IVA - Mature student - advice?
Hi,
Head is all over and hoping to get a little advice.
I'm a mid-20s postgraduate student and work anything from 20 - above full time hours a week on a 0 hour type contract. My very variable income and modest salary has been a big issue on top of other things (currently looking for a perm job with fixed hours) and my total debts are less than 20K inc ODs, credit cards and a personal loan (taken out 2 years ago to consolidate debt). My plan was to try and boost credit rating enough to balance transfer debts to a better deal and then really hammer it once I was on a proper FT salary.
I've been looking into IVAs for about 6 months but what put me off was the public register and the fact it knocks your credit rating for 5 years or so.
I've come to realise I can't go on as I am. It's having a significant effect on my mental health and I need to get things sorted and feel an IVA is my best option having looked through alternatives.
I've been on StepChange and they advised IVA also. My main worry is not getting accepted, even though I know most do and the implications of this in the near future. As I'm retraining, alot of jobs require travel so I know driving is going to be essential at some point. I wouldn't want an amazing car, just something half decent that's not dropping to bits to get me from A to B but worried about getting finance (I know you need approval to get more than 500 credit).
Would love to hear from anyone who's had an IVA, especially those who like myself are pg students.
Thanks
Head is all over and hoping to get a little advice.
I'm a mid-20s postgraduate student and work anything from 20 - above full time hours a week on a 0 hour type contract. My very variable income and modest salary has been a big issue on top of other things (currently looking for a perm job with fixed hours) and my total debts are less than 20K inc ODs, credit cards and a personal loan (taken out 2 years ago to consolidate debt). My plan was to try and boost credit rating enough to balance transfer debts to a better deal and then really hammer it once I was on a proper FT salary.
I've been looking into IVAs for about 6 months but what put me off was the public register and the fact it knocks your credit rating for 5 years or so.
I've come to realise I can't go on as I am. It's having a significant effect on my mental health and I need to get things sorted and feel an IVA is my best option having looked through alternatives.
I've been on StepChange and they advised IVA also. My main worry is not getting accepted, even though I know most do and the implications of this in the near future. As I'm retraining, alot of jobs require travel so I know driving is going to be essential at some point. I wouldn't want an amazing car, just something half decent that's not dropping to bits to get me from A to B but worried about getting finance (I know you need approval to get more than 500 credit).
Would love to hear from anyone who's had an IVA, especially those who like myself are pg students.
Thanks
0
Comments
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Hi,
Do you own a house or have significant assets ?
Usually an IVA is an alternative to bankruptcy for a homeowner, or if you have significant debt and bankruptcy is not an option for you.
I had one, it’s six long years of hard slog, and very tight budgeting, not recommended unless absolutely nessessary.
Have you looked into a debt relief order (DRO) ?
You may qualify for one.
Otherwise I would say look at bankruptcy as an option, it’s over in one year, clears all your debt, and you can start again.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
From your post my concern would be the affordability of the IVA when your income fluctuates so much. You are also on a zero hour contract, so what if you get no hours, or say only 5 hours a week for a month? I would suspect the IVA would be based on an average income over a whole year, possibly, so this could cause problems in the months where you earn less than the 'average' wage if you haven't put money to one side in the higher months (which is harder to do than it sounds!). Even if the IVA payment is based on your 20 hours per week, this means you will be accruing additional monies in the months you earn more than this so you will have to be disciplined to ensure that you pay these in, again this can be harder than it sounds when you need/want to buy other things.
The other concern is your desire to buy a reliable car so, I think from your post, you would be asking permission to get car finance on the IVA. It is not completely unheard of an IP authorising this as presumably this is when you would be changing to FT income so your IVA payment would actually increase despite a HP payment being included as an expenditure so there would be no detriment to creditors, infact they would be receiving more payments. However, my concern would be a car finance company accepting the valuation. I used to work for a subprime car lender who previously did offer IVA clients finance as long as their IP authorised it, they then stopped this due to the higher risk (lots were defaulting).
How long is it until you have retrained and will be able to get FT employment? A short term debt management plan whilst your job/car/income stablises may be more suitable, then you can enter an IVA once you have the car and are sure you can maintain the IVA payment for 5 years.
Or, as others have suggested, possibly bankruptcy now if you have no assets, although do make sure you check this doesn't affect applying for jobs in the area you are retraining in!0
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