Debt Help

Financefairy

Good morning, 
It's been recommended I post on this board, so if you've seen my post duplicated on the IVA one, that's why?

Firstly I would ask that you don't judge, I am fully aware I have made some very silly mistakes when it comes to my money and I am now trying to get on top of them. 

I have just had a call with Nationwide Partners who after going through my debts with me have recommended an IVA.  I currently owe £15k in unsecured debts across loans, credit cards and store accounts.  I live in a rented property and earn a very good wage but due to a never ending cycle of overspending and not budgeting I've always ended up with more month left than wages. 

I wasn't raised in a household that budgeted and was actively encouraged to take credit cards and loans, its only been the last few years that I've realised that this isn't the way everyone lives and being in constant debt isn't normal. 

The lady I spoke to on the phone was really nice and not judgemental at all, but after doing some research myself I'm still unsure if an IVA is the way to go.  She assured me that I would only be paying back what I owe and there are no hidden fees (I've read some horror stories about this).

Can anyone give any advice or has dealt with this company before and can assure me they are all above board or have some positive stories about IVA's.  Currently with juggling all my debts I'm borrowing what I clear each month and can't really see an end to it. 

I've already downloaded a budgeting spreadsheet and added in my salary and outgoings, so I feel in a slightly better position today, than I did yesterday.  I've also ready that many money splitting into envelopes helps!

At this moment in time I'm looking for any advice that can help!

RAS

Now you've got your Statement of Affairs (budget), do you have enough money to cover your monthly essential spends? If you add in all your irregular and annual spends like holiday, Christmas, insurance, medical and dental, divided by 12, does your salary still cover costs?

What you've got left is what you pay to your creditors. How much do you have and how do you owe each month?

Grumpelstiltskin

OK You are in the right place now.

Start by reading this thread
In Debt and Wannabe Debt Free? first Steps to take are here, please read, then ask questions. — MoneySavingExpert Forum

There is a link to a SOA which you need to fill in, format for MSE and post on here.

It needs to be honest and accurate and you need the APRs of the debts.

fatbelly

I doubt an IVA is going to be appropriate for 15k debt when in rented accom.

Fees are substantial and built into every IVA - Nominee fee and supervisor fees.

Hence no adviser can guarantee 'you will only pay back what you owe'

Nationwide Partners are nothing to do with Nationwide Building Society. It is a lead generator for insolvency practitioners.Listed on Companies house as an advertising agency, the sole director also runs 7 other companies.

They are not accredited to give debt advice

sourcrates

Financefairy said:

The lady I spoke to on the phone was really nice and not judgemental at all, but after doing some research myself I'm still unsure if an IVA is the way to go.  She assured me that I would only be paying back what I owe and there are no hidden fees (I've read some horror stories about this).

Can anyone give any advice or has dealt with this company before and can assure me they are all above board or have some positive stories about IVA's.  


At this moment in time I'm looking for any advice that can help!

A lead generator for an IVA plugger, avoid like the plague, they tell you what you want to hear as all they want is your signature on the dotted line.

She was trying to sell you an IVA, you made the mistake of thinking they were giving you debt advice, they weren't it was all a sales pitch.

To be clear, an IVA is basically bankruptcy for homeowners, your house is protected in an IVA, so if you have 50k plus of debt, and can`t go bankrupt due to having assets, you may consider one.

For most everyone else, they are going to be unsuitable, the issue is that regulation is sadly lacking in the IVA sector, and so you get shysters like this trying to sell them to all and sundry.

fatbelly

If you were led to believe that you were being given debt advice then you should complain to the FCA.

They do not appear as an accredited firm on the FCA register but could be highlighted as a firm acting without permission.

ManyWays

An IVA is a form of insolvency like Bankruptcy and it has the same efect on your credit record.

IVAs are widely missold as they are the only type of insolvency that generates large fees for the company setting it up. 

Just because you are struggling with the payments to your debts does not mean that an IVA is your best option. A debt management plan may be better, or a different form of insolvency. So post a Statement of Affairs and people here will have a look. If an IVA is needed, there are probably better IVA firms than the ones "Nationwide partners" list on their website. 

Financefairy

Thank you all so much for your replies, it's actually quite scary that these companies operate and seem to be taking advantage of those of us in desperate situations. I've been in contact with them and asked them not to proceed with my application, their response did seem to be very pushy and so different from the initial call (which makes perfect sense if they are paid on commission). 
I will get together my SOA over the weekend and maybe look to speak to either PayPlan or Step Change as I've seen them recommended on the forums on this site. 

Grumpelstiltskin

Good that you realised in time.

Remember if you go for a DMP do not start it until your debts have defaulted, there is a reason behind this.
When it defaults that disappears after 6 years even if you haven't paid a penny back. If you start to make payments before default it is marked Arrangement to Pay, that doesn't disappear until 6 years after your final payment, so if it takes 4 years to repay it is marked for 10 years on your credit report.

Financefairy

Grumpelstiltskin said:

Good that you realised in time.

Remember if you go for a DMP do not start it until your debts have defaulted, there is a reason behind this.
When it defaults that disappears after 6 years even if you haven't paid a penny back. If you start to make payments before default it is marked Arrangement to Pay, that doesn't disappear until 6 years after your final payment, so if it takes 4 years to repay it is marked for 10 years on your credit report.

Thank you so much for your advice, I dread to think what mess I'd have ended up in otherwise!