Looking for some advice Please

[jaydecay]

Hi all,

Im sure there are loads of people who have been or are in the same position as me so some advice would be great.

Basically, am not a home owner - so have no secured debt. I owe around £30k in unsecured loans - the biggest chunk of which was a bank loan which I took out earlier in the year with a view to consolidating my debts. I owe around £3k on credit cards and £2k on car finance. I also owe an addition £2k on student loans. All in addition to £25k loan

I currently pay out in the region of £600 in loan repayments and card payments every month

Obviously I cant take out any further consolidation loans but find a real struggle to meet these payments on top of rent, and living expenses.

I have spoken to members of my family (at the start of the year) with regards to doing an IVA to clear all these debts once and for all but was convinced that taking the huge loan would be a better idea.

I worry that an IVA would blacklist me going forward and could have a bearing on future jobs (the one i have now involved me being credit checked).

Any advice greatfully received!

[andymac]

Hi and welcome.

You will find many helpful and very knowledgeable people on this site who will offer their advice.

Ask whatever you feel is necessary.

The fact that your current job requires credit checking may mean you have few choices. What is your current job and how much disposible income do you have after paying essential bills (rent, food, heating etc)

Good luck

[jaydecay]

Hi andy,

my current role isnt anything grand - I do payroll. Im only a temporary employee too - my contract ends in April after which time I'll need to go and find another job.

I work for a big multinational though who require police and credit checks for all employees - dont know if this is a usual thing or whther its just something this particular firm insist on.

My disposable income after rent, food and all my repayments is probably around £200 a month which out of which I need to cover car costs.

Thanks for any advice you can offer

[andymac]

the people here will need to know your monthly disposible money without taking into account your credit payments.

so, add up your rent, food, car, council tax.... everything you spend per month, but dont include the payments you make to loans etc.

Also, you need to state roughly what % you owe to each creditor, eg 15% to natwest, 50% to abbey national etc etc. this will help them give you some good pointers.

I am not experienced enough, but I know from reading many posts that they will ask for these details.

best wishes

[jaydecay]

The breakdown of debt is 80% Natwest, 12% Capital 1, 8% Car finance (I forget the name of the company off the top of my head)

The biggest debt by far though is Natwest.

My "free money" each month is probably around £500 to cover rent, food, car etc. Luckily my rent is only £200 per month.

[hymers]

I think you need to speak directly with an IVA specialist (even try a few to get different opinions maybe) to tell them all the info and see what they advice it is then up to you what you do you will need a complete list of every single thing you pay out all bills, loans, overdrafts etc, credit cards, hire purchase, food, petrol, car maintenance etc , include everything then they can make a realistic recommendation to you. make sure you use a reputable company this is vital.

Wishing you all the very best.

J


I am in an IVA currently

[debbiw]

Hi
I haven't heard of payroll jobs being credit checked before, as I was previously a payroll manager. It must be just the company you work for policy.
You need to check your terms and conditions of your future employment,
or if you do decide to go into an iva, be upfront with your future employers x

[Adam Davies]

Hi Jaydecay
With one creditor having such a large part of your debts you may find an IVA difficult to get them to agree to.
If you are struggling then you would be better contacting them directly and trying to agree a way forward.
You have to be insolvent to enter into an IVA and from reading your post it appears that you can meet your minimum payments although I appreciate that you are finding it difficult.
Have a chat with Natwest
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

[MelanieGiles]

Andy's advice is a good starting point, as the large creditor may well be more amenable to a reduced ongoing payment plan directly from yourself than you entering into an IVA where they might have to wait several months for their money. On the whole, creditors generally like their customers to contact them first when there is a debt problem. OK, they might not be able to help, but at least they are having the opportunity to.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[ray_a]

Jay

Obviously do keep in touch and let us know what your thoughts are about what you want to say to Nat west as it would look as though some further thought is required as to the best way in dealing with clearing the debt.

You should treat the situation as though you are going into an IVA calculating your income and expenditure. You should need to work out how much you can pay back to your creditors. It would help to present that to your creditors showing what you can afford.

What i would say is don't go and borrow any more and move away from the standard bank accounts offering overdrafts and credit cards.

You can get a basic bank account with people like the Co Op, halifax, Lloyds TSB, and there will be others. Go and get a front loaded Mastercard with Cash Plus or Tuxedo which only costs about £5 per month but does not allow you to get into debt.

Just a few things to try and help you along the way.

Take care and Good Luck

[neil277]

Hi Jaydecay

Your job or new job will not be affected, it will only be affected if your I.P will have to apply to the courts for an interim order, i work in a local Political party and hope to move forward after March 2008 to a better position.

If you are at home then your family cannot keep you, the right payments have to be put forward for your keep.

If you were living in digs you would not have much change out of 1200 pounds.

Regards.

Neil

[Adam Davies]

Hi
I'm not sure how an interim order will affect anyones job,perhaps Neil can explain further ?
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

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

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

[MelanieGiles]

I can confirm that an Interim Order has absolutely no effect on anyones employment.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[johnt]

I think given your circustances I would go directly to Natwest.

Write a letter explaining your position, your monthly outgoings, and work out a realistic surplus income, from this derive the amount you can afford to pay back to them over each month. It's in their interest to consider this. Don't juggle credit cards, try and pay of as much as you can on the highest interest cards first.

Because of increasing bankruptcy, many major banks are now willing to tailor your repayments over time, possibly give a number of months reduce payments etc. They would rather do this than go the IVA route were the debt will just get sold on.

Make sure you speak to Natwests dept mangement services. Natwest may well introduce you to Payplan, if they can't help, in which case since they have over 75% of the total dept owed by you, this may be a solution.

Take some time to consider your next step and get as much advice as you can from the proffessionals on this forum. Your at the right place for advice.

Chinease proverb: - 'I was angered, for I had no shoes, then I met a man who had no feet'