If you can afford £250 a month then although it looks like you might be able to pay your debt through a DMP, an IVA will give you some additional advantages. For example interest and charges on your debts will be frozen. Also your creditors can not take futher legal action against you such as applying for a charging order against your house.
You should certainly be looking for a different bank account. There are plenty of ggod ones which are free. As Jan pointed out, Co-Op is a good one.
I would certainly look at different companies - there are some who accept less than £250 a month and you need to make sure that you can live during the time you are in an IVA.
I would certainly seek further advice.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I can only agree with what everyone else has said.
I am with Co-op bank and pay no fees.
Also if the £250 per month is not affordable, then your IVA might fail if you cannot keep up the payments on it, and you would then be back to square one.
I am with Melanie's team (IVA Advice Bureau) and they go through your income and expenditure in great detail with you to ensure that you have enough money to live on whilst paying off your debts. The key is affordability.
As others have said it would be a good idea to talk to a few other firms on www.iva.com
regards
st75
regards
st75
Started lump sum IVA in Aug 2010 - received certificate of completion April 2011, thanks to Melanie & team
As everyone on here will tell you, committing to an IVA is a serious long term commitment and you must not proceed if you are uncertain or concerned.
The payment should be based on what you can afford - taking into acount all the necessities you would need to provision for - haircuts, dental treatment, clothing etc. If after everything you need has been built into the budget at a level right for the number of adults and children in your house, you are left with less than £250 you know the budget had been set too tightly.
The IVa will be a 5 year relationship where you will need to company representing you to look after you in your best interests and to ensure the IVA remains viable.
It is far better to shop around now even if you have started a ball rolling than to commit and regret it as you'll be stuck then. Some clients don't look at starting an IVA until they have missed many months payments so to have only just cancelled your payments means you have a head start.
If something doesn't feel right or you are concerned then something probably isn't right....or at least it hasn't been explained to you properly.
regards,
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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Hi
Thank you all for you kind advice, I am now waiting for another company to call me. I have however just been turned down for a Coop bank account. I have no idea why, as I have never not paid a bill in my life and unsure why I am unable to get credit. I will try some others and see what happens. Thank you all once again.
Jo
Sorry the Co-op turned you down - what other people have said there are a few another places Barclay/yorkshire Building Society - that do basic account with debit/atm cards. A few you can ring up and they will give a decision right away.
Please let us know what decision you have made both for the bank and the IVA - it just may help somone else
I am confused with it all. I will look up the cashminder account and then give them a call. I have just applied to Barclays but for a current account. Fingers crossed.
Ah - ha -- yes, to open a Cashminder, you have to do it over the phone. It only takes a few minutes and you should get approval in principle right away.
You need to be applying for a basic account, not an ordinary current account.
BTW -- they will probably ask you why you want such a basic account ( hoping to get you to apply for another account). Just say something like you want a no frills account to sweep your savings into every month.
Last edited by Foggy on Thu Feb 03, 2011 4:28 pm, edited 1 time in total.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I have a CO-OP cashminder account. Opened it over the phone, explained circumstances with IVA, no problems opened there and then. Got Visa Debit card through post, can pay in at post Offices as well.
Great account, no awkward questions, no credit search, NO OVERDRAFT FACILITY, and no cheque book. Banking has never been easier. You can use your debit card anywhere but obviously you need funds available.
Only downside is when you pay cheques in at PO they can take a week to clear, but in their branches its normally 3 days.
Many thanks everyone. I have just applied over the phone but they couldnt give instant approval. I have to call the customer service department in 3 days.
Watch this space !!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi - I am also in an IVA where I am paying back the full amount of my debts. After deducting IP fees my creditors will receive 70p/£. So if you can afford any uplifts or receive any windfalls these will contribute to the IP fees...so you may end up paying more than you owe. But in all honesty, my IVA is the best decision I ever made as it gives me financial security and stability and I can look to the future. The IP and IVA are worth their weigh in gold! I opted for the IVA rather than a DMP as it was legally binding, I was protected from creditors, interest couldn't be applied and there was a set finish date. You may have other priorities and should consider both options carefully before making a decision. I'm glad you are Seeking a second opinion...it's always good to have two or three lots of advice to compare. Let us know how you get on hun x
