Payplan

shinner

Why not post a SOA on debt free wanabee forum and ask others for advice loads of knowledgeable people on there.

aliscrapper

shinner wrote: »

I would tell him to do a soa that shows him paying all bills with a small contribution from you towards as additional income.
I have been on reduced payment since march with virgin and they have just settled for 22% with a default on my account and in process of trying to sort out others. I would make token payments my money steps is a good site.
With what you can save through making token payments you can save toward f&f

Oooh - didn't realise the money steps was another website - thanks!!

So did Virgin reduce your debt and you agree how much you are going to pay off each month - so kind of like an IVA but without the legal bit??? Does dealing with your debts this way mean you are paying back over a longer period??

Sorry to ask a daft question but what is "F&F"???

shinner

I got in touch with virgin they agreed to freeze interest and i paid a small amount of my minimum think i actually paid half i then got in touch asked if they would accept a f&f full and final settlement (did this last week) They agreed have to pay it before oct.
My money steps gives you all options. I self manage and seem to be doing ok. I dont pay interest but you have to speak to the companies.

shinner

before agreeing to settle it would of taken me around 7 years to clear.

aliscrapper

shinner wrote: »

I got in touch with virgin they agreed to freeze interest and i paid a small amount of my minimum think i actually paid half i then got in touch asked if they would accept a f&f full and final settlement (did this last week) They agreed have to pay it before oct.
My money steps gives you all options. I self manage and seem to be doing ok. I dont pay interest but you have to speak to the companies.

Is that a small amount of your minimum payment each month or a small amount of the debt?? And I'm assuming the F&F settlement and what you have paid back in your monthly payments is significantly less than what you owe??

Hubby going to check out my money steps when he gets home as he can input all the correct figurework. Thanks

shinner

yeah a lot lower. I think if wasnt for DFW board i would still be racking up more and more debt.

UpToMyNeckInIt

Don't rule out a DMP, especially if it is determined that your Husbands disposable income (what would be his IVA payment), is high, and you can pay of the debt within say 6-7 Years. My only issue with DMP's is that the informal nature of the agreement means that there is no guarantee that your husbands creditors will freeze interest, and there is nothing to stop his creditors pursuing him for the full debt plus interest etc. ant any time.

Also, be aware that the charity organisations are creditor-funded. They may therefore (as they did with me), suggest a DMP as the best way forward. I disagreed that a 15-Year DMP was the way to go!!! Best for the creditors? yes - a 100% return. Best for me? No.

Seems to be no such thing as impartiality in this game: The IVA firms (especially the unscrupulous ones) will flog you an IVA at the drop of a hat. Also, I cynically believe that the Charities are looking out for their sponsors when suggesting DMPs in some cases.

Whilst the IVA will be in your Husbands name, in calculating affordability, you will have to declare your income to the IVA company, as they will quite rightly expect you to make a pro-rata contribution to household bills etc. This will be a factor in determining his payments.

Yes, in most cases, a proportion of his debt is 'written off' after the IVA, but again, that is not a dead cert: All depends on how your financial circumstances change over the IVA term - if you/husband get job promotions etc. with significant income increases, your IVA payment goes up. BE AWARE: your husband owes 100% of his debt until the IVA is concluded after year 5 or 6. Any windfalls, PPI claims etc. will normally be put in the IVA pot.

Like you say: lots of thinking to do on your/your husband's part. Do not commit to the IVA until you are certain it is right for you.

aliscrapper

UpToMyNeckInIt wrote: »

Don't rule out a DMP, especially if it is determined that your Husbands disposable income (what would be his IVA payment), is high, and you can pay of the debt within say 6-7 Years.

We've had various IVA companies look at Husband's income and they have all suggested that his disposable income for this purpose would be £175-£200 with a £26,000 debt

My only issue with DMP's is that the informal nature of the agreement means that there is no guarantee that your husbands creditors will freeze interest, and there is nothing to stop his creditors pursuing him for the full debt plus interest etc. ant any time.

This is probably hubby and I's main concern - both of us honestly feel that we couldn't sleep at night worrying if the creditors at any given point could increase the interest or pursue the full amount. I'm struggling really bad and have been hospitalised recently and are unable to work due to depression and hubby is also on ante-depressants due to his work making him miserable; so kind of think some peace of mind against uncertainty with a DMP may factor big in the final decision we make..

Also, be aware that the charity organisations are creditor-funded. They may therefore (as they did with me), suggest a DMP as the best way forward. I disagreed that a 15-Year DMP was the way to go!!! Best for the creditors? yes - a 100% return. Best for me? No.

Yes it really is scarey when you look at the sponsors for some of the IVA organisations - especially as sometimes it is in tiny print or on a small section of the website.

Hubby approached Step Change and they basically said his only option was a DMP over a period of 17 years and we came to the same decision as you - not for us.


Seems to be no such thing as impartiality in this game: The IVA firms (especially the unscrupulous ones) will flog you an IVA at the drop of a hat. Also, I cynically believe that the Charities are looking out for their sponsors when suggesting DMPs in some cases.

Whilst the IVA will be in your Husbands name, in calculating affordability, you will have to declare your income to the IVA company, as they will quite rightly expect you to make a pro-rata contribution to household bills etc. This will be a factor in determining his payments.

I'm in receipt of Disability Living Allowance as there are lots of things I'm unable to do - a lot of the IVA's have said that this benefit will not be taken into consideration as the purpose of this benefit is to pay for my care. Not seen this anywhere in writing tho???

Yes, in most cases, a proportion of his debt is 'written off' after the IVA, but again, that is not a dead cert: All depends on how your financial circumstances change over the IVA term - if you/husband get job promotions etc. with significant income increases, your IVA payment goes up. BE AWARE: your husband owes 100% of his debt until the IVA is concluded after year 5 or 6. Any windfalls, PPI claims etc. will normally be put in the IVA pot.

Hubby has been trying to get out of his job ever since we met (2007) but due to both the financial climate and the fact that his skills are goverment based his job market is very small and there just aren't the jobs there. I can't honestly see my position changing any time soon but hope to one day in years' hold down a part-time job.

Like you say: lots of thinking to do on your/your husband's part. Do not commit to the IVA until you are certain it is right for you.

Thank you so much for giving us the benefit of your experience. I can't tell you how grateful both hubby and I are. Hubby is as we speak burried under a mountain of useful information that both you and the other people on the thread have kindly pointed us in the right direction.

shinner

You are welcome on the on the dla note i was told by one company wouldnt come into consideration but another company disagreed.
how many creditors ?
I was paying 450 per month before i said no i cant pay now pay 100. Rest i save i pay off car tax etc outright now rather than plastic and have had odd weekend away.

shinner

Goodluck with what you do xx