JUST A BIT SCARED ABOUT THE FUTURE...

[RICKI]

I've just found this forum this evening and I feel already like a huge weight has been lifted. I'd like to tell my story, if noone minds...
I'm a married mum of two little ones (3 and 4). Between me and my husband, we've accrued debts of about £66,000. Also got mortgage and secured loan of £27,000. Yes it's bad. Our IVA proposal was approved 1 week ago and although I was expecting to feel ecstatic, I feel so scared about my future. I've been told that our creditors expect to get 100p in the £ back. I understand that if we didn't take on an IVA we'd be in a hell of a different situation (bankruptcy was a real worry) but I keep thinking I'm letting our kids down because I'm not going to be able to give them the life they deserve. We haven't told a soul about our problems but I'm not sleeping well at all and I feel like I'm gonna feel this bad for the next 5 years until it's all paid off. Mind you, then we're going to have to remortgage anyway so I guess it's with us forever.
What would happen if I became pregnant again? I feel like keeping away from him (completely!) for the next 5 years, but I don't really think it'll happen. But how could we afford it?
We live in a 2 bed house and would ideally of extended our home to allow for another bedroom. is there any chance we could still do this?
I'm so sorry for whinging in my first post here but I really need to get this off my chest.
Thankyou.

[jayne]

Hi Ricki I have had an iva for several months now and I can really relate to the sleepless nights. All I can say is that although it is really hard financially going through the IVA it is a whole lot better than worrying how you are going to pay your next bill. I have had to cut out a lot of extras and get back to basic budgetting but its a relief to not have credit cards or loans to worry about- I no longer have to rob peter to pay paul. It does help to talk to people but finding people who really understand the situation is hard. I keep focused on the end result and I to have to remortgage but then I just think further ahead then that a house will get more equity in the future and you will then be able to move on. Is your iva supervisor good? I dont know the answers to your questions about your house and getting pregnant again but there seems to be professional responses on this site that would know. I know that when my mortgage was going to dramatically increase earlier this yr my supervisor said he would go back to my creditors to renegoiate - in the end I did not have to do that has the increase was not as big as I first was quoted. Anyway hang in there and try to relax now its done it really isnt worth the sleepless nights!

[Oliver]

Hi Ricki

I am please to hear that your IVA was accepted. You are now definitly on the road to debt recovery.

In terms of your questions about changes in the future, it is important that you understand the implications of these. If you become pregnant and have another child, this will obviously increase your living expenses. Depending on how much you are currently repaying within your IVA, your IP should be able to go back to your creditors and propose a variation to the origional agreement. This will normally be acceptable if the change has been unavoidable and the return to the creditors remains reasonable.

You need to be aware that it is often very difficult to propose an IVA variation to your creditors if the change has been of your own making. For example, you should be very careful about considering extending your home without having first discussed and agreed this with your IP. Clearly an extention will normally require you to remortgage and release money for the building costs. Unless this is pre agreed with your creditors, they will be very unhappy about this as in effect it will be reducing the available omney for them. If you do this while in an IVA without first getting the agreement of your IP, then your IVA may fail and you will be back to square one.

The first and best rule is always keep in regular contact with your IP and discuss any potential changes as early as possible


You can access Video Clips giving additional information about IVAs at:
http://www.thomascharles.com/interview_ ... an_iva.asp

If you would like more information about IVAs, other debt solutions, or just want to arrange an informal chat, please visit us at www.thomascharles.com.

Best Regards
James Falla
www.thomascharles.com

[neverending]

Hello Ricki
Do not worry about extending your family,creditors will understand that these things happen.As James states as long as your end return is reasonable you will not have a problem.
By the way debts of 66k is by no means "bad" mine is similar !!!
Just interested in why you are paying the full amount of your debts.Can you give more details as to your house equity etc and how much you are paying monthly and the amount of equity you are expected to release to your creditors ?
Regards
Andy

[RICKI]

Thanks so much for your replies. I really do appreciate everyone's kindness and understanding!
Neverending: My house is worth about £100,000 but we bought it for just £44,000. I'm paying £270 mortgage per month, £400 to a secured loan. My IVA payments are going to be £523/month. At the end I'm expected to release about £32,000 to my creditors. I think this sounds steep but I'd love some other opinions on it.
Thanks and looking forward to hearing your views,
Ricki.

[neverending]

Ricki
I wonder if you would have been better remortgaging and offering a full and final IVA ??
Difficult now because you have started your IVA but it may be a useful comment for someone in a similar situation who has not yet started an IVA.
On the plus side all the interest on your unsecured loans has been frozen and all letters will stop so even at the end of the five years you will be better off even though you have paid back all your debt[plus a substantial sum to your IP]
Just wonder how many IPs you approached before you committed ??
Not sure if you have been given the best advice

[RICKI]

Hi and thanks again,
I approached another IP before I set myself with the company I'm dealing with. I was put off the first because I was told that I'd have to pay him £800 to sort the IVA out and let's face it, with this much debt, who can afford £800??
In my first post, I said how nervous I am about all of this but it's lovely to know that I'm really not the only one in this position. How selfish does that sound? Over the past few weeks, I've gone through feelings of complete despair, hope and even wondering if my kids would be better off without me. But if it wasn't for those 2 kids, I wouldn't be able to see any light at all at the end of the tunnel. I need someone to tell me that it really does get easier and I'm praying to God I've made the right decision about this.
Ooh, I'm sounding more depressed by the moment, so I'll go now, but thanks again.
R. x

[neverending]

Ricki
You HAVE made the right decision in starting an IVA.
In 5 years you will be debt free..............how many people will be in that position ?? not many.
Even though you will have to pay 32k in your final year my guess is that your property value will increase by at least that amount so you are in a "win" situation.
Just keep your payments upto date and you will feel a sense of control over your future.You will also enjoy the simple things in life alot more.
Keep in touch
Andy

[RICKI]

Thanks again, Neverending for replying to me.
I think all we often need is to realise that we're not alone and that there really is a light at the end of the tunnel. Okay so that light looks a helluva way off at the moment (hey-ho only 60 payments to go!!) but I'm a lot further on than I was in May, when I was terrified about how I was going to afford the bills and I was concentrating on feeding my kids, so neglecting me and my husband. It's a drastic way to lose weight but I guess it did the trick! Thankyou for showing me that I'm not alone and that, as long as I stick to 'the rules' and I'm totally honest, I shouldn't go wrong.
Ta,
Ricki.

[Oliver]

I am very pleased to see people using this site for support as well as just questions.

I have been working with people going into IVAs since 1998. Believe you me, I have seen many many people who have been in the depths of dispare before considering an IVA. However, the IVA solution has given them light at the end of the tunnel and a new lease of life.

I now know many many people who are out the other side of their IVAs and their lives are totally changed for the better. Remeber, when the IVA is completed, you will have trained yourself to live within a budget. Not only this, but you will have all of your disposable income to yourself. Of the people I have spoken to, once their IVA hgas finished, they simply start to save and this is a very good feeling indeed.

No one is saying that life while you are in an IVA will be a bed of roses. In fact, it is going to be pretty hard sticking to a very strict budget for the next 5 years. However, once it is done, as Neverending says, you are goping to be in the minority of Debt Free people in this country!

You can access Video Clips giving additional information about IVAs at:
http://www.thomascharles.com/interview_ ... an_iva.asp

If you would like more information about IVAs, other debt solutions, or just want to arrange an informal chat, please visit us at www.thomascharles.com.

Best Regards
James Falla
www.thomascharles.com

[RICKI]

Thanks for that reply, James.
As a 'newcomer' to this website I really do think that support is almost as essential as having people available who know the answers to the questions that keep people awake at night.
As I said earlier, I'm a mam of 2 and I am now sleeping better and feeling so much more confident than I have done for a long time now. Yes, I know that the next 5 years are going to be difficult but it has to be done so we'll make it work. I'm a great believer that kids need more love and cuddles than material possessions so for those days when we cannot afford little luxuries for them, it'll be mammy on her knees pretending to be a dinosaur to entertain the kids. And I must admit, I think I'll love it!
R.

[ray72]

hi all what a great site i got the advise i needed, but hay to get support as well i like millions are in debt mine being to the tune of 60,000 you know what if i knew the mess i would get into then i would not of borrowed momey, becouse of my stupidity my family are suffering, and i am sorry for them, but once the iva i am going into is over i will make it up tp them

[iva experts]

Glad the site was helpful to you. Good luck in the future.
Please come back and post on how you are getting on.

[freelili]

HI I AM LILY AND I HAVE ONLY JUST STARTED BUT I CAN SO IDENTIFY WITH YOU. I TOO AM LOSING WEIGHT DRASTICALLY AND HAVE NOT SLEPT AT ALL THIS WEEK, I ALSO HAVE CHILDREN WHO I FEEL ARE SUFFERING FROM SOME OF THE STRESS THAT I AM GOING THROUGH. ITS GOOD TO HEAR THAT YOU ARE FEELING BETTER THAN YOU DID AT THE START, READING YOURS HAS MADE ME FEEL BETTER. I CAN SEE THAT IT IS MORE IMPORTANT TO HAVE PEACE OF MIND AND LOVE AND CUDDLES RATHER THAN MATERIAL THINGS. THANKS

cthomp

[Oliver]

Hello

Being in debt difficulty can be a particularly stressful and upsetting time. However, you only have to read through some of the posts on this site to see that (i) you are not alone and (ii) there are solutions available which offer light at the end of the tunnel.

Good luck in the future and please keep posting to let us know how you are getting on.


You can access Video Clips giving additional information about IVAs at:
http://www.thomascharles.com/interview_ ... an_iva.asp

If you would like more information about IVAs, other debt solutions, or just want to arrange an informal chat, please visit us at www.thomascharles.com.

Best Regards
James Falla
www.thomascharles.com