Total newbie with lots of questions

[Cdawson1]

Hi all and firstly apologies for what is probably a long rambly post with stupid questions.
I am at the point of admitting that carrying on as I am with nearly 36k debt and outgoings of almost 1k a month (and that being mostly interest) is ridiculous and I need to draw a line. I feel so ashamed to have got myself into such a mess but I know I need to do something now.
However I have lots of things I’m just not sure about even if you can only answer one of my queries I would be grateful.

I have a boyfriend it’s all quite new but if he were to move in during an IVA am I right in thinking that would increase my amount I have to pay as it would assume he is paying household expenses? He wouldn’t have to pay into my IVA though would he and his credit would be ok?

If we decided to get married would his credit be ok and only a financial connection to me if we take joint finance?

I currently rent my house and my dad is guarantor due to when I moved in my income was low, my income alone does not warrant a guarantor anymore but he has said he is happy to remain, should this mean I would be able to continue to rent (I’m more worried if my landlord sells and I have to move)?

Are there any bank accounts that are particularly good and can I have a debit card and DD’s, can I have a form of savings account? Also shall I open now or once IVA is underway?

What about mobile phone contracts/broadband (which I need for my job and sons homework) I don’t have a house phone? Will my providers cancel my contracts etc?

Lastly is there any firms in particular you advise I contact for help with my IVA

apologies again for such a long message

[Foggy]

If he moved in, yes, he would be expected to pay a fair share of expenses, which would increase your disposable income and, therefore, your IVA payment. Only one firm I know of would try to get him to contribute (and then, as far as I know, only if together at the IVA start -- don't know how they would accomodate him moving in part way through). His credit record would not be affected as long as you have no joint accounts (including utilities). Same with marriage.

Your rent will be ring-fenced in your allowances and your landlord will be none the wiser. However, if you move, it can be harder to rent another property, but not impossible.

A popular bank account is the co-op cashiminer, but most banks will provide a basic account. Avoid HSBS and First Direct. You can have a savings account, but will only be able to save modest amounts from your alowances. It is better to open accounts early on to facilitate the changeover of DD's etc, nearer the time.

Mobile phone contracts and broadband are allowed, as long as they are within agreed guidelines --- your potential IP will advise you.

I would go for smaller firms, where you will be treated as an individual. The large "IVA Factories" are soulless and impersonal. A look around the forum will give you some clues.

[Cdawson1]

Thanks so much foggy, any particular threads you can suggest for firms?

Also I’ve seen a lot of discussion with regards to people being accepted or not, what sort of things would mean somebody wasn’t accepted?

[Foggy]

Thanks so much foggy, any particular threads you can suggest for firms?

Also I’ve seen a lot of discussion with regards to people being accepted or not, what sort of things would mean somebody wasn’t accepted?

I am not allowed to suggest particular firms, but maybe a few forum members will share their experiences. Smaller firms include, McCambridge Duffy. Lisa Thomas from Nevilles and there is always the forum sponsors number on the top right. The "Factories" include Creditfix, Aperture and the charity firms Payplan and Stepchange.

Things that affect acceptance include the overall dividend (pence in the pound you can repay). Which creditors you have, how much you owe and, to a degree, how you got into debt (not in horrific detail, but red flags would be gambling, shopping addiction and things that might jeopardize the IVA.)

[Cdawson1]

Thank you

[abbiesmum2003]

Welcome to the forum.
This will be a lifesaver for you as everyone has been or is in the position you have found yourself.
It makes you feel not so 'alone' and definately wont make you feel ashamed.
It has been a safe haven for me for almost 6 years.
Foggy is awesome and knows so much.
Always give very sound advice. Lots of other posters either experts in the field or just 'normal' people who have lived through, or living in an IVA.
Read the mountain of posts on here as theres always someone who has needed the same advice as you.
Definately speak to a few companies and make sure your budget is right from the start as very difficult to alter. Be realistic about spending. You may not have it now but its an allowance (i forgot things like hairdressers, dentist, opticians, prescriptions)
Read the posts about things that crop up during iva such as ppi, equity (if own a home), windfalls, payrise etc.
We are almost finished ours. 5 years of living without credit. Raising 3 children.
48k debt, over £1000 a month in minimum payments. The IVA has opened our eyes and helped us budget, save, spend and regain control. Best thing weve done. Not easy but worth it for us.
Take your time to get the right proposal and budget. post if anything forum can help with.
All the best to you.

[kallis3]

Speak to several small companies before making a decision.

[Cdawson1]

Thanks so much for your replies, it’s nice to know you’re not alone.
As well as my wage I receive tax credits, does anybody know much about this? For example next year I’ll receive a pay rise but that will be countered by a reduction in my tax credits payments, this usually takes a period of about a month, when I receive a wage rise do I declare to IP straight away or do I wait for tax credits to amend my payments (I always declare to them if I have a change during the year to save issues at the end of the tax year) and then inform my IP although the monetary difference will be nil the amounts from different sources have changed?

I work in healthcare and have weekend and BH holiday commitments for which I get and enhanced rate so basically every other month I bring back slightly more than the last, again can I give a yearly average or have to call them every other month? I do sometimes do overtime which I understand is different and that I would declare as and when i do it.

I also pay regular childcare, some weeks in the year I pay less (half term etc) some weeks I pay more (6 week summer holidays) am I ok to do a yearly average or do i have to make contact each time things change?
I can’t imagine I’m the only one in this situation so keen to hear how other people manage it?

[Foggy]

Thanks so much for your replies, it’s nice to know you’re not alone.
As well as my wage I receive tax credits, does anybody know much about this? For example next year I’ll receive a pay rise but that will be countered by a reduction in my tax credits payments, this usually takes a period of about a month, when I receive a wage rise do I declare to IP straight away or do I wait for tax credits to amend my payments (I always declare to them if I have a change during the year to save issues at the end of the tax year) and then inform my IP although the monetary difference will be nil the amounts from different sources have changed?

I work in healthcare and have weekend and BH holiday commitments for which I get and enhanced rate so basically every other month I bring back slightly more than the last, again can I give a yearly average or have to call them every other month? I do sometimes do overtime which I understand is different and that I would declare as and when i do it.

I also pay regular childcare, some weeks in the year I pay less (half term etc) some weeks I pay more (6 week summer holidays) am I ok to do a yearly average or do i have to make contact each time things change?
I can’t imagine I’m the only one in this situation so keen to hear how other people manage it?

These things are dealt with differently by each IP and you will need to run it by your own. Again the firms that treat you as an individual will be more accomodating. For slightly fluctuating payments --- this could be covered by the usual extra income clauses, often called the 10% 50/50 rule: For overtime, bonus payments, occasional shift enhancements and the like, an amount equivalent to 10% of your basic income (as agreed with the IP) is disregarded and the amount over this, if any, is split 50/50 with the IVA and you keep half.

In my case, I simply sent in payslips every month, did the math and paid the extra. Some IP's will take the slips and do the math themselves. For childcare we averaged out the expense (which meant carefully accounting for it during the times it was less, so that the "surplus" from those times was sitting in the bank to cover the more expensive times). You get to be a wiz at budgetting !

Find a firm that you feel happy with, can communicate with and can speak to the IP directly if need be. Experience has shown that, with a firm where the IP is available to clients, the clients rarely need his or her direct intervention.

[abbiesmum2003]

I also work in the NHS.
Explain your saary to the IP. They may take your basic then treat anything over and above differently because its not guaranteed income.
Childcare wise we had to work out what we paid over the whole year and do average.
We pay our nursery a set value which is more than the usual term time payment but build up credit ready for the holidays. That will depend on your childcare though.
Failing that perhaps have to set some aside each term time month to then have the excess ready for holidays.
Its a challenge what with birthdays christmas etc but thats where you have to retrain yourself to budget and save for future events.
If you bank and earn more that will have to get declared too.
Ive gone 5 years not banking extra hours or working much unsocial hours because id have ended up working for next to nothing in return but I was able to do that given my role and an understanding manager.
This is where speaking to several
companies will help as some will help and understand and others will just milk you for every penny which sets you up to fail if income drops due to lack of unsocial shifts one month.

[Cdawson1]

Thanks, nice to have somebody who knows how the NHS works, although who knows when our antisocial hours may change! It’s really hard because the antisocial hours aren’t a choice!

I currently pay minimum into nhs pension too (9.2%) will this affect things, really don’t want to have to come out of my pension.

[Foggy]

If you have been paying into your pension for a while, and it is a compulsory deduction at the minimum level, they usually allow this to continue.

[Cdawson1]

I joined in 2007 for 2.5 years then was working outside the nhs and now back in for 4 years?

I have got together some local companies details and also contact stepchange (for comparison really) will be making contact tomorrow, feels like a massive step but also a relief that I am going to start sorting things!

[Foggy]

I joined in 2007 for 2.5 years then was working outside the nhs and now back in for 4 years?

I have got together some local companies details and also contact stepchange (for comparison really) will be making contact tomorrow, feels like a massive step but also a relief that I am going to start sorting things!

Should be OK on the pension front -- they only baulk if you are paying more than minimum and have just recently taken out a voluntary policy or started paying AVC's. Stepchange was one of the firms I contacted at the start --- one I didn't go with. It might have changed now, but, back then, they had a habit of "farming out" some applicants to other firms (which you had no control over). They were also somewhat stingy with allowances they would consider.

[Cdawson1]

Ah good to know, I looked on their website at their allowances and thought quite generous (apart from fuel, their maximum recommended amount wouldnt get me to work!) but maybe I’ll get a surprise looking at other companies.
There is 3 where I live so I’m going to contact all tomorrow will let update how I’ve got on