Thinking of an IVA

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warren100uk_2
warren100uk_2 Posts: 72 Forumite
in IVA & DRO
Hi all,

Myself and my girlfriend are really getting stressed with our fiances.

We have been keeping our heads above water for a while now and have gone behind on some credit card payments but have got them back upto date. But its getting to the point that we cant afford to buy any food now, and its getting us down. There are many reason for the things being like this, spending too much, my girlfriend was out of work for a while, ive been ill for the last few years and when iam ill ive been having 3 to 6 months off a time and getting basic sick pay.

Anyway am thinking that we should take an IVA, because of getting behind on some payments our credit rating is now shot anyway, so not really bothered about that, but have read so many posts about them and really dont know if its the right thing todo.

We both work long hours, as we all do, so getting second jobs is hard, as we have tried, but we work weekends and days of are never the same.

Have done a SOA, some of the things like mobiles and tv we are locked into, but would welcome any advice.£2503 is what is coming out off the bills account, before we have paid for food and we take home £2500. The SOA says our outgoings are £2305 but they are £2503.

At the start of the year i got so down, with being off work all the time and worrying about money that i did something stupid, if you know what i mean, but am not letting things get that bad anymore.

Thanks

M & J

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 1100
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2500

Monthly Expense Details
Mortgage................................ 787.46
Secured loan repayments................. 457.1
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 38
Gas..................................... 44
Oil..................................... 0
Water rates............................. 24
Telephone (land line)................... 0
Mobile phone............................ 100
TV Licence.............................. 11.95
Satellite/Cable TV...................... 67
Internet Services....................... 16.5
Groceries etc. ......................... 170
Clothing................................ 50
Petrol/diesel........................... 120
Road tax................................ 10
Car Insurance........................... 25
Car maintenance (including MOT)......... 30
Car parking............................. 50
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 33.6
Contents insurance...................... 0
Life assurance ......................... 47.79
Other insurance......................... 37.38
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Milk.................................... 20
HP...................................... 46
Total monthly expenses.................. 2305.78

Assets
Cash.................................... 0
House value (Gross)..................... 150000
Shares and bonds........................ 0
Car(s).................................. 200
Other assets............................ 0
Total Assets............................ 150200

Secured Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 130000...(787.46)...0
Secured Debt.................. 45000....(457.1)....0
Total secured debts........... 175000....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
HSBC...........................3500......70....... .0
EGG............................3600......70....... .0
M and S........................3200......80........0
Argos..........................400.......10....... .0
HSBC Overdraft.................800.......30........0
HSBC Overdraft.................800.......30........0
HSBC Loan......................1000......40........0
HSBC Loan......................15000.....266.......0
Barclay........................500.......10....... .0
Total unsecured debts..........28800.....606.......-

Monthly Budget Summary
Total monthly income.................... 2,500
Expenses (including secured debts)....... 2,305.78
Available for debt repayments........... 194.22
Monthly UNsecured debt repayments....... 606
Surplus(deficit if negative)............ -411.78

Personal Balance Sheet Summary
Total assets (things you own)........... 150,200
Total Secured debt...................... -175,000
Total Unsecured debt.................... -28,800
Net Assets.............................. -53,600

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

======== Enter any other useful information below ========

e.g. the number of adults & children in the household, the number

of cars included in the SOA or anything else that may be useful.

Comments

  • bunny_boiler
    bunny_boiler Posts: 21 Forumite
    Options
    its like looking at our own finances
    my self and my husband are in trouble we are deperately trying not to go into arrears but none of our creditors will help until we are
    our credit rating isnt brill because we have to much credit my husbands wage has dropped by £4 per hour over the last 4 years due to being made redundant twice
    i spend all the time i have on my own crying as i dont know what to do
    am in the middle of speaking to a company called payplan who offer free debt managment plans and IVA's but still dont know if this is the right thing to do!
    anyones advise would be great
    has anyone else heard of this company are they any good???
    i dont know if i can cry anymore!:snow_laug might just go insane instead
    Debt - Nov 2008 approx £26,130 unsecured DMP started January 2009 May 2012 - estimated remaining debt £ 15,267.32
    debt free by 2018 :T


    Official DFW Nerd Club - Member no. 1089 - Proud to be dealing with my debts :cool:
  • trudij
    trudij Posts: 1,905 Forumite
    First Anniversary Combo Breaker
    Options
    There are people who write on here who have used payplan - also it might be worth having a word with cccs - they are meant to be good too. ( I havent used any of them myself, but have heard good things on here about them)

    PLEASE dont despair = you have doen the hardest bit by admitting theres a problem and getting yourself on here and finding help. I know its all looking bleak at the moment, but it really does get better.

    Best of luck, and please keep us updated !!!
    Do not meddle in the affairs of dragons, for you are crunchy and taste good with ketchup
  • RAS
    RAS Posts: 32,660 Forumite
    Name Dropper First Anniversary First Post
    Options
    hi

    Speak to one of the debt charities here http://www.moneysavingexpert.com/loans/debt-help-plan#help and see what they suggest.

    Unless you have a property to protect or jobs that prevent you going bankrupt AND you can guarantee that your personal circumstances will be stable, an IVA is only suitable for a very small proportion of people. If you have health issues, then it may not be the best option.

    You might want to talk to the debt charity about a DMP instead?
    The person who has not made a mistake, has made nothing
  • warren100uk_2
    warren100uk_2 Posts: 72 Forumite
    Options
    Thanks RAS,

    I do own my house, well the bank does.

    I think iam over my illness now, as i said, we have not yet gone behind on any payments but have to sort something out, we do our shopping monthly and spend £170 but couldnt get any shopping last month and after looking at it this month not gotta chance.

    Just dont know what to do for the best, but we will speak to one of the debt charities.

    Thanks

    M & J
  • mistercovert
    mistercovert Posts: 42 Forumite
    Options
    You definately need some advice especially having a large secured loan on the property as well. I would contact both IVA companies and also debt charities and compare what they say and recommend. Don't jump into bed with the first people you contact.
    I wish you well, keep in touch.

    Rob H
  • pennypinching_2
    pennypinching_2 Posts: 94 Forumite
    Options
    Hi I was in a similar situation to you and it really made me ill. I took out an IVA and have never looked back, it really makes you appreciate money and its so disciplined. I havent had any problems yet as I now live within my means.

    However I cant move house while im in my IVA and am worried about my mortgage when my fixed rate ends, not sure whether i will be offered a new fixed rate or whether i will have to go on base rate.

    Im not saying an IVA is an easy option but it really needs careful consideration.
  • RAS
    RAS Posts: 32,660 Forumite
    Name Dropper First Anniversary First Post
    Options
    warren100uk wrote: »
    Statement of Affairs and Personal Balance Sheet

    Monthly Income Details
    Monthly income after tax................ 1400
    Partners monthly income after tax....... 1100
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2500

    Monthly Expense Details
    Mortgage................................ 787.46 - repayment or interest only?
    Secured loan repayments................. 457.1
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 100
    Electricity............................. 38
    Gas..................................... 44
    Oil..................................... 0
    Water rates............................. 24
    Telephone (land line)................... 0
    Mobile phone............................ 100 - this is massive and you cannot afford it. Can you downgrade your contracts even if you are locked in?
    TV Licence.............................. 11.95
    Satellite/Cable TV...................... 67 - you need to down grade this and then go on freeview
    Internet Services....................... 16.5
    Groceries etc. ......................... 170
    Clothing................................ 50 - you cannot afford any at the moent stop buying them
    Petrol/diesel........................... 120
    Road tax................................ 10
    Car Insurance........................... 25
    Car maintenance (including MOT)......... 30
    Car parking............................. 50
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 33.6 - this is a bit high. look at the comparison sites then use a cashback site to swap.
    Contents insurance...................... 0
    Life assurance ......................... 47.79 - this is very high. look at the comparison sites then use a cashback site to swap, although if yuou have been ill it may be an issue. make sure you have cheap term insurance not whole life.
    Other insurance......................... 37.38 - what is this?
    Presents (birthday, christmas etc)...... 20
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Milk.................................... 20
    HP...................................... 46 - on what?
    Total monthly expenses.................. 2305.78

    Assets
    Cash.................................... 0
    House value (Gross)..................... 150000
    Shares and bonds........................ 0
    Car(s).................................. 200
    Other assets............................ 0
    Total Assets............................ 150200

    Secured Debts
    Description....................Debt......Monthly.. .APR
    Mortgage...................... 130000...(787.46)...0
    Secured Debt.................. 45000....(457.1)....0
    Total secured debts........... 175000....-.........-

    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    HSBC...........................3500......70....... .0
    EGG............................3600......70....... .0
    M and S........................3200......80........0
    Argos..........................400.......10....... .0
    HSBC Overdraft.................800.......30........0
    HSBC Overdraft.................800.......30........0
    HSBC Loan......................1000......40........0
    HSBC Loan......................15000.....266.......0
    Barclay........................500.......10....... .0
    Total unsecured debts..........28800.....606.......-

    Monthly Budget Summary
    Total monthly income.................... 2,500
    Expenses (including secured debts)....... 2,305.78
    Available for debt repayments........... 194.22
    Monthly UNsecured debt repayments....... 606
    Surplus(deficit if negative)............ -411.78

    Personal Balance Sheet Summary
    Total assets (things you own)........... 150,200
    Total Secured debt...................... -175,000
    Total Unsecured debt.................... -28,800
    Net Assets.............................. -53,600

    A few ideas. What does the Debt charity suggest?
    The person who has not made a mistake, has made nothing
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