Is IVA the best solution

Hunnybunny72

Hi
I have just contact this site to consider an IVA.. however i have read up on it and i am not really sure if this is the best solution, I just need some help really before i jump into it with both feet

My curren account, savings account and mortgage are all with the same bank. I am just worried that if i close my current account i will not be able to change mortgages when its due in August 2014 and my current bank will then put the rate up causing me to struggle with payments.

I have never been in debt before but due to a failed marriage i was left with this debt that is controlling my life and i have no spare money and i am now finding it hard to cope from month to month

My other worry is i will not be able to continue to pay all my bills via direct debit - gas, electrice, water, tv, council tax i would guess will be ok, but it is my car insurance, home insurance.. well all the bills you normally shop around for the best deals...

I'm just really worried.. can anyone help me and answer some of my doubts

Thank you x Hunnybunny72

Anondebtadvisor

If you enter an IVA it is unlikey you will be able to remortgage but some lenders will agree to put you on another fixed rate - but no guarantees so you are right to be concerned about this.

Paying your bills by direct debit should not be a problem.

Do you have equity in your property?

Tixy

Hi Hunnybunny and welcome to MSE

I would recommend contacting one of the debt advice charities for some initial advice. They'll help you consider all your options (including an IVA but also alternatives) and see what might work in your situation.
IMPORTANT READ FIRST - Where to seek IMPARTIAL FREE advice


It also might be worth you considering completing a statement of affairs and posting up on the Debt free wannabe board - as people there may be able to make suggestions on your current situation and possible changes you could make to see if you could manage your existing debts -
Debt-Free Wannabe

Depth_Charge

Hunnybunny72 wrote: »

Hi
I have just contact this site to consider an IVA.. however i have read up on it and i am not really sure if this is the best solution, I just need some help really before i jump into it with both feet

My curren account, savings account and mortgage are all with the same bank. I am just worried that if i close my current account i will not be able to change mortgages when its due in August 2014 and my current bank will then put the rate up causing me to struggle with payments.

I have never been in debt before but due to a failed marriage i was left with this debt that is controlling my life and i have no spare money and i am now finding it hard to cope from month to month

My other worry is i will not be able to continue to pay all my bills via direct debit - gas, electrice, water, tv, council tax i would guess will be ok, but it is my car insurance, home insurance.. well all the bills you normally shop around for the best deals...

I'm just really worried.. can anyone help me and answer some of my doubts

Thank you x Hunnybunny72

Hi Hunnybunny

I have posted this reply in the other section

It is imperative that any debt remedy / solution is affordable and sustainable so any mortgage changes / payments etc (inc any possible future increases) have to be taken into account.

Along with everything else make sure you absolutely fully understand the position with your home / property with regard to any debt solution you wish to consider.

Are their any potential PPI claims on any of your debts?

People in debt solutions usually find a bank to set up direct debits and standing orders, however there does seem to be issues with some banks where people enter formal debt solutions such as an IVA & bankruptcy which is a little ridiculous in my opinion.

The powers that be are supposed to be putting the pressure (if that is the right phrase) on banks etc to make suitable banking available for all including those in formal debt remedy solutions

Best to do your homework and get full advice from one of the genuine charities such as CAB, National Debtline & Stepchange - have all the information on hand if you contact any of them.

Have a look through the charity links below, they may give you some guidence

http://mymoney.nedcab.org.uk/moneyadvice/remedy_6.asp

http://mymoney.nedcab.org.uk/moneyadvice/index.asp

https://www.mymoneysteps.org/

There is information on the I/S website regarding IP firms just to balance things a little and at the end of the day it is your choice and decisions.

Entering an IVA or any other debt solution is a big decision so you need to be absolutely sure.

If you put up more details this should allow people to help and guide you further.

Best wishes

FiatFan_2

Welcome along, dependent on what mortgage rate you fixed on, is there not a chance it'll go down rather than up? If your on interest only then you will be put onto a repayment mortgage when the iva hits your credit file. Your mortgage provider should be able to advise what payments would be at there current rates.

I expect provided your not already in arrears with utilities then Direct Debits aren't a problem, we've not had an issue so far with ours.

Car Insurance will be trying to get the best deal with finance, we renewed ours yesterday but the 10 best quotes were all backed by Hastings who rejected finance, LV however accepted us and still saved £37 over the renewal quote. House insurance is due in a couple of weeks so think we'll be moving it to LV too which saves a fair bit again.

As mentioned above, seek professional advice from one of the recognised debt charities and make sure you ask any questions you need to be sure your making an informed choice. They don't bite no matter how many times you ring