The Ultimate Incentive muddles along

Dinah93

We were hoping to, but got the call today to say it's not going to be possible, so we're now looking at the IVA route to stop interest and protect the house.

clearmydebts

Dinah93 wrote: »

We were hoping to, but got the call today to say it's not going to be possible, so we're now looking at the IVA route to stop interest and protect the house.

Sorry to hear that We've done that in the past and it's never worked for us, but I know everyone is different. I'm so out of the loop now with stuff in the UK but does the IVA freeze your interest while saving your house? If so, that sounds like a good thing or am I missing something?

It's getting to that crazy time of the year in my world where money can easily get spent on ridiculous things. I am also over eating and have a crazy number of child and adult related things to attend. Feeling sniffly already so must remember to get to bed early on the nights that I'm not doing something. Feeling mentally and physically exhausted.

Dinah93

Yes, IVA freezes interest and reduces minimum payments so if for example they decided we had £800 free for debt repayments a month that is what we could pay for 5 years, in the 6th year they'd either try to get us to remortgage to release a final payment, and if we couldn't we'd have an extra 12 months of £800 a month. With interest as it is we have no way to make all our payments at the moment, we're basically at the point of paying a minimum payment off one card, then when it clears drawing it out in cash to use as the minimum payment on another card. It's no solution.

clearmydebts

Dinah93 wrote: »

Yes, IVA freezes interest and reduces minimum payments so if for example they decided we had £800 free for debt repayments a month that is what we could pay for 5 years, in the 6th year they'd either try to get us to remortgage to release a final payment, and if we couldn't we'd have an extra 12 months of £800 a month. With interest as it is we have no way to make all our payments at the moment, we're basically at the point of paying a minimum payment off one card, then when it clears drawing it out in cash to use as the minimum payment on another card. It's no solution.

Sounds like the sensible option to go for then and at least you are not going to bed at night worrying about money, which isn't good at all Is it fairly restrictive for 5 years, in what you spend on holidays etc or do they just let you get on with it?

Dinah93

You agree a budget, and it's a tight one, but after that you make the payments and get on with it. So if I make a load extra ebaying one month for example then that's ours we don't have to pay it to them

clearmydebts

Dinah93 wrote: »

You agree a budget, and it's a tight one, but after that you make the payments and get on with it. So if I make a load extra ebaying one month for example then that's ours we don't have to pay it to them

That sounds good. Do you think you'll go for it?

Dinah93

I'm going to start making some calls. There is always the worry they'll refuse to accept the IVA and push us into bankruptcy instead, but they wouldn't get as much back that way so I'm hoping not. It's just a bit difficult to do with being self employed.

roomontheend

I wrote message yesterday but it seems to have gone awol. So did your iFA say that remortgage was a night go? As that would have been a great solution, especially with the payments being the same as the current mortgage. Have you been to the CAB as they might be able to make arrangements with your creditors on your behalf. I pray you catch a break soon and that something shows up before too long. So that you can get your head above water. Good luck

Dinah93

Yep mortgage is a no. Due to our credit rating I need to be earning over £22k, which I'm not, to make it possible to extend.

CAB can arrange a DMP but in our situation it wouldn't be a good fit as we'd be paying it for about 15-20 years as interest keeps being added on.

wendz86

Hi,

Hope Grace is ok after the hospital trip and nearly op, sounds like shes a really brave girl.

IVA does sound like the best option. Those outgoings really are crazy but sound unavoidable too. We will all be here to support you.

Archers - congratulations on the new house!

Having a few childcare dramas at the moment which is fun in the run up to Christmas . Poor childminder ended up in hospital and is out of action for a few weeks. Ex is actually off work too as he had his shoulder broken at work but has now moved away and can't drive . Annoyingly half hour by car but has to get train into london and out again to come over. So now juggling between one of the childminders friends who doesn't do school runs, neighbour is taking Poppy to school in the mornings and my mums coming up to help out some days when ex can't be there. Could be worse but is a bit stressful!