Token Payments?????
Hi Could anyone please give me a bit of advice about token payments. Our IVA is currently being drafted and as advised i cancelled all my direct debits. I have been ringing creditors giving token payments as and when the most recent bill has arrived, we were up to date with all payments (somehow) so this has gone down quite well with the creditors. I now have a problem as my husband (who is self employed) is waiting on a check and i cant spend any money for a few weeks or the mortgage and car (on hp) wont get paid. Will it look bad for me if i have paid some creditors but not others, the payments I have made have all been small???
Also we have the dreaded NR together mortgage and last month i paid the full payment (secured and unsecured) as it is all under the one direct debit. Should i now inform NR about the IVA process and not pay the unsecured part, payment is due on the first? Thanks as always for all the fab advice and support!
Hi Beansontoast
This is something I see alot of and my advice on this is to ensure all your priority debts are always taken care of first along with everyday living expenses. What’s left over can be divided out to each of your unsecured creditors but only if you can afford it. With regards the NR mortgage / unsecured loan, i would suggest speaking to your IP about this.
It is possible that if you pay N Rock the secured amount only, they will apportion it between the secured and unsecured or even allocate it first to the unsecured. This would put your mortgage into arrears which would then have to be addressed.
Hopefully your IVA will be in place before the next N Rock payment is due but if not as Declan says speak to your IP.
We tend to advise our clients to maintain the full payments to Northern Rock until the IVA is in place, as they tend to allocate the mortgage payment in proportion over the two accounts which can leave mortgage arrears are Michael has also experienced by the look of things.
I don't think that anyone would criticise you for getting a couple of payments out of sync, but try not to deliberately let one creditor benefit unduly whilst others are suffering.
