First Post and help

[hr1350]

Hi
I have just got to the point where I can no longer continue as I am, I take home £1151 a months but am currently paying out (when i can make payments) of £900 a month, this does not include rent and normal living costs.
I have no mortgage as live with parents (who do not know about my problems) so no capital etc. My total debt is around £36,000 (scared the crap out of me when I worked it out today). I am awaiting a call from Payplan today to discuss my option. I really do not want to go through a bankruptcy and am preparred and willing to enter into either an IVA or payment plan.
I am currently incurring charges nearly everyday through my bank which is making things worse.
I hope I will have a better picture when after the phone call but couple of questions.

Can anyone recommend a good bank I can move to that offer a basic account with debit card?
Are the pre-pay cards worth going for?
Do you continue to make payments to creditors while going though this process?

I am stress beyond belief at the moment and trying to put on a brave face but I really have no idea what I need to do.
thanks for now
hr1350

[ray_a]

Hi HR

Welcome and I am sure the experts will be on to advise you as to the best way forward.

It is always a fright to see how much debt you have arisen and there are a good number of ways to sort this problem out. After all we have all been there!
Sounds strange but it is true ascetrtaining the problem is 50% of the way to sorting it out.

As for the bank account there are a number of banks that will give you a baasic bank account and card. The best in my opinion is the Co Op cash minder which gives you an elkectron card.

You can also get a cash plus master card which is very good and you do have to pay an initial fee and a monthly fee but is good value, Their web site is:-

www.mycashplus.co.uk

Good luck and keep us posted!

Regards

Ray

[finebridge]

Hi and welcome to the forum,

You would need to open a basic account with any bank/building society that you have no borrowing. I have heard Co-op were good and in my experience Abbey have also been helpful.

I do not have a lot of experience with pre-pay cards so therefore would rather not comment, maybe someone else will post about them.

We usually recommend once you have made up your mind that an IVA is the best way forward to stop making payments although some people like to make token payments.

Please try not to stress, you have made the first step to sorting out your finances and with the help and support of a good IP/debt advisor and other members on this forum you can find the right solution and be more at peace!

Kind Regards

Nicola

Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

[finebridge]

Whoops...seem to have posted at the same time!!!

Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

[aguise]

Hi hr1350
We have all done the working out and had the same shock its always more than you think. Dont worry there is always a solution.
There are lots of accounts and others will be along with suggestions. I am with thinkbanking. If you put it in the search there should be a lot ore info on the ac. This account accepts everyone ther is a monthly charge but this covers you against charges, allows you a debit card (only for whats in the account) They seperate your bill money from the rest and transfer it so you always know how much you have, if you google it you need to look at the managed ac. You can open it over the phone or online I think.
Keep posting and let us know how you get on, ask any questions if you need advice. If you want to post more details like income and living costs then others will advise.

All the best to you.

Ang

[aguise]

All posted in unison.

Ang

[hr1350]

Thanks for the posts so far, quick response! I am sat looking at my phone waiting for it to ring from pay plan (as well as smoking way to much this afternoon). Will post how I find the call later on.
Once again thanks for the advise so far

In over my head looking for somewhere to turn

[ray_a]

Hi HR

Look at other experts on this site as well as there are a good number who can help you!

I find Melanie very helpful!

The debt problem has taken a time to amass and you have a few days to consider your options so please don't panic!

Good Luck

Ray

[Adam Davies]

Hi
Good advise by Ray.
Don,t just rely on payplan,have a look at another one or two providers before deciding.
I will echo Aguises thoughts on Think Banking,yes it costs £12.50 a month but that is ALL that you will pay,there are no other charges.Also the Maestro card is useful.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[hr1350]

I have just finished my call from Payplan.

After going through the sums they have advised I could afford £439.68 as a debt management plan rather than an IVA over a period of 6.5 years.

I ask about an IVA and was advised that my current rent of £70 a week to parents would have to be reduced if an IVA was to be considered.

I am not sure what to do now, and DM plan might be something to consider but he did say that two of my creditors (American Express and Citi Cards) are not best now for excepting DM plans. Is this something to consider rather than IVA, it would take longer to pay everything off but would not be as formal but also not legally binding for all creditors which could lead to CCJ actions etc.

Can anyone recommend other companies I can contact that have good reputations?

First think I will do is look to open either a co-op account or the other one that was mentioned (the managed account).

Still confused?

In over my head looking for somewhere to turn

[scaredkez]

hi hr1350 i would shop around, and see what other advice you get, try the companies on here, i didn't find payplan too good to be honest when i approached them after my iva was rejected and the poor man they assigned to me was so foreign i couldn't understand a word he said, good luck in your search.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[finebridge]

If your debts can be paid off in a DMP in under 9years creditors will quite often prefer this method of payment to an IVA, but as Kerri has advised it would be good to try and chat to a couple of different companies to see there take on your situation.

Hope this helps

Nicola

Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

[hr1350]

I will do some calling - although might have to book some time off work to do it!

After going over the sums the proposed figure is £439 a month on a DM scheme. My take home is £1150 a month (pay rise pending) so after rent it would leave me with around £400 a month to cover car, food ect, I think I will see what the plan is when it comes through in writing and depending on all of the creditors agreeing it would leave me more than an IVA i think.

I have also gone and opened a Think Banking account as this will help me control what I have to spend and not have to worry about things bouncing. I most say I feel better now than I did before the call the man I talked to at Pay Plan (andrew) was very good at explaining everything to me.

My mind is still racing but after months and months of things getting more and more difficult and my debt being the first thing I think about in the morning and the last thing I think about at night I have talked to some and taken a first step.

Will keep posting on what happens next.

In over my head looking for somewhere to turn

[hr1350]

Another question I have just thought of, can a DM plan be taken out, see if it is suitable then if it turns out it is not a right move then be considered for an IVA or is it a case of once taken out any change to that is considered a bad move?

In over my head looking for somewhere to turn

[aguise]

Hi again
A lot of people move on from a dmp to an iva , it just depends on what is right for you. I would try to talk to another company at least to get their view and agree the ones on this site are all good.
Hope you get on ok with thinkbanking I have found this ac really good and am very happy so far, its nice to have that bill money away so you knowherew you are.

Ang