I'm completely new to this board so Hi. Been looking and so much advice. Thanks for it all.
I do have some questions but first a bit of background.
Am a homeowner in a shared equity (similar to homeboy and help to buy but just with developer not government) and have £38k unsecured debt with loans, credit cards, catalogues.
Some extenuating circumstances including abuse, depression, family illness meaning I support my dad in care of mother but mainly me being an idiot despite all this.
So far I haven't missed any payments at all. Robbing Peter to pay Paul in all my credit cards and the loans being taken from my account with no issues but I have just £500 on one last credit card and so knew situation was coming to head. I asked my bank for help ages ago and they just encouraged me to take more loans and cards. Halifax refused a mortgage advance too so having spoken with very supportive IFA and her referring me to another who is a debt specialist looks like IVA is my option.
My first of no doubt many questions are:
I've been advised to set up new bank account as my bank account is with Barclays with whom I also have loan and credit card. Nationwide being the ones and I've done this today online but it did first ask the question whether I was in IVA ...after speaking with Norman, the debt specialist, he said it was fine to put no as Im not in IVA yet and I've not asked for cheque book or overdraft facility and the flex account only comes with debit card. Is this correct and ok? Going to branch tomorrow to finalise set up so i can let work know.
The next question is I am due to have a loan amount taken by direct debit on Tuesday and a credit card direct debit on Monday...should I cancel these if I can? Norman said yes but has given me weekend to think about IVA option and will refer me to insolvency practitioners on Monday if I decide yes to go ahead.
My creditors will be quite shocked I think as I have continued to make payments throughout albeit only minimum payments and sometimes a couple of days after due date but only one or two months at most would've passed before I'd have no credit available to make any more payments for all of my credit so it was only a matter of time. . Is it best to let the payments fail now? I have other payments due though not by direct debit by end of month but will not make those as should have started process by then.
Sorry if these are daft muddled questions and I'll no doubt have loads more. Just feel apprehensive and scared of the short term future though I know this is most sensible option.
It all sounds very straightforward and an IVA does sound like correct advice. There is no point paying creditors any more as you cannot afford it and even if the IVA is not the correct advice you would still stop paying in bankruptcy or debt management.
The account with Nationwide is fine and you have told no lies so transfer your main direct debits to them and cancel those for creditors.
Finally,make sure and check out which IP firm you are being referred to as the standards vary across the industry. If you do not feel comfortable contact other firms until you are happy and do not pay up front fees.
Great news re the natuonwide account too. Re my current money I have to spend...this is either from my overdraft with Barclays or cash advances with credit card.. Which is lesser of 2 evils? I get paid end of month so obviously not going to spend money from either option after this or before if IVA process is started then? And I won't be spending money on silly things. Forgotten what it's like to do so.
Norman did say the name of the company but forgotten its name...think he said they were in wilmslow and he mentioned initials. Having googled could be HBG but not sure.
Personally I would think using the overdraft is okay as you would have just paid that off and it is existing credit. The cash advances from the credit card would be new and additional credit but ultimately you have to live.
Good luck with the IP firm but make sure and pay nothing up front and hopefully the IVA goes through easily enough.
Thanks Michael. Hope the IP firm are ok. Bit concerned as nothing on the internet about them at all or here but I guess there can't be stuff about everyone and they may be a smaller firm and at least if there's no bad information then it should mean that they're not terrible.
Re the money I have to spend and whether its the overdraft or credit card...as I'm only confirming the amounts outstanding to the IP firm next week when I've confirmed to Norman to proceed, would this still be new credit and I'm regularly going up or very close to the overdraft limit of £500 on my bank account and don't know short of a lottery win when I could've paid that off.
The side issue with the credit card is that they are one of the creditors who I'm due to have a payment taken from my account on Monday/Tuesday so all the more reason not to spend if I've been able to cancel the direct debits in time for them not to go through. Is that correct?
Thanks for all your help and sorry for the questions...I just get nervous about all that's happening and probably start overthinking!
Your thinking is spot on. If you make the direct debit to the card then there is no harm in using it again for basic living costs. The overdraft will be £500 as it is every month but only because you took out your own wages to pay bills.
There is a big difference between what you are doing and running up new credit.
There is an insolvency company in Wilmslow called NTF Financial Solutions so perhaps that might be the initials you were trying to remember. Hopefully they will be able to sort everything out for you.
Ah ok, that's fine. Thank you again. I don't think i'll be in time to cancel the capital one payment but have tried. On the other hand, have cancelled creation loan payment which frees up a little money in the overdraft so should be ok to pay for minimal things with one or both for time being until I get paid or this starts up.
Yes, that's the name. Hope they're ok. If not, you've been so helpful and have seen other posts on here about other companies who've been very helpful too so may be in touch.
If Nationwide get a whiff of your IVA, it's possible they will withdraw your flex account and switch it to a cashcard account. There's nothing wrong with cash card account(I had one for the full six years and it served me well) It's a VISA debit (just can't use it abroad) and all your usual DD, online, telephone etc support.
The flex account will let you have an overdraft after six months, best not be tempted (Life can get very tight in an IVA)I think your credit checked if you apply!
So try and leave your I&E in your favour, some don't and struggle terribly
Thank you. Ah, thought that was what I was applying for, didn't realise there was another account. Thanks sponge. Should I mention this when I go into branch tomorrow instead and just say I was after a basic bank account or would you stick with the flex account?
Well not knowing this forum at the time I didn't know any better and told Nationwide what the score was and the manager said a flat no to a flex account didn't even wait for the computer to say no, but a cash card would do the job and it did. Actually looking at their website the cash card can be used abroad, just not for cash withdrawals.
If you look on their website current accounts, full details, cash card, pops up on the top bar,far right hand side.
I mention it as when my IVA finished (that's the full six years) My cash card account was closed
by Nationwide and switched to a Flex account, so the computer did know somewhere along the line
As for what you choose that's really for you to decide! As for which firm use talking to one or two to get a balance on it all of course, but giving the one above might be a rather good idea
Thanks sponge. Much appreciated. Well done on the IVA finishing too.
Might mention that I was only after a basic account not the flex account and see what they say. Pleasantly surprised that the cash card isn't just for atm's but for use as a debit card too.
Going to go with NTF initially as Norman suggested and see what they're like.
Hi Blueskies. Regarding going with NTF "initially" .... once you have signed up with them and your IVA has started you will be stuck with them. This is why it is SO important to be happy with your choice (YOUR choice, not Norman's)from the start.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks Foggy. Sorry I was a bit unclear. I'll speak to them first and depending on how confident I am when I speak to them will either proceed or come back on here and take a look at the other possibilities.
Got generally a good instinct for people and organisations so hopefully this'll work this time.
Thank you. You and everybody else have been so helpful today. Still nervous and dreading the time when creditors come to know what I'm planning to do as got a lot of pride but reading your replies and all the other posts makes me feel not quite so alone.
Forgot to say in my first post too and in a way I need to remind myself of this in case I have to provide an explanation to creditors for the creditors meeting but my salary was reduced in 2013 by £4k when I lost my previous job and pay protection ended. I beat myself up a lot about all this but I guess it'd be hard for anyone. Still of course no one else to blame but myself.
