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Posted: Wed Jul 20, 2011 9:44 pm
by Gavin.12
i earn 18000 a year and owe 23000 on credit cards and loans. Would an IVA apply to me and how much would i have to pay each month?
Posted: Wed Jul 20, 2011 9:49 pm
by kazzafunk
Hi Gavin - welcome to the forum.
An IVA may be the right move for you. Are you struggling to pay the bills? If you look on
www.iva.com and contact 2 or 3 of the companies listed on there for some free impartial advice they will be able to advise on your best move.
What you pay depends on your outgoings. If you look on
www.beatmydebt.com there is an expenses guide - but it is just a guide as to what you can possibly claim as an allowable expense. Take that away from your income and that would probably be your IVA payment.
If you own your own home you may be expected to try to release equity in the final year. If not possible, you may have to make a further 12 months payments.
Posted: Wed Jul 20, 2011 9:50 pm
by kallis3
Hi and welcome to the forum.
You need to speak to a professional - either one of the experts who post on here or visit
www.iva.com and give one or two a ring.
How much you pay will be dependent on your disposable income per month after your normal bills have been paid.
Posted: Wed Jul 20, 2011 9:53 pm
by 4kidsnocash
What the ladies have just said, and welcome to the forum.
Posted: Wed Jul 20, 2011 9:59 pm
by Chopper
Hi Gavin,
I would always say try everything else before an IVA. Have you spoken to your bank manager? Make an appointment with them, sit down and explain you want to get it sorted before it gets out of hand. They can only say no. I wish I had done that, instead I reached £69K then it was too late.
A consolidation loan for 18k would only cost you around £380 (maybe around £450 with PPI) a month for 5 years and you would keep your credit score good and avoid all the negative things that come with an IVA.
Chopper
Posted: Wed Jul 20, 2011 10:02 pm
by Chopper
Just make sure that if you do consolidate YOU CUT UP YOUR CARDS and close the other accounts
Posted: Wed Jul 20, 2011 10:24 pm
by MelanieGiles
That is really good advice from Chopper. I often see clients in my practice who think that their problems are far worse than they actually are, and with a bit of support from creditors debts can be restructured to suit changed circumstances. However if you feel that this is not possible, professional advice can also be reassuring and sensible.