Felling better allready!

[petervr6]

Hi everyone!

It is very eye opening and relieving to see other people on here! I actually feel better allready by writing this!

I am a young guy (well 25 not really that young) and i have been using credit cards over the last 7 years. I have bought things, done things, and havent got much to show for it now! apart fom a big debt and having to sell things and minimise my outgoings.I have allready started in the right direction by making a stand and realising i need help! I need your advice please. A friend of the family had an IVA just over a year ago and he has completely transformed his life and is so much happier! I want to sort it out now, i have maxxed my cards trying to live off them, I was unemplyed for 4 months and now have a good job, I am against a brick wall where i am selling things i really actually need to pay the minimums!

My debts are approx £36000 spread over 3 creditors. I earn £27335 a year so my takehome each month is approx £1550. At the moment my outgoings are more than this hence the debt issue! but the majority of this is on loans and credit cards etc. Could someone please advise me on a couple of things so i can start to think about my options.

When taking outgoings into account, what do they consider? Fuel to get to work? food? clothes? rent? is there a standard number of outgoings allowed? what are they?

Would i have to sell my car and pc to pay back money? I know it sounds like a silly questions but i would not be able to get to work without my car! and i do alot of work from home on my pc?

I understand i would have to close my current account, when applying for a basic account can these have Direct debits for things like my contact lenses and insurance?

I am sorry for the questions but i cant seem to find any simple answers yet?

Thank you in advance!

Pete

[Viki.W]

Hey Pete, welcome to the forum. You're certainly in the right place here for support and advice.

An IVA is only one option for you so I suggest you contact an insolvency practitioner to discuss this. ALL your outgoings should be taken into consideration. You won't have to sell your personal possessions and if your car is needed for work and isn't worth a fortune then you will be able to keep your car. The co-op cashminder is a good account and yes you can have normal direct debits.

Keep asking questions and have a read of some of the threads and information on the site. Good luck and keep posting. X

[aguise]

Hi Pete and welcome to the forum.
when working out all your expenditure you should put down all your necessary needs, right down to prescriptions and dental,pet food any thing that you need. Your chosen Ip will advise if they are considered too high or low or not allowed.
As vicki said there the coop cashminder account is a popular one there is also the natwest step that comes with a solo debit card and the cashminder with a visa electron. The main thing when looking for an account is that it is basic with no credit attached (overdraft etc).

All the best and let us knoow how things are going and ask anything you want .

Ang

[Kazzy E]

Hey Peter, welcome to the forum from me too. An IVA certainly goes give you a new lease of life and the relief of having it accepted is indescribable. I have included a link for you to give you an idea of things that may included in your expenditure list. It is only a guide but your IP will advise you more accurately. You can look on IVA.com for a list of IP's but we are with Melanie Giles and she comes very highly recommended by many others on the forum.

We opened a NatWest Step account for our monthly salary and direct debits (basic account with solo card with internet banking) and we also have a Co-op Cashminder account as well (basic with electron card, DD's and internet banking).

Keep posting if you need any more advice, there's always someone here to help you. Best of luck Kazzy x

http://www.cccs.co.uk/budget/persbudg.aspx

[petervr6]

thanks for the replies! I have looked at that budgeting thanks Kazzy! It lookes like i did have everything on my budget, i didnt know i could put car maintenence and tax on there though! Im getting somewhere!

I have also applied for the Natwest Step account. This should hopefully come through soon so im getting ready for it all.

Couple of more questions if i may. Am i right in thinking that the basic options are that if i have lots of surplus money each month after non debt outgoings then i will be recommended debt management? if i have about £200-£300 spare it will be an IVA? and if i have hardly anything i will be told to go bankrupt? Does that sound right?

Once i make a phone call and set up a meeting do i bring 3 months bank statements? all my credit card bills etc? wageslips? What do i need to bring with me to prove everything said in the phone call?

I think the next step is to keep looking through the posts on here i guess and then phone someone up on my next day off and go through it all!


Thank everyone!

[kallis3]

Hi petervr6, and welcome.

You really need to speak to a practitioner who will give you all your options.

Melanie Giles, who posts on here, is a practitioner and comes very highly recommended. Give her an email (her address can be found on the experts page), and she will give you sound advice as to the best way forward.

[MelanieGiles]

An insolvency practitioner will help you to work out an affordable budget which will be acceptable to your creditors. You need to make sure that you fully provide for all known and contingent expenditure, so it is a good idea to sit down and list all of your outgoingz and incomings to see what would be available to repay to your creditors.

[petervr6]

Great, well i have submotted Melanies "quote form" on her website! I am hoping an email back or phone call after monday to discuss. I just hope that it works out, i work really hard for my money and for the last couple of years i havent been able to enjoy any of it because it just dissapears! I cant wait to be able to budget properley and start a new lease of life!

[kallis3]

Good news. It is a wonderful feeling when you get an IVA approved and you know that once your bills are paid, any money left is yours!

[Soulgrowth]

Just wanted to say good luck Pete ... keep in touch and let us know how you get on.

Debbie

[petervr6]

thanks soulgrowth!

Another couple of questions i thought of today. obvestly at the mo i am looking into an IVA etc and will get advice, but in the meantime i am still putting money on cards etc just to live. Will i get done for fraud or something by carrying on buying food and fuel etc on my credit card when i am looking into the IVA? I dont want to get in any worse trouble than debt? when is the cut off for them to say £x amount is what you owe and will be paid on whatever date?

[kallis3]

If this is what you are doing Peter, you really need to get advice sooner rather than later.

Once you start going down the IVA route then you stop paying your creditors, or you pay them token amounts. That way you can live and also save a little contingency.

You won't be able to carry on like this much longer before your credit cards have little or no credit left on them. I know what it's like - I've been there and it's not nice.