IVA tips

silvdo

Hi,

I've just gone into an IVA and thought it might be useful to comment on some things that i could have done to make it easier. I should add that i was quite fortunate as i relised that i would need to do somthing before i got to a crisis point and so had time to prepare myself but even so in hindsight i could have done the following.

1) Most of our debt was in my name rather than my wifes so i got an IVA. What i could have done was to get as much of the debt in to my name as possible. Before starting the process. Though i should add that this could be bordering on illiagal as to take out credit without the ability to repay could be fraud. But i could have argued that the interst rate in my account was less that that of my wifes overdraft. It would have meant just one plan and less overall repayments (but also has questionable ethics).
2) Sorted out Joint accounts. We had a joint account and it is just messy. Even theough the IVA is all sorted because my wife is not included int he IVA she is still liable and we now have to negotiate with the Co-op. So we should either have removed her from the account or moved the debt to a different account.
3) In the run up to realising i needed to sort my finances out i kept missing all sorts of payments to all sorts of things, so i should have prioratised my payments to ensure that any debt that could not be included or any bill that i was behind with was brought up to date. Even at the expense of loans that i had been paying well for a long time. I could have stoped paying loans and credit cards as soon as i knew i was going in to an IVA and then used the money to pay catch up on other debts. (Maybe even used the money to pay off more of my partners debt or tuck away for an emergency) Instead i now have my IVA but still face more of a struggle whilst i work to catch up on missing bills.
4)open a new account as soon as possible. I knew i would have to do this but it took so long to get sorted that it could have delayed my IVA so don't delay open a new basic account as soon as posisble.
5) Take time to consider your options but as soon as you know what your doing move as quickly as you can. It is worth putting up with a couple of extra stressful phonecall filled days to make sure you know what is happening and to make sure you are taking the right action but then there is no point dillying about just get on with it and become debt free.
6) Try living on the budget that you have calculated before you commit. That way if there are any areas you exceed you can adjust your commitments accordingly.

Also one thing that i did do that i believe is more important than any others is to use a repretable company. I used Payplan and they were great, CCCS is another option and there are others on the board that im sure you can find.