I think I've been miss-sold

bea_ch95

So I'm over 12 months into my IVA and after doing a little research on this forum I think I have been miss-sold the solution.

I had around £15,000.00 in debt across 2 credit cards and 1 loan. I'm not a homeowner but I do have a car (the loan was taken out to buy the car).

Like most during the lockdown, my debt spiraled and I panicked and took out an IVA as my mother had done whilst I was growing up. 

They now want to put my monthly payments up by £70.00 and I'm thinking is this right for me?

Grumpelstiltskin

Looks like you didn't do enough research before entering the IVA.

Did you speak to one of the free debt  charities or did you go straight to an IVA company

bea_ch95

Grumpelstiltskin said:

Looks like you didn't do enough research before entering the IVA.

Did you speak to one of the free debt  charities or did you go straight to an IVA company

I spoke with a company called UK Debt Advisors Ltd which then led me to speak to the IVA company Debt Movement...

Grumpelstiltskin

So you didn't go to one of the charities. The company you spoke to makes it's money by referring you the IVA company who charge you huge fees for something that was not the best solution for you.

So yes it was mis sold but also you didn't  do as much research as you should have done.

You can stop paying and let the IVA fail, but it will take time to happen and if you do stop you should save as much as you can towards whatever you do decide to do.

Hold on on here until one of the experts come along.

sourcrates

You can let it fail, it takes around a year all told, you could save quite a bit of money during that time, enough to make settlement offers on your debts perhaps?

mrcactus

I did exactly the same thing! Had letters from the credit card companies telling me about new rules coming something like "If you have been paying the minimum payment for a long time, we may demand the full balance from you". I panicked and before I knew it I was on the phone with Swift Insolvency Solutions setting the wheels in motion for an IVA.

After a few months, I realised I shouldn't be in one with £14k odd debt and non-homeowner. But I decided the strict rules with the IVA would benefit me as I have no self-control when it comes to money. I have since taken out a special IVA loan to buy myself out of the IVA and now only have 15 more months left on the loan and Im all done.

Do you have an update on what you decided to do?

bea_ch95

mrcactus said:

I did exactly the same thing! Had letters from the credit card companies telling me about new rules coming something like "If you have been paying the minimum payment for a long time, we may demand the full balance from you". I panicked and before I knew it I was on the phone with Swift Insolvency Solutions setting the wheels in motion for an IVA.

After a few months, I realised I shouldn't be in one with £14k odd debt and non-homeowner. But I decided the strict rules with the IVA would benefit me as I have no self-control when it comes to money. I have since taken out a special IVA loan to buy myself out of the IVA and now only have 15 more months left on the loan and Im all done.

Do you have an update on what you decided to do?

Do you have any more information regarding the loan? This might be something better for me...

sourcrates

bea_ch95 said:

mrcactus said:

I did exactly the same thing! Had letters from the credit card companies telling me about new rules coming something like "If you have been paying the minimum payment for a long time, we may demand the full balance from you". I panicked and before I knew it I was on the phone with Swift Insolvency Solutions setting the wheels in motion for an IVA.

After a few months, I realised I shouldn't be in one with £14k odd debt and non-homeowner. But I decided the strict rules with the IVA would benefit me as I have no self-control when it comes to money. I have since taken out a special IVA loan to buy myself out of the IVA and now only have 15 more months left on the loan and Im all done.

Do you have an update on what you decided to do?

Do you have any more information regarding the loan? This might be something better for me...

You can only access the sprout loan in year 5 of your IVA as far as I am aware.

lesleyvhalifax

sourcrates said:

bea_ch95 said:

mrcactus said:

I did exactly the same thing! Had letters from the credit card companies telling me about new rules coming something like "If you have been paying the minimum payment for a long time, we may demand the full balance from you". I panicked and before I knew it I was on the phone with Swift Insolvency Solutions setting the wheels in motion for an IVA.

After a few months, I realised I shouldn't be in one with £14k odd debt and non-homeowner. But I decided the strict rules with the IVA would benefit me as I have no self-control when it comes to money. I have since taken out a special IVA loan to buy myself out of the IVA and now only have 15 more months left on the loan and Im all done.

Do you have an update on what you decided to do?

Do you have any more information regarding the loan? This might be something better for me...

You can only access the sprout loan in year 5 of your IVA as far as I am aware.

for me it seems pointless to offer the loan in the final year of an iva.

fatbelly

There might be rare cases where it makes sense but in most cases it's just another way for parasites to make money out of people in debt.