Hey landt3,
Thanks for sharing, generally the only reason anyone knows about this forum is because they work in the industry or have made some poor financial choices along the way (myself included) or had the poorest run of luck, smashed mirrors etc etc...
For me I can relate to your situation because I rent, I don't overly need credit (now, having been in an IVA) but I know if my landlord decided he wanted to sell the place I would not pass a credit check with a agency trying to find somewhere to live, I would probably have to pay 6-12 months rent in advance, and that's only if the landlord doesn't think I'm a risk because I have a poor/terrible credit rating having been in an IVA and stuck with that stamp for 6 years.
If you went into an IVA tomorrow and the landlord gave you notice the following day would you be able to raise capital to pay rent in advance for your young family to live somewhere having to pay e.g. 6 months rent in advance (if you're a private tenant), what would be more stressful,that situation or your current financial one ? (You may not be a private tenant, I don't know about other tenant scheme as I have never been in any other type, if they require credit checks or not).
You say you have good credit, are you maxed out now as in you're credit rating is not good enough or not enough headroom that you can't get a 0% balance transfer on existing cards you're paying, or balance transfer at 0% that will credit funds to a current account with e.g. A 4% fee for several months at zero percent (link from moneysavingexpert.com)
http://m.virginmoney.com/virgin/credit- ... 0001-00629
Example your overdraft is £2000 you get a card with £3000 limit and do a 0% £2000 balance transfer to your bank account, this clears the overdraft (you now cancel your overdraft facility or make it £50 only for emergencies). Your crdit card balance is £2000 + 4% £2080 minimum monthly repayment 1% or £25, but you want to clear it all in the 40 month period, say 35 to be safe, that's £60 a month, at the end of the period no overdraft and no black credit marks, then call up and cancel account. Key things never miss a payment and never spend on it. If you can't get it maybe your other half can ?
With that if your credit rating will allow it you might be able to make a big enough dent in your overdraft and you can repay it at 0% interest which leaves more money to service the actual debt rather than interest and fees.
I'm not a financial whiz or qualified to give advice, but it would be a route I took before putting a black mark on your good credit rating (once the balance transfer was done I would cut the card up too - after setting up a login lol). You just need to be disciplined and not use the card for anything else and always pay monthly payment with a view to clearing the balance in the 0% period. Moneysaving expert has some good tools to give you pre-eligibility checks that don't actually hit your credit file and to let you know chances of successful application.
If that's an option, I would also try the bank, not for a loan, but to see if given your circumstances they might consider waiving overdraft charges as you are new parents, even if only for 6 months.
Both of the above things won't affect your credit file with a missed payment or default mark etc,
Personally, after that, then I think a DMP may be the way forward, I tried to do one myself with template letters but the banks/card companies came back trying to haggle for a bigger pie me of the pie, I then called stepchange instead and they did it for me and the banks accepted all their figures, have a look at website for their income and expenditure form to fill in so of you do call them you have all the info to hand, but remember as soon as you do this you are breaking the terms of any agreements you have with financial providers and debts you have and your credit score starts to take a hit.
I know this sounds so silly, but it wasn't until I was in my IVA I started doing it but utilities I had with several companies, gas, electric mobiles, internet,many etc, are you on the latest best deals,that phone call of I'm leaving can save you good money, I'd wager at least £100 a month, I have just gone through the exercise and we are now £140 better off a month, gas and electric was the big one, the price of oil and natural gas is low......tie in for a year again check out a comparison site, we halved our gas and electric direct debit.
New baby....nappies. Oh my lord, save a fortune and buy them at aldi, we were using pampers, the price difference is extreme and just as good a product, I know it all sounds so tight, but what a saving the amount of nappies we were going though..... And speaking of aldi, reckon we have halved out food hopping bill going there now and the quality of stuff is great, you may have done all of that already.
Well that's my personal thoughts, good luck, and take that cold calling firms number and confine it to trash items and cancel the telephone interview/meeting with them (IMHO) and read a shed load more about IVA's before proceeding any further with them (personal opinion), within 6 years your
Ives could and probably will change considerably, you might want to buy a new family home, get a mortgage, move for kids schooling, all of which would be very hard/near impossible with an IVA and if you hit a promotion, yeah mor disposable income, no, not so, it is assigned to the IVA.... Its not the easy out that it is painted by the sales person on the end of the phone.
I know My suggestion of a 0% card may be frowned up in! but I just see it as a possible tool in the box for your current predicament.
