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my income is £1300 a month, and i pay out £720 in mortgage and other payments. i have a bank loan for £23000 aswell which equates to payments of £464 per month, which leaves me with disposable income of £116. I am due to leave work in approx 4 months for maternity leave and do not forsee how i will manage/cope as i will have not have my full income for approx 4 months and then i have a child to support. could you advise why i could not be considered for an IVA? (I own my own home)

HiJo.l
Yo have a few reasons as to why an IVA will not be suitable for you I,m afraid
1]Your disposible income is not high enough to fund an IVA,it needs to be a minimum of approx £250
2]You only seem to have one creditor,therefore there is no reason for an IP to be employed as your creditor would rather the money goes all to them.
How much equity do you have ?
You could look at a remortgage and settling your bank loan or you could negotiate directly with the bank and explain your situation.
Regards


Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

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http://www.iva.co.uk/andy_davie_profile.asp

Hello Jo

When you say Mortgage and other payments do you mean housekeeping clothing etc... ?!!! If you do then I think you are saying your problem is going to be that you won't be able to afford the repayments of your loan whilst on maternity. If this is the case then I would suggest you contact your unsecured lender and ask for the payments to be reduced whilst you are on maternity leave, making these payments up when you return to work.


If the £720 only includes the mortgage and secured loans etc...
£116 is not your disposable income as you have your priorities the wrong way around.

Your disposable income is your total income less your reasonable living costs and mortgage / rent.

As Andy says if you can afford to remortgage (if you have enough equity) a consolidation loan will suit you.

If not you can attempt to offer your disposable income to your unsecured lender and enter into an informal payment plan with them.




Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Hi all

I'm sat here reading this post thinking once again about how easy it seems to get credit. Surely somebody taking home £1300 per month and paying a mortgage shouldn't be able to get a loan paying £464 a month!!!

Nobody held a gun to our heads and forced us to take the credit offered but they do make it easy.

Dave

Absolutely agree Bear, someone working for the Lender should've seen that this credit proposition was not responsible.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

I take home roughly the same amount and I had a loan (Natwest) for £383 per month, and then I was allowed to take out another one (Egg) (I'd declared the first one and all my credit cards) which was £200+ per month. I know what you mean, they didn't make me take the money, but it was so easy. When I applied for the Egg loan they emailed me to say they needed to speak to me before they agreed the loan. I was away and didn't get the email, but when I checked my bank account the money was already in there!

Onwards and upwards!!!

View my blog at http://skippy13.blogs.iva.co.uk/

Hello All,

Bear, I would have to agree with you, I don’t know how someone like Jo who has over 55% of her income going to a mortgage payment can obtain further credit. Then not to mention the problems caused if interest rates were to rise! Crazy!



Hope this information is of use

Regards. IVA Experts

I would like to see lenders go into the same level of detail as IPs when going through what a borrowers disposable income truly is.

There needs to be an increased level of responsibility on both parts in order to reduce the level of unsustainable debt in this country.

I agree it's far too easy to get into this situation and can't understand why lenders continue to let people do this.

I am now in an IVA (from yesterday) but was offered a £15K loan six months ago when I was already over £100K in debt. It was accepted in principle all I would have needed to do was click the mouse and the money would be transferred to my account.

Absolutely ridiculous really. I know lenders say we should be responsible borrowers but surely they sould be equally as responsible?