That's it! I'm off to Payplan...

loubie_lou

Hey folks....

As the title says i have my Payplan interview on Saturday. I can't cope anymore. I've had three lightbulb moments (latest one feb this year) and i can't survive on what i'm paying out now.

Nearly 50% of my monthly income is going on my debts and they are just not going down. I'm living off credit to pay for things. I've made some progress though, my credit cards have been cut up (one paid off) and i've reclaimed my bank charges back.

I've been reading up what my options are and i'm kind of swaying towards and IVA. I know it's very restrictive but my credit rating is already rubbish and i like the legal security that an IVA will provide. I won't be able to deal with creditors hassling me .

I only rent at the moment and i'm up to date with my payments. I'd like some opinions, is anyone else on an IVA? Is it as restricitve as i've read (e.g. after living costs every single penny goes to creditors etc).?

I'm also hoping to go back to uni in a year or too so i want to be in a more stable financial situation. Can you take on student loans while on a IVA because i've ready no credit is allowed!

Any comments, tellings off will be appreciated!

loubie_lou

Hello?! You guys have any advice for moi?

Joek_2

Hi loubie_lou...

The choice between an IVA or DMP can be a fairly tough one.

The main thing is have you got enough cash to qualify for the IVA - I think it's about £350-ish.

If you have, and feel you can meet those payments all the time, then go for it.

I veered away from this, and chose a DMP (I have a much bigger debt than you, I have to say:(). Mainly because I wanted to feel that I was paying back as much as I could, and in some bizarre naiveity I decided I wanted CCCS to deal with everything for me, from a - z.

Yup, it's going to take a long time to clear, but CCCS have been fantastic to me, and helped me every step of the way. I have got my spending spot on for the last few months, and luckily very few really nasty letters (and because my main creditors have got my old phone number I'm not getting DCAs on the line!). Also, if things go pear-shaped, I have got a bit flexibilty to change payments etc, whereas i believe when you're on an IVA, it can be much more difficult to do this.

I'm sure there'll be many more clever people than I who can offer more intelligent advice!

Good luck in whatever you choose.

sammy115

Sorry if you have posted an SOA previously.. Its hard to say what your best options are without knowing your income and outgoings and how much spare income you have to throw at your debts.

Are you snowballing your debts (and are you still spending on your CC's) you need to stop doing that if you are cos I think that might be where you are going wrong.

System

Hi Lubey, Just be assured that they will treat you gently and with the utmost respect no matter how embarrassed you may feel. Good luck and let us know what they say. Lenny

loubie_lou

Thanks, they are so nice at payplan, they've rang me up three times in the past two days, just making sure i'm prepared for the meeting on Saturday!!

Tirian

Legally you have to be able to pay at least £250 per month in order to qualify for an IVA and at least £15,000 in debts. So you would qualify on the second count - but not necessarily on the first. Don't forget that an IVA is an insolvency and will remain on your credit record as such for 6 years afterwards and even if you complete it, your creditors may have a charge put against your house for the amount written off if you are a homeowner.

southernscouser

Hey Loubie. How did it go?

Have you considered bankruptcy? :think:

Tr@cker

They tried to 'sell' me an IVA over the phone the other day, quite unsolicititedly, they are aggressively marketing these plans now and with debt reaching epidemic proportions there's big money in it for IP's. If as they say they can get a big debt reduction even after fees it can worth it but i believe creditors are now getting tougher in their acceptance as for example Northern Rock. Its a better option than bankruptcy as for one thing your name doesn't go in the local press for everyone to gawp at and point the finger at you. Also you can keep your current account.
I too would have no qualms at having my credit rating reduced to zero-who needs it when you might just end up in the same !!!!!! further down the line ?
Im OK at the mo but its borderline.

Nigel2412

I too would have no qualms at having my credit rating reduced to zero-who needs it when you might just end up in the same !!!!!! further down the line ?

That's why I'm where i am today in debit, but dealing with it.

Had my interview with Payplan today feeling better.

Good luck