IVA - two years done - Maybe the best move I ever made!

ashton46

Morning folks,

November 2011 - the month I started my IVA. And, so far, it is the best thing I have ever done.

Previous to this I was living in a home I purchased in March 2007 which, with the wonderful luxury of hindsight, was perhaps not the best time to buy. But due to a rather expensive divorce, I had little choice so I purchased this house with considerable unsecured borrowing and a 100% mortgage as, in theory, a first time buyer.

During the 4 years in the house, the value plummeted by 30%, cost of living went through the roof and work was tough. Although I was one of the lucky ones that didn't actually lose their jobs, there were pay cuts & short time due to lack of work. I had gone interest only on my mortgage to try and get through the tough times but I still couldn't manage. I was short paying on an Interest Only mortgage which already had 30% negative equity.

And things snowballed from there. Bills missed so I could put that money back into the mortgage to stop the letters. But then my bills would go up to compensate for the missed payment.

Phone calls, debt collectors, threatening letters every day. Relationship on the rocks, being prescribed anti-depressants, my work was suffering, I couldn't sleep, I never left the house.

Stepchange changed all that. They were wonderful. They guided me through the IVA process a step and a time, giving me advise on various different options and avenues.

I ended up taking voluntary repossession on the house and renting.

I now rent a house worth almost 3 times the value of my mortgaged house, for two thirds of the monthly cost. It's location is in the village I always wanted to live in and planned to eventually live in before the financial crash (and other factors) changed everything.

Work is back to normal and busier than ever. My performance at work in the past two years has earned me the job I always wanted to be doing, no more anti-depressants, I'm now married with children, no more phone calls, no more letters. During the first year I couldn't pass a credit check for a mobile phone contract, or monthly car insurance - but now I do. Things are slowly starting to look up on that front as well.

I have a long way to go, and the financial squeeze is tightening as I progress through the IVA, but it's taught me a valuable lesson about the value of money and what is important.

I now don't get my enjoyment and kicks from a big night out, I go running (it's free and so exhilarating!) and my treat is a £5 bottle of red on a Saturday night with my wife.

I'm sure something will bite me on the bum in the future because of my decision to enter into an IVA, but for now, compared with 2 years ago, the future is looking just fine!

If anyone is reading this forum looking for advise on IVA's, ring Stepchange. They might just change your life as well!

UpToMyNeckInIt

Hi ashton,

Great story - nice to hear something positive about IVA's for a change.

Sadly, my experience of Stepchange was somewhat more depressing (they advised me to do a 10-20 Year DMP). My account is here:

https://forums.moneysavingexpert.com/discussion/4778005

So I would advise that yes, anyone with debt problems should approach CAB, Stepchange, NDL etc. But do your research first. At least get some idea of what solution might work for you, before you pick up the phone.

Remember: The advice these organisations offer is just that - advice.

With the exception of CAB, what they suggest may be skewed by a desire at some level within the organisation, to protect the creditors that fund them.

Don’t be afraid then, to approach a private firm if you think an IVA is right for you, but not what the charities have suggested.

FiatFan_2

Great story ashton46, none to dissimilar to my own. Surprising how with the right guidance an iva can actually improve life much more than just the pressure relief of amassed debt.

Nargleblast

Ashton - good to hear things are working out for you. I am four and a half years into my IVA, but am extending for another year as I cannot remortgage, so finish date is now August 2015 - only 22 payments to go and counting......it can be tough, sticking to the budget, but it's good training for when the IVA is finished. Learning to live within your means is a rewarding experience, you learn to spot bargains and avoid waste. And the feeling that you can enjoy Christmas knowing there will be no credit card bills in January is such a relief.

tibawo

Well done you, I am about to make my last IVA payment... And I'm getting stressed thinking about having to redo a budget after five years of juggling at times to make ends meet.