Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

    • AllTheZeros
    • By AllTheZeros 18th Nov 17, 12:08 AM
    • 1Posts
    • 0Thanks
    Is an IVA our best or even a possible option?
    • #1
    • 18th Nov 17, 12:08 AM
    Is an IVA our best or even a possible option? 18th Nov 17 at 12:08 AM
    Just spent the last few hours pulling together all our debts. We have nearly 65,000 on credit cards and have started being unable to make all the payments now several have come off 0%. According to the step change calculator we have around 600 a month to pay towards our debts (if they accept the self employment, without it we have pennies). Currently payments are closer to 1250. Our household income is fairly small with one salary of 1405 a month after tax, child benefit, carers allowance, tax credits and disability benefits coming to 1279 a month,and self employment averaging around 600 profit a month (this is very steadily growing and has a high hourly rate of 25-80 an hour but can only take on more work as demand builds and to meet time restrictions). We have a house worth around 185,000 and owe 119,000 on the mortgage. Have tried to extend the mortgage but can't due to income being too low. Income used to be a lot higher but after the birth of a disabled child I had to leave work to become a full time carer and over the following 6 years the debts have built up. Debts split between my name and my husband's who works full time. I work a small number of self employed hours on an evening when he can care for our child, however I cannot work during the day due to care needs, one of us must always be available.

    We really don't want to loose our home if we can find any other way to pay back what we owe but now interest has started we're not able to even keep pace. We have actually been on MSE for nearly a decade but have created a new account as our situation has gotten so out of hand. Yes, energy is on the cheapest deal (but still high due to additional requirements of disability), we shop around for car insurance and home insurance, we don't have a spare room for a lodger, broadband, don't even have a home phone, water is on a meter but again care needs means this is over 50 a month, both mobiles are in contract and cannot be downgraded right now, we have no magazine subscriptions, gym subscriptions etc lurking, two cars as live rurally and definitely no way for husband to do the 80 minute/55mile commute without it without a 20 each way taxi journey at the end of the train line and I need a car for the myriad of hospital visits, physio etc each week, we are trying to find my husband a job in a better location hopefully with a better salary too, one car worth around 300 the other worth around 1500. I don't want to be throwing obstacles in the way of a solution but we feel so stuck between a rock and a hard place
Page 1
    • MsVirgo
    • By MsVirgo 18th Nov 17, 1:18 AM
    • 2 Posts
    • 0 Thanks
    • #2
    • 18th Nov 17, 1:18 AM
    • #2
    • 18th Nov 17, 1:18 AM
    Sorry to hear about your situation, just a quick reply not sure if it will help..I was in a similar situation and Step change advised me to go for an IVA. I didn!!!8217;t because I knew as I was coming into a bit of money to pay off a loan and didn!!!8217;t want the inflexibility of no further credit or being unable to move mortgage... eternal optimist I guess. I did pay off a loan but still in a lot of debt but am able to make all payments at the moment. IF you!!!8217;re not able to make all payments then an IVA can give you a nice breathing period and ensure you don!!!8217;t lose your house. Good luck x
    • fatbelly
    • By fatbelly 18th Nov 17, 10:07 AM
    • 12,468 Posts
    • 9,514 Thanks
    • #3
    • 18th Nov 17, 10:07 AM
    • #3
    • 18th Nov 17, 10:07 AM
    Yes you could be looking at a IVA.

    Choosing an IP can be a bit of a minefield. Don't assume that the biggest firms are the best. Debt Camel has a load of articles here that are worth reading
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,697Posts Today

7,649Users online

Martin's Twitter