Should I get an IVA?

Deccsy87

Hi everyone. I hope you can help.

I've gotten myself in a big pickle. I've been dealing with a gambling addiction which thankfully I'm now on the other side of but i've racked up £22k worth of debt. I have a full time job but not paid that well and repaying £461 each month with nearly 4 years left. It leaves me with very little once i've paid everything out.
I've not told anybody out of pure shame and my family are just assuming I'm saving.
My current credit score is quite good (857) but I have been speaking to Giraffe Money about an IVA. I don't know what to do because, I'm still living at home with my mum who is 72. I've been told I won't be able to get a mortgage for 6 years but if something bad happens to my mum in those 6 years - I may need to if I have to sell the house.

Has anyone had experience with Giraffe Money and is it something I should do?
This is really affecting me and it's making me ill. I don't know what to do.

Clive_Woody

You will be better off talking to one of the free debt charities such as Step Change (I believe that Giraffe are a business not a charity).

Others more experienced will be better able to advise.

https://www.stepchange.org/

Grumpelstiltskin

Do not touch an IVA with a barge pole for that amount of debt.

All you speak to at these IVA companies are sales  people, all they are interested in is getting you to fall for their spiel and sign up for an IVA even if it is the very last thing you should be thinking about.

Forget your credit score it is a made up figure that lenders do not see but you will have to realize you will be paying debt off ( OK with a lot more information from you you may be able to reduce the amount you owe ) and you will not be taking any form of credit out for some years.

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

Complete a SOA truthfully and with full details of debts with interest rates and monthly payments due and format for MSE and post on here.

Brie

I agree with Grumpelstiltskin about avoiding an IVA, particularly with a company where you will be paying them to manage it.  

Also suggest you might want to read this from Debt Camel about the other debt solutions that are available.  Debt solutions - what is your best option?  

And yes - whatever you do you're not going to be on the top of any bank's preferred lists to loan money to for a mortgage or much else - at least not for a little while yet.  But the sooner you get on a path to sorting the debts out the better a risk you become.  

And again yes - StepChange is a good organisation - just proceed with caution as they are getting a reputation for pushing people towards Debt Management Plans too early.  You need to wait until all your debts have defaulted.  Your other options are NationalDebtline, Citizen's Advice, Christians Against Poverty (CAP) and Community Money Advice (CMA).  I know that the latter two tend to give a more holistic approach to helping with debt advice which might support you better if you've also been dealing with an addiction such as gambling.  It's good to know what alternatives there are as some advice agencies are backlogged due to the number of people struggling with money issues over the last few years.  

Best of luck, hope you get to the point sooner rather than later where a mortgage is a possibility.

Deccsy87

Thank you, i appreciate it. The sooner I can get back on track the better.

fatbelly

Giraffe money is a trading style of Lawson Fox, an Insolvency Practitioner dealing in IVAs. It is not surprising that if you ask for help from an IVA pusher that they recommend an IVA

You should discuss your situation with someone who has no product to push, like National Debtline or Citizens Advice

You don't give a lot of detail in your post but there is nothing there that shouts that you need insolvency. Maybe post an soa

https://lemonfool.co.uk/financecalculators/soa.php

ManyWays

Another one saying avoid Giraffe money - if they can't sell you an IVA, they will refer you for a fee-charging Debt Management Plan, when you can get exactly the same DMP with no fees being charged..

Stepchange would be a much better firm to talk too for a DMP or an IVA..

I'm still living at home with my mum who is 72. I've been told I won't be able to get a mortgage for 6 years but if something bad happens to my mum in those 6 years - I may need to if I have to sell the house.
May you likely to inherit money if your mum dies? That is another good reason to avoid an IVA, as if you inherit during the 5 years of an IVA, the inheritance would be taken to repay all your debts in full, plus the high IVA fees. 

If you need to pay less a month then a DMP would be a better option. And you could combine this with making affordability complaints against your creditors, which may result in you getting the interest removed from balances. 

sourcrates

IVA`s are for homeowners with debts in excess of 50k, not for someone still living with their parents.

There will be a better solution, but please take debt advice from someone not trying to sell you anything.

Giraffe money are one of many debt management companies that try to sell IVA`s to people for whom they are totally unsuitable, avoid them, and any other company like them, the advice above is all good.