting much luck.

i'm wondering how to get out of this because every month it turns out this way, despite my best intentions.
although it might not seem it, i hardly treat myself and the budget ive included for 'doing things at weekends' is something that im trying to fit in, because im starting to feel like a machine....

ok.... any advice?

CLAPTON

first step is to work out where your money is actually spent.

start a spending diary and write down everything (absolutely everything )you spend.

there seem several things missing in your budget... 50 for food seems very low, any takeways, holidays, hobbies, magazines/newspapers, work lunches/coffees

can you divide rent/council tax/phone into the individual items

spending 120 per month on socialising is excessive in your debt situation

can you be clearer about the debts..like debt amount, monthly amount actually paid.

pennylane_3

hi - sorry if i wasnt being clear..

£50 for food is right, - its usually £10 a week and maybe a couple of extra quid here and there for the rare cup of tea or coffee when out. I share my food expenses with my partner - £10 each max. we dont really buy much else other than veg and the essentials.

rent / council tax and phone are lumped together because im in a shared house and that is what we all pay per month into a joint account.

i havent been on a holiday in sooo long.. i lumped my hobbies in with the weekend/evening spending - this includes ice skating, seeing the odd film, buying books, seeing a band etc. i know the social stuff sounds a lot but to be honest im never actually going out to do these things because i dont have the money in practice - it all tends to go on charges etc.

as for the debts... ive been as clear as i can be but to be honest im just really confused.
im supposed to pay £50 a month to payplan but am not managing to pay it.
im paying the £20 to howard cohen
the £200 gas debt needs addressing asap
i havent begun paying my partner back the £490.

im sorry im not being that clear, but the truth is that im living in a really sticky situation and always seem to be paying for things by cheque and paying for it the next month... and to be honest im just quite confused.

CLAPTON

what sort of charges?

basically its essential you know where everything is going...your basic budget says you have a 'surplus' of '279' to pay debts but your debtsa only seem to be 50 +20