Stressed newbie needing advice

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whyalwaysme

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Post by whyalwaysme » Sat May 11, 2013 7:56 am
Deep breath, here goes, not sure where to start.
My finances are up the creek and after trying everything possible to sort things out I have now come to the conclusion that I can't do it alone. I spent most of last weekend reading this forum and thank you all for your posts which have been invaluable for getting advice (this is all totally new to me).
I'm barely eating or sleeping at the moment and had to take a couple of emergency days off work I was so stressed I couldn't function.
I have been advised to go down IVA route and am due to speak to someone next week but I just wanted to ask a few questions - these are the things that are keeping me awake at night.
I totally understand that we will have to make severe cutbacks and will put aside for essentials (childrens clothes/shoes, school uniform, car repairs), but I wonder how generous the monthly allowance is for contingency/emergency - my partners family are abroad, granddad is very ill at the moment and I dread the day we get a call but can't go over because we don't have enough left to put aside each month.
One of my debts is a bank loan 17k - the start date was July 12 (albeit this was a top up loan, been constantly topping up for as long as I can remember). Does this put me at risk of the creditor refusing to accept proposal?
Are monthly allowances for phone/sky/mobiles based on actuals or what is classed as a reasonable amount - I am trying to reduce/negotiate all of them down but some (mobiles) are tied into contracts for around 12 months so I am unable to reduce these down just yet. Again I'm worried that this will eat into our 'emergency/contingency' if the allowance set is less than I am committed to paying out.
Just some background - I have around 35k unsecured debts (all family expenditure but in my name), I earn £25,000 and my partner earns around £12,000. We have a joint mortgage with little equity (tried to re-mortgage but couldn't as we were up to maximum 80% LTV already).
Thanks for listening
Ange
 
 

Nutkins

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Post by Nutkins » Sat May 11, 2013 9:11 am
Hi Ange and welcome to the forum! You have started the process to being debt free by recognising the problem! I put down what I actually spent on everything and sent it to the IP! They will then discuss the amounts with you if they feel that they are incorrect! How much disposable income do u think you will be able to pay towards the debt? I ask this as you would be wise to discuss your options with a few companies as they may differ in what they advise! :)
 
 

whyalwaysme

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Post by whyalwaysme » Sat May 11, 2013 9:45 am
Thanks nutkins, I think maximum £350 per month with careful budgeting that should leave enough to be able to put some aside for emergencies, although that would mean totally cutting out all non-essential spending, like kids activities, birthday treats and I can't bear to think about christmas. To be honest I don't know if that is a reasonable amount or over/under what would be acceptable.
I have taken the first steps to open a new Co-op Cashminder account and from next month my wage will go in there. I have only just fallen behind in card repayments (always minimum and only managed that by robbing Peter to pay Paul) so am dreading that payday as that is when my creditors will start to hound me. On a positive it will be the first month I can ever remember that I won't be paying most of my wage to credit cards, etc and I will be able to put some aside for some big spend items that are coming up soon - car service/mot/road tax, new school uniform (daughter starts secondary in September) travel pass for son (he starts 6th form in September).
The more I think about it the more I panic, but I'm trying to cling to any positives I can find at the moment.
 
 

Shining

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Post by Shining » Sat May 11, 2013 10:02 am
Hi and a very warm welcome to the forum. I am glad the forum has helped you so far. As Nutkins says you've recognised there is a problem and have begun your journey to debt freedom. Opening the bank idea is an excellent first step too.

My other advice is to take the advice of 2 or 3 professionals before proceeding. www.iva.com can offer a list of companies if you're unsure who to contact. Also if you want any personal recommendations you only have to ask on the forum.

An income and expenditure can be discussed in detail with a chosen IP so it's worth getting this right from the outset. If you were to decide an IVA was for you then you could (if you so wished) stop paying your creditors and by doing this would build up a contingency fund for when you enter the IVA.

The forum is a wealth of support and advice and do keep posting as there is generally someone around to help.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

orchid5

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Post by orchid5 » Sat May 11, 2013 10:08 am
Hi whyalwaysme, welcome to the forum, there will be lots of questions, ifs, ands and buts at this stage but once you have spoken to a few IVA providers, hopefully these questions and queries will be answered. I would put down everything that you spend, even down to pet insurance, dental insurance etc so whomever you choose to do your IVA with has a clear and concise picture of your finances and is able to draw up a fair and reasonable agreement with you. It should be affordable and allow you to live albeit it modestly. With regards to your creditors hopefully once they know you are going down the IVA route they won't hassle you, there are the ones who will try it on but ignore them. 6 years will pass very quickly and suddenly you will find yourself paying the last payment and being debt free, it isn't an easy route and there will have to be sacrifices along the way but the end result is worth it.

Good luck and best wishes, hope you get peace of mind soon. xx
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.

IVA COMPLETED August 2012, received Completion certificate 18.4.13.
 
 

Foggy

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Post by Foggy » Sat May 11, 2013 10:12 am
Hello and welcome. Everyone's circumstances differ, but I found the allowances to be pretty good. Visit the Beatmydebt website. It has a wealth of useful information, including a living expenses guide, which will give guideline figures. Remember, these ARE only a guide. The link Lesley gave is a great starting point to get in touch with a couple of firms and talk specific figures. ALWAYS a good idea to chat to a couple, as you do need to find a firm you are comfortable with (as with everything, some are the Rolls Royce and some the Hillman Imp).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

josu

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Post by josu » Sat May 11, 2013 10:16 am
Hi there, hope you are coping, its a hard time. I am on month 54 so nearly finished, our household income is similar to yours but debts are higher. From what you have said i would imagine an IVA is perfect for you. Read this forum carefully and you will get a very good idea of which company to use. Everything has to be worked out carefully, every penny you spend and it is hard but it has also taught me the value of money more than anything else ever could have. Also, you can request a payment break so dont worry about suddenly having to go abroad, that can be figured out with your IP. Even more reason to pick a good one.
 
 

Pennyless

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Post by Pennyless » Sat May 11, 2013 10:30 am
Hi Ange.....just to say welcome to the forum. You have some great advice in the previous posts. Your making steps in the right direction and although its easier said than done to say stop worrying, thats what you need to do.

Prepare a full list of your debts, incomings and outgoings and then speak to a couple of IVA Companies.......those you will speak to without exception (at least those I know of on this forum) are non-judgemental, experienced and will approach your situation in a professional and methodical manner.

From experience it is hard to admit you have a problem and even harder to make that first call to an IVA Company but believe me you wont regret it. My first call to Tina Shortland.....on a weekend if I remember lol.....lasted well over an hour and I must admit by the end of it I was not only emotionally drained but felt like a massive weight had been lifted off my shoulders.

My only regret in this process is that I delayed picking up the phone for so long.

Good luck.

Not sure if this link will work but this is my IVA journey to-date:

http://www.iva.co.uk/forum/topic.asp?wh ... 617#497608
Last edited by Pennyless on Sat May 11, 2013 10:35 am, edited 1 time in total.
I came into this world with nothing and still have most of it left!
 
 

whyalwaysme

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Post by whyalwaysme » Sat May 11, 2013 11:15 am
Thank you all so much for taking the time to reply. and pennyless I will have a read of your thread when I get a chance (just seen how many pages!).
It's good to share and learn from people who are in/have been in the same situation.
I have a call with Stepchange next week so should have a clearer picture then I hope.
I've done so many sums my head's hurting. When I top up all our expenditure (some of it fairly rough eg. repairs/maintenance and a lot of it trimmed, not included things which we will need to give up) , once I've taken my share of contribution towards household off my income it leaves around £200, now I'm panicking that isn't a realistic amount and I can't see where else I can cut back to increase that.
Thanks again for replies
 
 

Foggy

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Post by Foggy » Sat May 11, 2013 1:28 pm
Hi, not to rubbish StepChange in any way, they have many, many happy clients, however, the impression I get from posts here in the past is that they can be a little "stringent" with allowances, to maximise the return to the creditors ( who, after all, fund them). I would recommend chatting to a couple more firms, even if you end up going with StepChange after all.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

whyalwaysme

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Post by whyalwaysme » Sat May 11, 2013 3:15 pm
Thanks Foggy and I will take your advice on board. I'm keen to pay as much back as possible but at the same time need to make sure it is realistic otherwise will still struggle. Not talking about luxuries just general family expenditure and enough to put by for emergencies.
 
 

Hyperdrive

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Post by Hyperdrive » Sat May 11, 2013 3:37 pm
One thing to add to all the excellent advice above - open a new bank account with someone not a creditor. If you go the IVA route and your existing current account is with a creditor they could suspend your facility and grab any salary paid by BACS.
My business overdraft was pulled as well as personal banking as soon as they got a whiff but fortunately we`d opened a "clean" personal account.
 
 

Robbieboy

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Post by Robbieboy » Sat May 11, 2013 3:43 pm
Good luck, all I can add is I wish I had done it earlier - there will be some scarey times ahead but once you are accepted it is worth it. X
I know I am a good person, I just need to start believing it

See my blog - Life was a misery until now
 
 

baldy

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Post by baldy » Sat May 11, 2013 3:45 pm
Hi Ange, i big welcome from all of us to!

I know how you feel when you sit down and think about how your gonna pay everything, birthdays, xmas, car repairs etc.

Opening up your Co-OP account is a good start. We opened up one of them and they have been really good.

As soon as we made the decision to go with the IVA we stopped making ALL payments to unsecured creditors, ie: credit cards etc. That at first felt very strange to us because we had never ever missed any payments. By doing this enabled us to build up a little bit of money to help us when we got going with the budget.Just so we did not get stressed out with creditors constantly ringing we changed our phone number!!!! Thats up to you to decide though.

Getting the budget right in my view is paramount for the IVA to work for you, or you are always gonna be trying to keep your head above water. We have found that having a budget that covers EVERYTHING that you pay out for will be a good start, and with realistic amounts that you spend.
Its amazing when you sit down and work out everything you are paying out for.

Actually put down what you spend and then when you decide what company your going to deal with then you need to work with them to sort out the budget figures, dont just agree with figures you really feel you cannot live within.

We have found you some times can save a little bit here and there during the year for xmas and birthdaays etc. You just need to plan alot further ahead!!!!

We did have a major bill to pay out a while ago for the wifes clutch on her car, but we phoned the IVA company and straight away they said have a payment break of 1 month which was all we needed to pay for the clutch to be done.

So like all the other posters above have said you do need to feel you can work with the company your going to go with.As always if you ever need to ask a question about anything with the IVA the people on this site are amazing and so so helpfull.

Good luck with your journey. We are with Step change!!
Crap name i think! Prefer cccs!

Like the others have said its very good advice to talk to a few companys, and maybe by sifting through the forum you might get a feeling of what companys are helfull and those who are not!!![:D]

Baldy & Family
 
 

Michael Peoples

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Post by Michael Peoples » Sat May 11, 2013 3:55 pm
Hi Ange. Speak to StepChange by all means but get another opinion from an independent firm. They have only one IP and are paid by the banks so it is worth speaking to someone else. They also only have one IP for tens of thousands of clients whereas firms like us hav 4-5 IPs and do 60-80 IVAs per month.

Please get another opinion and do not even wait until your appointment as most firms are happy for your business and do not leave you hanging like a beggar waiting for them to grace you with some advice.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
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