Hi, I've found this forum through a quick Google search and hoping to get some advice. After months and years of managing to service debt, the spiral has finally become too tight and for the first time ever I've been late with a payment.
It's forced me to sit down and look at things which - if I'm honest - I'd had my head in the sand about. My debt breaks down as follows:
I have arrears on my service and maintenance for my flat but the company have been great about holding off on it. It's £3,500 and does need paying as more of a priority than I've made it.
I'm in full-time employment and on a salary of £33k/yr.
The mortgage part of the Northern Rock 'Together' mortgage is £570 a month. I've been hived off to NR Asset Management and as such can't remortgage with them. I'm at the mercy of their SVR which is 4.79% at the moment.
I'd negotiated very low life-of-balance rates with all cards except MBNA who've just hiked their minimum repayments. This is what's knocked me over the edge. Truth be known, it's probably been a long time coming.
I'm starting to worry and having sleepless nights about how to progress and get myself sorted out. Servicing the debt is what's crippling me financially as I am paying out around £900 a month just on debts.
Would an IVA be a sensible option? I'm aware that it's no 'quick-fix' and that a number of things will be impacted by it.
I'd really appreciate some advice from people who know far more than I do.
Thank you for reading.
Last edited by gbenno on Tue May 03, 2011 12:20 pm, edited 1 time in total.
You've come to the right place for some excellent advice and support.
It sounds as though an IVA could be a solution for you but I'd speak to a professional.
Visit www.iva.com for a list of companies and reviews and give one or two a ring. The advice is free and impartial.
The forum is here for advice and support as well.
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 and welcome. An IVA might well be a good option. Might I suggest you pop on over to www.iva.com and have a look at the companies listed there (with reviews). Ring up a couple for some free, impartial and specific advice.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi Gebeeno - welcome to the forum - well done! Do be ashamed /afraid we have all been there - you have done the hardest/bravest thing you can do - face up to the debt problem and dealing with it.
Speak to few companies (links on here) about your own situation, take time to find the option for you. Use the forum for questions.
Hi gbenno - welcome to the forum - lets hope those sleepless nights soon come to an end.
An IVa may be an option for you - it depends on what your monthly disposable income turns out to be. Although you have been cripling yourself financially to pay £900 a month - it does not mean anything less will be possible - you may find you only actually have £100 disposable income once all living costs have been taken away or you may find you have much more. Any of the experts availble can help you calculate this, taking into account every small cost for things like haircuts etc and then by looking at your overall situation and discussing the other options too you will then have a good idea of you way forward out of this mess. There will be a way forward I promise you - there always is.
There are highly recommended companies on here and you can read reviews at www.iva.com. Its good to speak to 2 or 3 to compare what you are told and to find the right one that you feel confident with.
Regards,
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com
If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
You have done everything correctly so far so get the free advice available.
Plasticdaft. The IP would need to see the copy of the lease and any terms and conditions of the agreement. It may be that failure to pay this money in full could lead to forfeiture of the lease which is obviously not what the client wants. It may be best to allow this to be repaid during the IVA by making a monthly allowance for the arrears.
Just for reassurance gbenno-northern rock had 50% of our debt and were the major player in our iva being accepted-(22,000 from 43,000 debt)they were one of the few that bothered to vote and said yes-
they asked for a couple of modifications such as extending the original iva term from 5 to 6 years.
I have noticed a few posts on here where northern rock have requested this but we had a good 20+ years left on their loan so obviously we werent going to argue with them.
Good luck-do your research and find a reputable company-then you can start looking forward to the light at the end of the tunnel.
full and final accepted January 2015
iva agreed; August 2010
iva would have completed; August 2017
extra year thank's to NRAM
Hi folks, thanks for the input today. I've spoken with a counsellor at the CCCS and they've suggested an IVA would be an appropriate route given the level of debt and the timeframe.
I know that there are a number of companies who offer IVA solutions, including CCCS, but I need to look into the pros and cons of various IPs.
I will have a look on IVA.com as suggested, but I don't really know what to look for in a company that arranges IVAs. What are the important points to consider? The CCCS folks will obviously look to get me to use them, but I'd imagine that there are important considerations.
What should I be looking for when comparing?
In response to an earlier question, the maintenance owing on the flat should be being treated as a higher priority according to the CCCS. Failure to meet these payments means that they could place a charge against the property. The company that manages the building have been very understanding, but obviously I need to start making inroads into that debt too - and with more urgency than I had previously considered necessary.
The CCCS have factored in the normal maintenance (c. £100/mo) and an additional amount to start bringing the arrears down (they've suggested £50/mo). This will mean that the maintenance costs no longer continue to mount and I will be repaying them around £600/year on top. This would clear the £3,000 arrears over 5 years or so (there are interest charges for late payment). I have to hope that the maintenance company will accept this. This amount would be considered a 'priority payment' ahead of any unsecured debt and would not form part of the IVA according to the CCCS.
One thing the CCCS have advised me to do is open a bank account with a bank I have no debt with, so I need to do some investigating on that front. Thanks for all the replies so far; I must admit I have a terrible gnawing, gurgling feeling in my stomach that I'm stepping off a cliff into the unknown.
Last edited by gbenno on Tue May 03, 2011 4:58 pm, edited 1 time in total.
AS the CCCs have suggested - open the Bank account straight away (no overdraft) at this early stage you show still have good options - be careful that your Creditors are NOT part of a big Group(ie LLoyds /halifax/BofS). Move your wages D/d etc Look a the links on here - get a company that set you at ease and you get a good gut reaction and has a good network of communication. Take time read and re read proposals. Make sure you are happy with them, dont feel pressurised into making decisions
Last edited by ginger3232 on Tue May 03, 2011 5:06 pm, edited 1 time in total.
The advice you have received so far is fine although I would suggest it is vital to agree a figure with the maintenance company before drafting the proposals. An income and expenditure account should suffice but perhaps five years is too long for them to wait.
Make sure whichever firm you go with that their IPs are approachable and ask how many IPs they have in relation to the number of IVAs that they do. This is very important because five years is a long time and one of the biggest complaints on this Forum is IPs that 'do not talk to clients'. Make sure you go with a firm that allows you to speak to the IP and not just passed from one case manager to another. Good luck with the proposal.
You only have to look on here to read of companies who come highly recommended by posters on here. You could do worse than contact one of those. They are always around on the forum as well as on the end of a phone.
As stated, you do need to change your bank account if it is one of your creditors - the Co-op come highly recommended by posters.
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 have a friend who has recommended Nationwide. I've just completed the process of applying for an account with them and will see whether it's accepted. As far as I can see, they're not linked with any other banking group.
I've applied for a basic account with no overdraft. I won't move my banking to them just yet though. I don't want to get ahead of myself.
Thank you to Michael Peoples for the good point about agreeing a repayment schedule with the maintenance company first, that's good advice. I will ensure that they are on board with the agreement, and whether I might need to increase what I pay them before taking any further steps with an IVA.
I will sit and have a good read through all the information I've been given by you kind folks, as well as looking at some of the IPs here.
<gulp!>
Last edited by gbenno on Tue May 03, 2011 5:32 pm, edited 1 time in total.
gbenno - at this stage there is no reason not to apply for a full account(cheques etc) -if you need it, do it at this stage. rather than leave it - you DONT HAVE TO HAVE a basic account. As long as there is no overdraft
I have an account with Nationwide but not sure what they are like now. The Co-op are very IVA friendly. If you are going for an IVA then you need to move the account as as soon as possible - your creditors can take money from your account to offset against your debts if you fail to make your payments.
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
