I'm considering an IVA but the main thing that worries me is my credit rating - does anyone know how hard it is to get credit afterwards? Also do they work out your repayment to your max capacity? The reason I ask is if I can put away a few pounds aswell I can stop relying on credit when somehting goes wrong otherwise I'll just end up back at square one!!
Hi
Your credit rating will be shot for six years from the start of an IVA.If you have a realistic expenditure alowance in your IVA you should have enough money to cover all minor events.You can always ask your IP for assistance should a major expense crop up during the five years
Regards
If you have debts which you are struggling to repay, perhaps the least important thing is the effect on your credit rating - because it has probably already been effected!
If you are looking at proposing an IVA in today's marketplace, you need to be prepared to put forward a realistic budget, where there will be little room for luxuries. You will be allowed a little for contingencies, and you can save that up to use as and when required, but there will be no option to get further credit unless it is with your Supervisor's permission.
Entering into an IVA is not easy, and requires a high degree of commitment and self-discipline. Many people find them an excellent way of dealing with their debts, but a lot of them do seem to fail because of unrealistic figures put forward or demanded by creditors.
I suggest that you have a chat with an insolvency practitioner to see how much they assess you would have to pay, and then do an honesty check with yourself to see if you could commit to that payment in the long term.
You've got the right idea there sesm, you don't want to go back to relying on credit. Your credir rating will be rubbish for six years and then you would have to rebuild it. You will have to pay your disposable income into the IVA but you will be allowed a contingency and you can keep a share of any overtime you might get. This will all help if something unexpected happens. X
Has anyone actually had a look at there credit rating whilst in an iva?? I was just wondering how shot/rubbish/terrible it becomes. I seem to remember I had a 999/1000 score with experian or equifax prior to my trust deed,may just have to have a look and see what its dropped down to!!!
Ack,who needs credit anyways??
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I checked mine with Annual Credit Report - it is a veritable sea of red!!!!!!!!!
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
5 yr in an IVA and maybe 3 more yrs to rebuilt credir ref' and can anyone explain How it is to be done? Is there a way. Post IVA people can you contribute?
Do you get a debit card and rack up on it then pay it off monthly, do HP,but hey don't you need credit to get the credit first?? Sounds like catch 22. I am LOST.
"DEbt is all in the mind. Think wealth and you'll be wealthy but not in £££"
One of the high rate credit cards which is easier to get may be one option,use it a little and pay fully every month. Another thing to do is make sure you are on the electoral role,a home phone,mobile contract,same bank for a decent length of time,it all helps.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
The basic bank accounts report to the credit agencies, as do the mobile phone companies if you have a contract. It might also be possible to get a catalogue account and buy from that and clear the balance each month.
Hi All,
I don't know about anyone else, but I'm hoping to never use credit again (If I can keep the house that is - otherwise I may go in with Gary (or have to get him to do it) to get a mortgage in the future.
I never want to go through all this ever again....
Still at least we have all got our solution - I'd hate to be going for an IVA, ect now with the current climate. As predicted our numers are growing daily!!
Love,
Chardonnay
The thing is a good credit score is essential for so many things these days. I've got a contract mobile with Vodafone and I'd like to change it, but I can't as I know I won't get another one as I'll fail the credit check. At the moment the mortgage is in Dave's name, but I might need to go in with him if things change in the future and I'll probably need HP for a car. I don't want to be paying over the odds for these things because of my credit rating.
Although I don't want one, I can even see the benefits of having a credit card - the XL collapse made me realise that.
