Dear all
i am having debt over 50k i managed to pay so far from this months i missed one or two, i spoke to a debt management co. they have taken all details of my creditors and income and expenditure and i have received the letter form them to sign so that they can speak to my creditors, but i forgot couple of my friends debt and i used my credit cards to pay them off, i still can use some credit cards because i am making the payments and i have quite a lot of credit limit, is there any problem using them while i am plannimg for my IVA or DMP??
i would appreciate for your advice
Yes - there is a real problem in you using credit cards once you have recognised that you are in financial difficulty - that being the amounts you are continuing to borrow may not eventually be paid off, and you are deliberately preferring your friends over the other creditors. This will be of concern to the company who is currently advising you in the meantime.
I stopped using my credit cards as soon as I knew I was in trouble and started the whole iva process, I still had a large sum that I could have used to take me up to my credit limits but to me that would not have been right as I knew I would not be able to pay it back. I genuinely wanted to return as much money as possible to my creditors and would not have borrowed knowing I had no means of paying it back.
You have obviously realised you need help managing your debts and I think it very unwise and unfair to tun up any more on credit cards,
Good Luck
Emma
Be positive & look after yourself, there are more important things in life than debts....
thank you for your advice,i was not using credit cards for more than a year..., in my last post, i mentioned my friends debt but what i mean to say is my genuine debt to my friends, which i must pay.so i used my credit cards.
Your friends are technically creditors though and it will be seen that because you used your cards to pay them, you have prefered them over paying your other creditors.
What happens if you have used all of your salary to meet your debt requirements and then have to use your cards and overdraft to get you through to next payday?
It was only after we had paid all our debts and had no money left that we started to look for a solution but we have used our cards for essentials i.e petrol and food??
We have not yet missed any payments but will next month, will be cutting up all our cards and living off our wages.
is this ok ???
7 down 53 to go
The pedal uphill may be hard but remember once you reach the top you can take your feet off and freewheel all the way down!!!
You do need to start living within a budget that does not rely upon the use of credit - especially as you have now instructed an insolvency practitioner to assist you in formulating proposals to your creditors. Once your salaries are paid at the end of the month, it is time to start living to that budget, so that you can prove to yourselves and the IP you have chosen to represent you that you can do it!
Hi
Once you have decided on a DMP or IVA you should stop paying all creditors,this will allow you enough money to live on without having to use the cards.
Regards
This is exactly what we are planning from the end of the month.
We only found out about IVA's early in October after we had paid out our money on bills, we had never considered them before we found this website and had looked at an even bigger, even longer consolidation.
Unfortunately prior to speaking to a reputable IP we spoke to someone from one of the large IVA call centres and were given some really duff advice. I asked at this point if we could continue to use our cards etc... as I was worried about supporting my family until I was next paid.(all wages were paid out on payday) We were advised that our balances would not be verified at that point and told not to worry about our final balances. Luckily because of the moral issue we have only used for essentials.
After reading that post late last night I felt sick, we have just enough to manage on for the rest of the month so won't be using our cards again.
I can't sleep for worrying we might have unintentionally messed things up for an IVA.
7 down 53 to go
The pedal uphill may be hard but remember once you reach the top you can take your feet off and freewheel all the way down!!!
Hi
You have nothing to worry about,it will take about two months to set up your IVA so after your next payday just cut up your cards and make no more payments to your unsecured creditors
Regards
It is normal to worry about everything during the iva process, if you are worried about anything just post it on here and someone will offer advice I am sure.
I was petrified when I no longer had my credit cards in my purse and didn't know how I was going to manage, but when you stop paying creditors you will have more than enough money to get yourself by for the month.
Good luck, I am nearly a year into my iva and it has flown by and really allowed me to get on with my life and start living again. When I think back to this time last year I was a wreck, it can seem like a really tough process but I can assure you it is well worth it,
as I say good luck
Emma x
Be positive & look after yourself, there are more important things in life than debts....
