I wish the cats had eaten my credit cards years ago! The end of a six year IVA Diary.

Lincsdebt

I have six more payments to make to finish my IVA. Six years long it's been and it isn't wrong to say I've hated every moment.


My debts went out of control, my partner didn't work enough, I ended up using a card to pay the mortgage. OK I know I over-spent too but you always think there's a chink of light around the corner. When it doesn't come, that's when the problems mount up. I was no stranger to lying awake at night in a panic, using one card and then another. Getting a loan to pay the cards, getting a new card and not cutting up the old ones.


Ended up in an IVA, and paying over £1k a month to clear my debt. OK, you will say, you must've been earning it to have to pay that much.


The five years were up last September, but I was also caught by the equity clause. Many people disregard this, I had thought that, with some large PPI payments from before the IVA, I wouldn't have to pay much. But they got for me another year, even though my final IVA amount had long been paid.


That was six months ago. Six more payments and I'm free. My monthly salary will be mine, all mine. But I have become so conditioned by this situation, I don't think I will ever enjoy spending money again. This has destroyed my relationship with money and, at 61 years of age, I doubt it will ever be healed.


My diary is going to be the last six months of this "journey" (oh how I hate that word in this context). But in this case it's the right word to use. I feel I have a certain amount of experience to qualify my statement of "Don't do it, unless you have absolutely no alternative".


It has been the most difficult thing I've ever done. Yes, there's a relief when it starts but after a while, I resented every penny that went to the IVA. I've become an expert in managing my money, can usually tell you exactly how much I do or don't have in the bank and how long it is before I get paid. I've resented all the PPI they claimed back, and how little saw its way into my IVA account after the claims company had creamed it off. I've resented my friends' and colleagues' holidays, new cars, new furniture, when we can't have any of these. I've even resented having to make my own lunch!


I've beat myself up mentally for being so stupid, but it's a slippery slope when the debts start to climb. And don't the credit card companies just love to put your interest rates up when you get in that situation!


OK, let's try and end on a positive note here. When you can't afford to buy new clothes, you don't put weight on! Today that's as good as it gets, it will get better I tell myself, especially on days when the sun shines, the trains run on time and I can treat myself to a free Waitrose coffee!

aphill24

You sound like my sister, spend spend spend. Never save for a rainy day, "put it on the card" was what she said to me when I couldn't afford to to skiing with "The Gang"
Green eyed just like you, only she did have ppi but blew that as well, and the endowment. I'll give you credit for paying it back but people like yourself will always have their comeuppance. You ran out of money by consolidating loans and still using credit cards and your an example to other of what not to do when your in debt. Is this the point of your post or are you looking for pity?

Lincsdebt

Thank you for pointing out the obvious. I've learnt my lesson, this is my diary about how difficult it's been. I do not need sympathy, pity or a hand up. I'm dealing with it, I don't have to explain to you or anyone. My debts built up mainly because I have a husband who's freelance and his work dried up suddenly. Not being practical he struggled to do something different, he still does. So I had to deal with things like paying the mortgage and putting food on the table, while having to pay a large amount to travel on the train to work everyday.


You don't know the back story so I can see it's easy to judge. I feel sorry for your sister actually, I have one like that too. But I understand her far better now I've had to sort this out. And I have sorted it, my debts were over £100k and they are more than paid off.


However, I would advise anyone in the same situation not to go to a commercial debt management company, use a charity organisation who only charge fair fees. The debt management company I went to has made a lot of money out of me.


I hope you don't end up in the same situation, you really do never know what's around the corner.

pink68

Well done Lincsdebt. You have done really well to get this far.

It's no good people being critical of your situation, as you say no-one knows what lies around the corner. I was chatting to a colleague yesterday about the choices between saving money and paying off debt and he told me about a friend of his who worked three jobs to pay down all his debts and mortgage and then dropped dead before he had a chance to enjoy his debt free state. There is definitely an argument for balance in all of this.

Hopefully you can help others on here who are new to their situation to make some sound choices.

Personally I dont think i'll ever use a credit card again, I've nearly cleared debts I shouldnt have allowed us to run up over the last six years. But it is what it is, you deal with it and move on.

Focus on the future and perhaps think about how much you are currently paying to repay the debts and whether you could just divert that into some savings account in the short term whilst you adjust to debt free life.

Lincsdebt

Thank you pink68. I feel exactly the same, credit cards are the work of the Devil! Congratulations on nearly clearing your debts, it is a good feeling to know there is an end in sight isn't it?


I am going to set up a regular savings account once the IVA is done, it will be lovely to have that extra money, but I'm wiser now and will not fall into this trap again.

Brogden

Hi Lincsdebt

I read your opening post a few days ago and am now a bit shocked at the quality of the first reply so I just wanted to thank you for such a moving and thought provoking message.

I think some people just get a bit unpleasant when something is bothering them or something has hit a raw nerve :mad: Let's ignore that .

The worst is behind you and I wish you the very best in the final six months and beyond and look forward to hearing of your progress .

Kitten868

Wow! I don't think I've seen people be harsh on the diaries.
Anyway. So 6 more payments! That's fantastic. What are the things you wanted to reward yourself with? After this you are going to be debt free! Is there any mortgage left? Maybe initially keep putting that 1k into savings until you work out your new goals? I have no idea. I can't imagine how long hard and frustrating all this must have been! And to a fee charging nasty bum! Maybe some proper time off work and a holiday? Autumn sun?
I'm glad you're here to impart wisdom. Most families are 1 pay packet away from homelessness and you didn't back down. You went about it the way most of us would but came out fighting xxxx

Lincsdebt

Kitten, thank you for your comments. I don't think it will be a case of rewarding myself, just adjusting to actually having a life again! We do have mortgage still, that's under control and my extra cash will help us even more there.


One of the worst things I found was getting documents that referred to me as "the debtor". Made me feel pretty worthless and quite grubby. I know that's what I am. But I am a person too and still have a right to be addressed properly don't I?


You're right about coming out fighting. I've learnt a lot of life lessons, quite harsh ones at times. I think I must be quite a glass half full person, it isn't forever after all. And my marriage has become stronger, which sadly isn't always the case for people in this position. So I have things to be grateful for.

Kitten868

You're definitely an asset to us on here. Great to know it's strengthened your relationship there's so many challenges that come with debt. I've found taking it on has had a massive impact on my mental health. I feel liberated. That's thanks to Marie Kon and eBay mainly though.
There must be something you want. Perceive it as a treat? New cushions for the sofa? New bedding? A facial? Xxx

marcsshell

Well done on all the hard work you have done when it comes to being in an Iva. They can be soul destroying.
We finished ours 18months or so ago now and the paperwork came through end of last year but that is only because they seem to have forgotten about us lol. We never claimed any PPi back from anyone as even though the Iva company we used sent us documents nothing ever seemed to happen after we had signed and sent them back.
I believe now if we get anything back as the Iva has completed any money would be ours.
People get into an Iva for many reasons. Ours was we had a young daughter, moved to a new house and had a really good interest rate,we lost that deal and couldn't get a new one so mortgage shot up,I fell pregnant with my youngest and we just fell into that trap of robbing Peter to pay Paul.
Childcare costs were crippling even though I was working part time.
Now my girls are 11 and 8 and I have a full time job that fits in with them so childcare as a general rule isn't an issue. We have more disposable income and at the start of this year I have started looking into overpayments on the mortgage and building a savings fund up. Sign that we are finally growing up.
At the time we ran our debts up everyone was happy to throw finance in our direction-catalogue for example kept putting credit limit up each month so I think it got to something g stupid like £8,600 (not that I owed anywhere near that much on it)
I think people who judge need to watch themselves as it can happen to anyone at anytime, as others have said who knows what's around the corner.
Keep your chin up,the end is in sight and you won't have to do anymore horrid income and expenditure reviews x

Lincsdebt

I thought it was time for an update .. this week another IVA payment has left my bank account. Now down to five to go. I look at my hand and the digits represent the number of payments left. My husband thinks it's a bit weird, but it has become a bit of a focus to me. Next month it'll be just as many as I have fingers.


You do weird things sometimes as a comfort. I'm not going to apologise for it.


I would like to thank the people who reacted to my first diary piece - well most of them, anyway. It is good to know that people have had similar experiences, I do think you find strength in knowing that you aren't alone.


Someone asked me about treating myself when the last payment has gone. Near where a work is an outlet called Leon. On their window is an attractive poster advertising a breakfast item and drink for £3.95 .. I see it pretty much daily as I walk by and think, I'd like to do that. But £4 is almost what I spent making lunches for myself for a whole week! So out of the question. But when I have my first pay day after the end of the IVA, I will walk in there and buy that offer (if it's still on). Of course it may not be nice, wouldn't that be ironic? It will be a small sign of victory though.


Of course a real treat will be a holiday in the sunshine. I really want to do that, but only after I've saved up enough to pay for it!


Happy Easter everyone, let's hope we get a bit of sunshine though the forecast isn't looking too promising.