IVA query, doubts...helpful advice welcome

Matthew1279

In a nutshell hoping for a bit of advice from those in the know. Credit card debt, at stage of vicious circle paying minimum payments. Had hoped for a loan to pay off cards but nothing doing there, credit history appears poor due to now renting and although always paid my way on time i am just in too much debt.

Oh a whim and before i contact StepChange to name one of many, typed in Debt consolidation / SimplyMoney. Next thing on a phone call to eager sounding My Consolidation staff but appear pleasent, helpful, i think brokers of sort. Agreed loan no change but some solutions, one it writing it off, another tempting solution it paying a small amount for 60months after that bet is wiped off.

Now, personally, i got myself into debt, i dont believe someone should pay or write off..its my fault…but as i am going around in circles it appears an option is this IVA - which i think it is called.

It worries me, google is my only friend on this! I am aware for 60months my credit history will be well zero…..i am also aware there will be no likilhood of every getting a credit card or loan again…well they say for 60months…but personally..surely the fact i went with an 'IVA' means i'm tarnished ?

So, my questions are, before i proceed, any suggestions, experience, drawbacks? The positives are i pay a small amount, i could save monies myself..live within my means. I am aware any 'windfalls' etc within the 60months would break the agreement…thats fine..unless im suddenly given a massive bill?

What about me renting, 12months time i look elsewhere, credit check and bang….im homeless even though better off monthly being on IVA i might never get a landlord again?

Other than what i have pointed out…and baring in mind this is the solution i have been recommended, the other being declared bankcrupt..or another option of wiping off debt entirely…i dont like that..i should pay my way.

As helpful as this organisation have been…i would feel happier with a recommended one by yourselves..Stepchange? similar thing? i know they share info with all creditors which is fine IF i decide to go down this road. Any helpful advice or perhaps putting mind at rest that this IVA is probably a good idea would be a solution.

thanks

RAS

Who have you actually talked to? As it doesn't sound like the real debt charity.

IVAs are suitable for debtors with houses, lots of equity and stable incomes and debts north of £60k. Inflexible and a lot fail.

They are massively mis-sold to other people because the person on the phone gets a nice commission fee from the IP provider who charges £4.5-9k for helping manage your money for the next 6 years.

Consolidation isn't a good idea either. How much debt? Home owner or renting? Amount you can afford after paying essential each month?

RAS

Matthew1279

Please can you stop re-posting on other threads unless you are answering the OPs queries.

You need to answer the questions above but assuming you are renting with a mere £17k debt, an IVA is not suitable for you. Not least as all forms of insolvency are reported on the public register and finding a new landlord will be much harder with an entry there.

Woe is me isn't helpful in these sorts of situation.

You haven't explained how much you earn or how much you have left each month after essential spends? It would really help if you filled in the Statement of Affairs, aka income and expenditure. But take time over the weekend to do through the last 3-6months statements and work out what you have actually spent on.

If you are unable to service your essential costs and pay the debts off at the minimum, then you will have to stop paying the debts. The sky doesn't fall in, you save an emergency fund and make affordable payments. Your credit record is shot for 6 years but it's already shot.

Which is why you need an emergency fund before you start a DMP. You can do this with Stepchange, Payplan or DIY.

But you need to sort out a few things first.

fatbelly

Hi. IVAs are pretty specialist tools and are widely missold due to the fees that are built in. They are insolvency for people who can't go bankrupt but need to. The usual reason is that they are property owners with huge debts.

You haven't told us anything about your situation, so how can we help? If you seriously want us to comment than post a

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

ManyWays

You have spoken to an IVA lead generator. IVAs are the debt solution that generates the larges fees, the IVA lead generator will probably get £800-£1200 if you sign up, so that is why they called you back quickly and are friendly. The IVA firm itself will get £4000+ 9which is why they can afford to pay lead generators so much.)

IVAs are very very rarely a good option for private tenants. If you need to move you would need a family member to act as a guarantor.

So either tell us about your situation by posting an Statement of Affairs (SOA, see link in fatbelly's reply) OR talk to Stepchange. And block calls from that lead generator, they are not debt advisers and are not acting in your best interest.

Matthew1279

I didn’t expect such a hostile response particularly when I am at my lowest ebb, cheers for that! I am not looking to purchase a new PC where I list all the specs of my computer, likewise filling out a form listings in and out goings I wouldn’t feel is required for a forum where I am just asking general advice. I fail to see the purpose of this as telling you I owe 6000 on one card. I cannot afford more than minimum payments how would this more detailed information help you to give me deeper advice?

However you have answered me regarding this broker company and the IVA then. so thanks for that I will avoid. As for Stepchange etc form filling and then before form is even complete they tell you they will be informing your banks …erm. Not quite yet thanks… at this point I’m making my minimum payments. 16000 debt renting. Ideally a loan to pay off my credit cards. Personally I don’t agree with debts written off etc. but am at the stage where everything is an option sadly. Only my self to blame. I am looking for a solution. Yes my credit history is poor despite always paying never defaulting, but what goes against me is I’m now renting , secondly I spoke to one bank a year back who suggested I take a break from paying for a few months which I did. Only to find out each month adds months onto your credit history which is a little annoying but I should have m read the small print. I suspect if any replies received I will be shouted at and belittled despite only coming in here with the hope of finding some experienced advice, not an excuse for people to jump in and act the Karen, disappointed by this but again at least it appears not simple solution. I will have to keep looking on google for help .

Wanna_Bee_Free

Hi Matthew1279

I rarely post on here as I am not one of the experts but I just wanted to reassure you that the responses you have had were not meant to be hostile. They are from some of the best respected people who give their time freely on here to help others. You say you are at a low ebb and I totally remember how stressful being in debt was. I was over £25k in a hole when I first found the forums. The replies are asking for more information to give you appropriate pointers to what decision to take and what to do next. I totally understand it seems daunting to filling out a form and posting it on here. It's totally your choice. Nothing moves quickly in the world of debt.

The fact that your payment break/holiday a few months ago had small print is exactly why the posters on here are asking you for more info. They don't want to misdirect anyone due to not having the facts. If you are going to master your money and control it instead of it controlling you then there is no getting around the process of looking at your money coming in and money going out. Nobody gets their Statement of Affairs (SOA) right first time it will be a work in progress.

I just wanted to try and help you see people are not meaning to jump on you and act the Karen, they are trying to understand your situation in depth and then steer you to the best path. It isn't something easy to do as general advice but I hope you see it may help you if you do what they suggest.

Take care of yourself, big hugs

Wanna Bee Free

sourcrates

Hi @Matthew1279

There are four(4) available debt solutions in England and Wales, whilst Scotland has its own rules on servicing bad debt.

Three of the debt solutions are regulated, that would include Bankruptcy, IVA (Individual Voluntary arrangement), DRO (Debt relief order) and one informal arrangement, usually referred too as debt management.

Choosing which is best suited to your circumstances is decided by whether you are a homeowner or not, and what your income and expenditure is, there may be more than one solution that fits your situation, but its impossible to say which is best for you until we know what your housing status is, what your income is, and what your expenses are, only then can you move forward.

There is no hostility involved, you just have to provide simple figures to work with, if you don`t want to do that, then no amount of Googling is going to help I`m afraid.

RAS

Just to add that if you do a debt management plan, there are ways to minimise the length of time your credit record is damaged, or to extend it.

Based on your comment, it's likely those reduced payment months resulted in Arrangement to Pay or similar markers. Those stay of your credit record for 6 years after the debt is paid off. A default would at least be removed after 6 years even if you still owed every penny. Perverse but it's the rules.

The other factors are that some creditors are more likely to take legal action than others. People here can alert you to them.

ManyWays

If you want general advice, do not get an IVA as you seem to have no assets to protect and may need a new private tenancy. If you want more specific advice, we need to know more!

As for Stepchange etc form filling and then before form is even complete they tell you they will be informing your
banks …erm.
I think you have misunderstood. Completing the Stepchange advice form gets you Stepchange's suggestions. They will not inform any of your creditors that you are talking to them unless you have told Stepchange to go ahead and set up a DMP.