Advice - I think I've done the wrong thing!

Nicola182

Hi all

Firstly, around 8 months ago I entered into an IVA, deciding that the 262 per month they were asking me to pay was a much better idea than the 800 i was paying at the time.

Now I'm thinking that I should probably have come here first.

I was suffering from extreme anxiety / depression at that time, and to be honest I needed to find an easy solution, and then a nice man from the IVA company called and offered me the solution to all my problems!

Marvellous.

Trouble is, now I'm worried about how long this is going to affect my credit rating for - I've heard several stories and it all sounds pretty bad! I *know* an IVA was a pretty hefty thing to enter into, but with debts of around 30k and being only 24 I didn't feel I had much choice!

I really want to move out of my parents home at some point in the near future, but I guess I've ruined my chances now as I imagine no one in their right minds is going to give me a mortgage or even somewhere to rent!

Please tell me I haven't messed everything up for the next 12 years!!

Billy_two_speakers

Nicola182 wrote: »

Hi all

Firstly, around 8 months ago I entered into an IVA, deciding that the 262 per month they were asking me to pay was a much better idea than the 800 i was paying at the time.

Now I'm thinking that I should probably have come here first.

I was suffering from extreme anxiety / depression at that time, and to be honest I needed to find an easy solution, and then a nice man from the IVA company called and offered me the solution to all my problems!

Marvellous.

Trouble is, now I'm worried about how long this is going to affect my credit rating for - I've heard several stories and it all sounds pretty bad! I *know* an IVA was a pretty hefty thing to enter into, but with debts of around 30k and being only 24 I didn't feel I had much choice!

I really want to move out of my parents home at some point in the near future, but I guess I've ruined my chances now as I imagine no one in their right minds is going to give me a mortgage or even somewhere to rent!

Please tell me I haven't messed everything up for the next 12 years!!

If you where having problems with payments, i think you had damaged your mortgage chances before you started the IVA.

I dont think it will take 12 years to fix your credit rating but if things stay as they are it might be that long before the banks have any money for you to borrow see how things go, someone will be along to point you at compaines you can ask when the time is right to get a mortgage

Bismarck

My thoughts would be around 6 years before you're clear but the way things are, a lot will have changed by then....I've a feeling there's a lot of mess to unfold sometime in the next 12 months and the definition of subprime etc could well change before a couple of years are out..

Nicola182

If you where having problems with payments, i think you had damaged your mortgage chances before you started the IVA.

Thanks Billy, you're probably right. I'd still be in the same situation in 6 years from now if it wasn't for the IVA!!

Interested to know my options though, with regards to renting etc? Would I be able to rent if I had, for example, my dad as a guarantor?

Any advice given is really welcome!

Waspeze

From a Bankrupts perspective, you can still rent if you have a guarantor and/or 6 months deposit up front.

I was lucky told my LA not to credit check me and just used a guarantor and they were fine ... check out a few different estate agents and see what their policy is with people on bad credit.

misspoppy

Hi

You don't have to use an estate agent you can always have a private rental and they wont do any credit checks so all you would need is the deposit and 1 months rent

Nicola182

Another thought - would I be able to pay more towards my IVA, maybe an extra £100 a month or so, and effectively reduce the amount of time I'm paying it off? Would they accept lump sum payments at any time? I really didn't think through what I was doing before I started this!!

10past6

Nicola182 wrote: »

would I be able to pay more towards my IVA, maybe an extra £100 a month or so, and effectively reduce the amount of time I'm paying it off?

In a word, No, your credit rating will show your have entered into an IVA and will remain on there for 6 years.

Who have you done your IVA though?

How come you entered into an IVA, sounds from what you're saying, an IVA may have been mis sold to you.

Did you have any assets when you entered into the IVA?

Nicola182

Money Debt & Credit are the guys who are dealing with it. Like I said, I was in a bad place at the time of entering into it and by the looks of your signature you would've advised me against it straight away! They just helped me out of a very bad place and I think if it wasn't for that, I seriously would not be here today.

I've got no assets. I was just wondering whether it'd be worth paying it off earlier by giving them more each month. I was hoping that then I'd be debt free earlier, and could start using the money to save for when my 6 years is up!!

10past6

Nicola

Post in here, it's the BR & IVA forum, someone with more knowledge than me will be able to offer better assistance.

However, I'm certain from your posts, you've been miss sold and IVA, ask the people in that forum above, they'll put you right.

Good luck

CLAPTON

Assuming your IVA is for five years then paying 262 per month to write off 30,000 of debts is quite reasonable.

There is little point in overpaying as you are not paying any interest on your debt now.... save it up for a deposit on a future mortage or rental deposit or whatever.