IVA And Savings Question

saving_88

Hi, Currently i have 21k of debt. I was on a debt management plan paying 139 per month This was working, but recently one of my creditors said it was only for 6 months and have started charging interest. Also have a Line of credit and short term loan. Total monthlies on Repayments is about 400 plus 300 for finance.  When i add other cost and luxuries in im left with a limited amount each month. Debt has actually gone up with them. I also do have a car on finance. 
I have joined an IVA, more for the reason of freezing interest and my payments will be a lot less then currently paying. 

Now im a bit wary about this. I have read that any extra savings you make the IVA will take it. My reason for going to an IVA is to actually save more for myself and holidays, emergancy expenses etc. 


At the moment i have nothing left at the end for emergencies. With an IVA i will have a bit left over which i want to save, use to go holidays or buy any luxury items.
As the IVA checks your bank this is not possible i guess. The yearly review they will see my savings i guess. 

Is there any way to save on an IVA, and keep the money for myself. Or am i better on a DMP. In a DMP they dont check your bank.

Also i signed up for the IVA, Can i cancel. Im not sure having money monitored is for me. 
Also i would want to upgrade my car and can afford to get another finance deal whilst trading mine in. But an IVA makes this impossible, Unless i finance it in a fmaily members name and pay them every month.


Any tips for how i can save money, Yes i want to pay debts off but at the same time we all need to save for ourselves and treat ourselves.

I was thinking another bank account and move money around using cash withdrawals. 

fatbelly

You have formally declared that you are insolvent. Think of an IVA as bankruptcy for someone who has an asset to protect, such as a house.

You will be required to pay surplus income, plus hand over any windfall, for a minimum of 60 months.

When was the official start date of the IVA?

saving_88

It still needs to be approved. I think i am going to cancel it then. The whole point of paying less a month was to save more in savings. Seems an iva will take that. So i would rather go back to my dmp where they dont check the bank. 

Its currently at the stage of waiting on creditors to approve. I have signed. Can i cancel it now. Its creditfix the company. I get i have to pay debts. But also someone does need a life and enjoyment to. I can go to a dro. My car finance company has said any insolvancy they wont take car away as long as i pay them 

fatbelly

That sounds like the way forward. Let creditfix know in writing (email will do) that you do not want to proceed

You shouldn't be paying for a debt management plan as stepchange/payplan do them for free.

However it's going to be more straightforward if you go self-managed and use the debt free wannabe board for support.

saving_88

I have a stepchange dmp. I only went to iva because one creditor is applying interest now. All the others have defaulted and no interest being applied. Now my worry is ive applied for a iva. Some paperwork has prob been sent. So creditors know i have a nice expensive car on finance as a asset. They might now change the dmp to ask for more.

Emaild creditfix. I feel these companies mis sell them. I asked about savings. Using cash to go on holidays and buying luxuries. They said its fine do what you want. But goigle and pages here say i cant spend as much. 

RAS

saving_88 said:

I have a stepchange dmp. I only went to iva because one creditor is applying interest now. All the others have defaulted and no interest being applied. Now my worry is ive applied for a iva. Some paperwork has prob been sent. So creditors know i have a nice expensive car on finance as a asset. They might now change the dmp to ask for more.

Emaild creditfix. I feel these companies mis sell them. I asked about savings. Using cash to go on holidays and buying luxuries. They said its fine do what you want. But goigle and pages here say i cant spend as much. 

You'd be better off with your own thread. IVA's are only suitable for people with a high debt and an asset like a house or Rembrandt to protect. Occasionally for those with a lot of debt and a smaller windfall to clear it.

But choosing an IVA because one is still charging interest indicates that the DMP was set up in a rush rather than that you need an IVA.

I'd suggest you cancel the IVA  promptly and look at a self managed DMP in the short-term. Check you credit records, have your existing debts all defaulted?

fatbelly

This is fine as a thread to deal with the immediate issue.

Creditfix are trying to keep you in an IVA. You certainly can't ' do what you want' in one. You are legally bound by the terms you agreed to.

As for the 'nice car on finance', don't worry. Assuming this is HP/Pcp, it is not yours until the final payment, so not relevant to your dmp.

sourcrates

I`m glad you reached out for advice on the IVA, totally unsuited to the constraints that would impose on you.

To get interest stopped, you need to go cold turkey, stop paying all your unsecured, non essential debts for 6 months or so, obviously watch the post, but after that time all should have been defaulted with any luck, and possibly sold on to 3rd parties.

That is the time to start a DMP, self managed is best, just agree terms with whoever writes to you, simple, no pressure, no need to adhere to anyone's silly rules, do as you please, save as you please, no brainer to me.

saving_88

Thanks for the advise, Most creditors are not applying Interest in MY DMP and most have defaulted. It was just one that wasn't paying ball, Hence I reached out to Get a IVA. 
But it seems there are more restrictions then good. I have emailed Credit fix now. MY DMP is still active so will go with that still. One creditor that still charges interest have said they will default account, This was in December. They still have not done it. I guess they are trying to Add as much interest as possible. 

Back to my Original question, there is absolutely no way of saving in a IVA. So doing cash withdrawals and depositing into a family members account or another account that doesn't show up on credit reports.

fatbelly

I've dealt with Creditfix a couple of times and found them ok. They are the biggest IVA provider, and although they could pursue for fees, didn't try in the cases I dealt with. Bit of a waste of time for them. Plenty more fish in the sea.

saving_88

I phoned them up, he started asking why. Saying advise ive been given is wrong. Said i can do what i want with money savings etc. A managers is going to ring later, i guess to persuade me to stay. what shall i say.