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  • FIRST POST
    • MarkyMark16
    • By MarkyMark16 6th Aug 18, 1:20 AM
    • 8Posts
    • 0Thanks
    MarkyMark16
    What is best thing I can do?
    • #1
    • 6th Aug 18, 1:20 AM
    What is best thing I can do? 6th Aug 18 at 1:20 AM
    I have a big debt problem
    Unsecured Loan of c 18000
    Credit Card Debt of c 15000
    Bank overdraft c1450
    Mortgage of 77,000 plus Government Right to buy equty loan of 23,000

    Is any IVA the best solution
    Would I lose my house at end of the IVA?
    If moved in with my girlfriend does affect her credit rating?
    Any dvice much appreciated
Page 1
    • Craig1981
    • By Craig1981 6th Aug 18, 6:08 AM
    • 152 Posts
    • 69 Thanks
    Craig1981
    • #2
    • 6th Aug 18, 6:08 AM
    • #2
    • 6th Aug 18, 6:08 AM
    I have a big debt problem

    Is any IVA the best solution
    qith assests like a property, yes, possibly only solution to ensure you keep the property
    Would I lose my house at end of the IVA?
    no, not necessarily, you my need to release equity 6 months from completion of the IVA, if not possible, IVA could just be extended slightly
    If moved in with my girlfriend does affect her credit rating?
    no, not unless you have any joint debt with her
    Any dvice much appreciated
    Originally posted by MarkyMark16
    best to speak to Stepchange or Payplan to see best options for you. to be honest, unsure how the government loan on mortgage would be affected, if any
    • fatbelly
    • By fatbelly 6th Aug 18, 7:50 AM
    • 12,545 Posts
    • 9,599 Thanks
    fatbelly
    • #3
    • 6th Aug 18, 7:50 AM
    • #3
    • 6th Aug 18, 7:50 AM
    OK, one step back. If you didn't pay the other debts and opened a new bank account so that the overdraft just became another non-priority debt, could you afford the mortgage and any payments due under the Government Right to buy equity loan*?

    The options if you say 'yes' are a lot different from if you say 'no'

    Whatever direction you go from here, unsecured loans, credit cards and overdrafts that you no longer use, are all non-priority debts and you can write to tell them that you will be paying 1 per month (or nothing) until you compete the advice process.

    In the meantime DO NOT jump into an IVA and don't start any joint financial product with your girlfriend - she needs to protect her credit file (no such thing as a rating)

    We can give better advice if you post a statement of affairs

    *Think that's 1 per month for the first 5 years.
    • MarkyMark16
    • By MarkyMark16 6th Aug 18, 9:55 AM
    • 8 Posts
    • 0 Thanks
    MarkyMark16
    • #4
    • 6th Aug 18, 9:55 AM
    • #4
    • 6th Aug 18, 9:55 AM
    Hi I opened up a new bank account last week and have arranged my salary into my bank account. Yes I could afford the payments of mortgage etc.


    How do I upload a statement of affairs?
    • MarkyMark16
    • By MarkyMark16 6th Aug 18, 10:11 AM
    • 8 Posts
    • 0 Thanks
    MarkyMark16
    • #5
    • 6th Aug 18, 10:11 AM
    • #5
    • 6th Aug 18, 10:11 AM
    Statement of Affairs and Personal Balance Sheet
    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 1
    Monthly Income Details

    Monthly income after tax................ 1570
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1570

    Monthly Expense Details

    Mortgage................................ 513.5
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 83
    Electricity............................. 31
    Gas..................................... 34
    Oil..................................... 0
    Water rates............................. 15
    Telephone (land line)................... 20
    Mobile phone............................ 45
    TV Licence.............................. 12.37
    Satellite/Cable TV...................... 25
    Internet Services....................... 15
    Groceries etc. ......................... 200
    Clothing................................ 20
    Petrol/diesel........................... 240
    Road tax................................ 14
    Car Insurance........................... 57.86
    Car maintenance (including MOT)......... 25
    Car parking............................. 5
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 22
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 10
    Entertainment........................... 50
    Holiday................................. 50
    Emergency fund.......................... 25
    Total monthly expenses.................. 1562.73


    Assets

    Cash.................................... 0
    House value (Gross)..................... 118000
    Shares and bonds........................ 0
    Car(s).................................. 9500
    Other assets............................ 0
    Total Assets............................ 127500


    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 77000....(513.5)....0
    Total secured & HP debts...... 77000.....-.........-

    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Bank Account Balance...........1450......0.........0
    Credit Card 1..................8320......0.........0
    Crredit Card 2.................3500......0.........0
    AO.............................761.......0........ .0
    Unsecured Loan.................18000.....0.........0
    Credit Card 4..................1900......0.........0
    Credit Card 3..................3000......0.........0
    Total unsecured debts..........36931.....0.........-


    Monthly Budget Summary

    Total monthly income.................... 1,570
    Expenses (including HP & secured debts). 1,562.73
    Available for debt repayments........... 7.27
    Monthly UNsecured debt repayments....... 0
    Amount left after debt repayments....... 7.27

    Personal Balance Sheet Summary
    Total assets (things you own)........... 127,500
    Total HP & Secured debt................. -77,000
    Total Unsecured debt.................... -36,931
    Net Assets.............................. 13,569

    Created using the SOA calculator at .
    Reproduced on Moneysavingexpert with permission, using other browser.
    • MarkyMark16
    • By MarkyMark16 6th Aug 18, 10:13 AM
    • 8 Posts
    • 0 Thanks
    MarkyMark16
    • #6
    • 6th Aug 18, 10:13 AM
    • #6
    • 6th Aug 18, 10:13 AM
    PS The Help to Buy Loan is 23,000 forgot to include that
    • Willing2Learn
    • By Willing2Learn 6th Aug 18, 10:44 AM
    • 738 Posts
    • 585 Thanks
    Willing2Learn
    • #7
    • 6th Aug 18, 10:44 AM
    • #7
    • 6th Aug 18, 10:44 AM
    You could cut back on the holiday and entertainment categories. Also, your mobile phone cost is too high. If you are struggling, then 50/month is a lot for presents.

    Edit: How come you use so much petrol? Your car is costing you more than 10/day to run!
    Last edited by Willing2Learn; 06-08-2018 at 11:06 AM.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • sourcrates
    • By sourcrates 6th Aug 18, 1:00 PM
    • 14,867 Posts
    • 13,956 Thanks
    sourcrates
    • #8
    • 6th Aug 18, 1:00 PM
    • #8
    • 6th Aug 18, 1:00 PM
    Hi,


    How much is the help to buy loan per month, or is that inc in the mortgage payment ?

    You simply do not have any disposable income, you could cut back on a few things in your budget, but not to any great extent, so an IVA is out of the question, looks like 1 per month each to the non priority debts for the foreseeable future.

    See if your situation improves in 6-9 months, if not, possibly start asking for the debts to be written off as you cannot afford to service them.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • Brookside88
    • By Brookside88 6th Aug 18, 1:19 PM
    • 246 Posts
    • 340 Thanks
    Brookside88
    • #9
    • 6th Aug 18, 1:19 PM
    • #9
    • 6th Aug 18, 1:19 PM
    200 a month on groceries for 1 person is obscene. you can halve that easily
    Barclaycard CC 5,912.12/0___Virgin CC 5,536.81/5,536.81___Zopa Loan 5,680.83/4,906.17___Tesco CC 1,922.46/1,772.46___MBNA CC 6,323.15/5,696.73
    Total 19,838.56/17,912.17 (9.7%)
    • fatbelly
    • By fatbelly 6th Aug 18, 4:49 PM
    • 12,545 Posts
    • 9,599 Thanks
    fatbelly
    Hi I opened up a new bank account last week and have arranged my salary into my bank account. Yes I could afford the payments of mortgage etc.
    Originally posted by MarkyMark16
    Yes, that all looks good. You can afford to service the mortgage, you have equity in the property that is worth protecting and your income is now going into a new account unconnected to your debts.

    The nuisance is the 36k of non-priority debts. But literally they are not a priority. In the first place you can write to them to tell them you are in difficulty, maybe a letter like this

    https://www.nationaldebtline.org/EW/sampleletters/Pages/Hold-action-on-your-account-%28sole-name%29.aspx

    followed by this

    https://www.nationaldebtline.org/EW/sampleletters/Pages/Token-payments-or-no-offer-of-payment-%28sole-name%29.aspx

    Then you do need to pay some attention to your budgeting. In addition to others' suggestions I would like to see you have some basic contents insurance, unless that's already in the buildings insurance. Then all the other items need careful scrutiny to see if they can be cut and your emergency fund can become an emergency/fighting fund, and any lump sum you get can also go into this.

    You may, in a year or two, be able to offer full & final settlement on the smaller debts.

    None of the insolvency options are suitable for you as things stand
    • MarkyMark16
    • By MarkyMark16 8th Aug 18, 8:03 PM
    • 8 Posts
    • 0 Thanks
    MarkyMark16
    I have been talking to Payplan they seem to be saying that an IVA is the best solution. Also, the creditors will want me to downsize my car as it is valued according to their checks as 9.1K
    • fatbelly
    • By fatbelly 8th Aug 18, 9:22 PM
    • 12,545 Posts
    • 9,599 Thanks
    fatbelly
    Available for debt repayments........... 7.27
    I can't see how you can do an IVA on that.

    Doing a rough calculation, I would have thought they would want 200 a month. To answer the question you asked me by pm, the answer is their fees - around 3k of fees will be built in to the plan. I actually like Payplan but I can't see how they would get you into an IVA, or a dmp for that matter.

    Downsizing the car is an option (hadn't noticed that before) as a 9.1k car is likely to depreciate about 3k in the next year. Offsetting that (maybe) it is still in warranty and doesn't need an MOT yet
    • TheGardener
    • By TheGardener 8th Aug 18, 9:23 PM
    • 2,396 Posts
    • 2,302 Thanks
    TheGardener
    Payplan make money out of IVA's - talk to Stepchange, Citizens adviice or National debtline and make sure you have considered a full range of options.
    • MarkyMark16
    • By MarkyMark16 8th Aug 18, 10:23 PM
    • 8 Posts
    • 0 Thanks
    MarkyMark16
    The car is out of warranty.

    My budget gives 100.00 per month towarda payments so may I uploaded the budget here incorrectly.
    • TheGardener
    • By TheGardener 9th Aug 18, 8:21 AM
    • 2,396 Posts
    • 2,302 Thanks
    TheGardener
    200 a month on groceries for 1 person is obscene. ...
    Originally posted by Brookside88
    No its not - and based on other posts, on here, I doubt an OR would have a problem with it either.
    That doesn't mean there are not ways to reduce the costs.
    • Craig1981
    • By Craig1981 9th Aug 18, 8:55 AM
    • 152 Posts
    • 69 Thanks
    Craig1981
    Payplan make money out of IVA's - talk to Stepchange, Citizens adviice or National debtline and make sure you have considered a full range of options.
    Originally posted by TheGardener
    to be clear - Payplan do not charge you - they are funded by contributions from the credit industry.
    the same is to be said by National Debtline - they also get some funding from private sector and get funding for IVA referrals to the IPs they deal with

    Payplan i have recommended for several types of debt solutions - they do not try to get you on IVA because they make the money - it is what is in their customer's best interest
    • Brookside88
    • By Brookside88 9th Aug 18, 12:23 PM
    • 246 Posts
    • 340 Thanks
    Brookside88
    No its not - and based on other posts, on here, I doubt an OR would have a problem with it either.
    That doesn't mean there are not ways to reduce the costs.
    Originally posted by TheGardener
    Ok, not obscene generally speaking. But for someone trying to claw their way out of a 37k unsecured debt hole, it's a ridiculous waste. I feed 3 for 180. If it was just me I could probably do it for 70 a month
    Barclaycard CC 5,912.12/0___Virgin CC 5,536.81/5,536.81___Zopa Loan 5,680.83/4,906.17___Tesco CC 1,922.46/1,772.46___MBNA CC 6,323.15/5,696.73
    Total 19,838.56/17,912.17 (9.7%)
    • TheGardener
    • By TheGardener 9th Aug 18, 1:21 PM
    • 2,396 Posts
    • 2,302 Thanks
    TheGardener
    Ok, not obscene generally speaking. But for someone trying to claw their way out of a 37k unsecured debt hole, it's a ridiculous waste. I feed 3 for 180. If it was just me I could probably do it for 70 a month
    Originally posted by Brookside88
    Yes, as I said, there is room for savings - that's not disputed. An SOA for a potential BR is not about making savings as such - that's for the debt free wannabe board. The OR and any debt advice service needs to see the actual spend. I know on the DFWB board SOAs are about identifying savings but on this board its more about a combination of actual spend and what would be considered reasonable by the OR. 200 per month spend on groceries is unlikely to be an issue for the OR based on the feedback we have on this board.
    • TheGardener
    • By TheGardener 9th Aug 18, 1:22 PM
    • 2,396 Posts
    • 2,302 Thanks
    TheGardener
    to be clear - Payplan do not charge you - they are funded by contributions from the credit industry.
    the same is to be said by National Debtline - they also get some funding from private sector and get funding for IVA referrals to the IPs they deal with

    Payplan i have recommended for several types of debt solutions - they do not try to get you on IVA because they make the money - it is what is in their customer's best interest
    Originally posted by Craig1981
    We will have to agree to disagree on that one
    • fatbelly
    • By fatbelly 9th Aug 18, 7:21 PM
    • 12,545 Posts
    • 9,599 Thanks
    fatbelly
    It's an unfortunate fact that all advice is influenced by how it's funded.
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