Does this budget from Step Change sound about right ?

[Warren.84]

Hi there, i've just gone through my budget etc with the charity step change. They've recommended an IVA as the best option and i think they're right. The issue i have is that i fully acknowledge the debt is my fault but i feel as though i won't have money to do anything. The outline figures i have are a debt of £46000 and i'd be paying back £391 on a salary of £1524. I know that each case is individual but does this seem about right?

[Michael Peoples]

It sounds like a lot and it may be worth getting a second opinion from the independent professional sector. Bear in mind that Stepchange is funded by the banks so worth trying another firm to see if you can get the payments reduced to a more manageable level.

[Foggy]

As you say, every case is different. I had an income of 2,000, debt of £53,000 and paid £460 per month. It all boils down to what you have left after meeting agreed expenses. Without wishing to sound harsh, you are not supposed to be left with spare cash, except maybe an agreed £20 emergency fund. All other expenses are catered for, such as haircuts, mobile phones, smoking, running the car etc.

I agree with Michael and suggest you chat with another couple of firms, who might be a little more flexible with the figures, as too tight a budget at the outset is asking for trouble further down the line.

[baldy]

Hi Warren welcome to the forum.

We have been with "Step Change" now getting into our last few years.

Budget wise they can be a bit tight with it unless you can prove you need x amount more to spend like on the fuel etc.

They have been pretty fair with us I guess, you probley will find some companys willing to let you pay less but try and make sure you don't end with some of the companys some poor people have ended up with and having nothing but hassle.

Ther are some really good companys out there, I know Melenie comes highly recomended.

You really do need to make sure that the budget is spot on to start with or you wont stand a chance!!!!

Will also be intresting to see if they change the equity part of the IVA.
I understand how you feel about its your debt, and you want to pay back as much as you can, and yeah they are giving you a life line BUT make sure you are happy with all the figures and terms etc before you sign!

Best of luck

Baldy

[ivamess]

We ended up actually better off in our IVA with Melanie than we were before the IVA. Reason? Interest rates and payments were so high that we ended up robbing Peter to pay Paul and having to use cards even more. I don't feel that we don't have enough to live on, we make more use of what money we have and the relief of no more letters and demands is worth every penny of working harder to make the money go further. Whilst we don't have luxuries, we are comfortable enough and that is the main thing. I would recommend Melanie to anyone who asked. Stepchange pushed us into a DMP that would have lasted 23+ years.

[UpToMyNeckInIt]

Hi Warren,

You can check your provisional allowances against the Stepchange Budget Guidelines Report here.

https://docs.google.com/file/d/0B7LabJy ... edit?pli=1

(Sorry, have not yet been able to get hold of the latest version that came out in October 2013, but the figures only differ by a couple of quid here and there).

It is well worth a read, as it covers every form of expenditure, right the way down to allowances for hairdressing, kid's school dinners, meals at work, even hobbies etc.

If you are careful to correctly record your income and expenditure, your IVA payment should be set at quite an affordable level.

Well worth a second or third opinion from another company or two, especially as there is a fair chance that will likely refer your IVA to Grant Thornton anyway. (Just google 'Grant Thornton Complaints' or have a look at some of the other forum posts here to see why that may not be in your best interests).

Good luck.

[nomoneymoproblems]

Thanks to everyone that has responded so far didn't expect it to happen so quickly. Some really helpful points. Does anyone know of any recommended IVA companies that don't charge upfront fees as we don't currently have 2 pennies to rub together.

[nomoneymoproblems]

Sorry this warren.84 but have changed username

[Foggy]

Most don't charge upfront fees and I would suggest you chat to a couple to see who you feel comfortable with.

Melanie Giles and McCambridge Duffy come highly recommended.

[relieved33]

The companies Foggy has mentioned would definitely be worth a call. We used Cleardebt and have found the to be great throughout and I would recommend them to anyone.

There are several issues currently with completions, ppi and equity being two. I think that as these issues are now known that things should be better for IVAs from now. Make sure that you discuss any doubts you have with who you call, 5 years is a long time to be with a company. I do think that you will get a feeling and be comfortable with a company, trust your instincts.

[urbanfox]

If a company charges you an upfront fee then they are most likely going to pass you over to another company anyway so best to stay away from that. My best piece of advice would be to read every tiny detail before you sign anything and if you don't fully understand it then question it - although i read mine and thought i understood it, i didn't and i wish i had found this forum before setting up an IVA as there is so much experience and useful advice. I have a friend who is about to enter an IVA and i have offered to sit with her and go through her proposal with her before she signs it as i hope to help her avoid any pitfalls that i encountered and point out the things to her that she should question - if you know anyone who has ever been through an IVA then please talk to them, i know it is horrible to admit that you got yourself into a financial pickle but good friends never judge and they will support you - just like this forum

[Michael Peoples]

Most firms do not ask for money up front and the first payment should only be made on approval of the IVA. Some firms [ourselves included] ask for the first payment to be made by the time of the meeting of creditors but in the unlikely event of a rejection the money is completely refunded.

If however a client does not have the money until the end of the month for example we would never hold a case up and I am sure other firms are the same.

[Hair_bobbles]

We were with mccambridge Duffy. & had a fair budget with them. I would say we were able to haggle a bit - but then we do have 4 kids & costs for us did change a bit.
They are very professional & get things done & never put any pressure on us. We had no hold ups over completion certificates either.
I would get a good overall view of at least a couple of iva companies. Before you do anything else. Your in an IVA for a long time & it's not a pic nic so you need to make sure you choose the right one for you. IVA.COM iris a good place to start to read reviews. & I think judging by lots of positive comments from other forum members - Melanie giles company comes highly recommended .

Good luck

[Michael Peoples]

Thank you Hairbobbles for your kind comments and glad we were able to help. The budget is vital as affordability is key and while there are guidelines set it is still important to remember that each case is individual and treat it accordingly.

[nomoneymoproblems]

Thanks for the flood of useful information and opinions. I've contacted a few different companies and will see how it all plays out. As you've all been so helpful I have another 1 for you. Me and my partner are desperate to have a baby as we're both approaching 30, do companies allow for this in your plan or can you take breaks from your IVA for any period? I only ask as I have heard mixed things whilst browsing other sources. Any advise would be greatly appreciated.