Beginning IVA journey, very scared!!

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Rubesmcg
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by Rubesmcg » Tue Feb 13, 2018 8:28 pm
Hi everyone,
So me and my husband are just currently thinking about IVAs and it's making me feel very nervous and unsure if we are doing the right thing. I'm so ashamed that between us we have about £37000 debt which started off with us stupidly getting a massive unsecured loan with our mortgage about 11 years ago and then since then we just haven't been able to get on top of our finances and have taken out credit cards and overdrafts. I know we can't get a joint IVA but have been told they can be linked in some way. Iv been reading a lot of people's posts on here and a lot of them sound like the years having an IVA are awful, is it really that bad?? I don't expect it to be easy, I know it is all our fault and we shouldn't of got ourselves in this mess but I spend so much time worrying about debt and I'm scared that the next few years will be even more worry becuse we won't have much spare money incase things go wrong. Do they allow you to have a bit of money just for living and buying children clothes. I have 2 little children and don't want to end up having no money for them at all although I understand I can't expect to have lots of spare cash.
Also worried about creditors rejecting it, does anyone have any experience with Nram? Because they are our main creditors so I expect they will need to agree.
I'm so desperate to just get these debts sorted because at the moment everything is just getting the minimum payment and I can't see a way of ever clearing our debts if we carry on how we are.
Anyway I'm sorry for the long post, guess I'm just wanting some people's opinions as this is the first time ever considering an IVA and I'm feeling very clueless.
Thanks for your time xxx :D
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Foggy
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by Foggy » Tue Feb 13, 2018 9:33 pm
First of all - don't feel ashamed. To be honest £37k is a modest amount. Mine was over £60, which was a very sobering shock when I actually sat down and added it all up!

You can get an IVA each which are made interlocking, so that they are effectively treated as one arrangement, with one payment and all the loans herded together. NRAM generally ask for the standard 5 year term to be extended from the start to a 6 year term. This can then be further extended for equity release towards the end of the agreed term. Do make sure that you fully understand the equity release clause. Check which version your chosen IP will use and get an example calculation --- some firms use a different interpretation.

Now -- life in an IVA is no bed of roses, but, if approached correctly is far better than srtuggling with debt and repayments you cannot manage. I was actually better off at the end of each month as everything essential had been budgetted and paid for ... including kid's clothes, school lunches and a modest amount for entertainment. Christmas and birthdays do, however, require careful planning.

Speak to several firms, and when you have a shortlist ask for people's experiences with them.
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Rubesmcg
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by Rubesmcg » Tue Feb 13, 2018 10:47 pm
Thank you very much for the reply, it's nice to know there's a place I can ask questions because I'm finding it all quite confusing. We have only been speaking to step change at the moment and they are getting a company to get in touch with us so when we have spoken to them and looked at some others I will get opinions. And thanks for the advice about the equity release , we will definately make sure we know all the facts because at the moment I don't know much about that side of things or what our options will be. I know it's not going to be a great few years but I'm hoping it can't be much worse than worrying about paying our debts every month and knowing they are probably never going to be repaid. I'm already very good at budgeting now and have definately learnt my lesson so hopefully starting the IVA isnt going to make our lives too much harder. Thanks again xx
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kallis3
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by kallis3 » Wed Feb 14, 2018 8:37 am
You could also sign up to a few online surveys where you can amass vouchers which is useful for Christmas and Birthdays.
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Foggy
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by Foggy » Wed Feb 14, 2018 9:14 am
Things might have changed, but historically, when Stepchange farm out IVA's rather than doing them themselves, they always used to send them to a company not perceived as being client friendly ( and the forerunner in mis-interpreting equity release).
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Rubesmcg
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by Rubesmcg » Wed Feb 14, 2018 10:22 am
kallis3 wrote:
You could also sign up to a few online surveys where you can amass vouchers which is useful for Christmas and Birthdays.


Yes i might look into this thank you, we are quite good at planning ahead for birthdays and christmas but this maybe useful for the years having an IVA xx
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Rubesmcg
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by Rubesmcg » Wed Feb 14, 2018 10:24 am
Foggy wrote:
Things might have changed, but historically, when Stepchange farm out IVA's rather than doing them themselves, they always used to send them to a company not perceived as being client friendly ( and the forerunner in mis-interpreting equity release).


Oh really? Well we will definately make sure we look into a few companys then. Thanks for the advice xx
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SteveUK
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by SteveUK » Wed Feb 14, 2018 7:29 pm
Don't be scared.

We started in a similar position and the first month was such a relief. Just to be able to go food shopping on payday and having enough left over after the first week to live on for the rest of the month made life so much better. As did forwarding any debt collector letters to the IVA company.

It took a while for the letters and phone calls to stop (top tip for phone callers, refuse to answer any security questions, they will discontinue the call) but there was a definite sense of relief straight away.

Debs finished last September, mine finishes this coming September so 7 payments to go :D

You won't regret it
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Rubesmcg
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by Rubesmcg » Thu Feb 15, 2018 6:56 am
SteveUK wrote:
Don't be scared.

We started in a similar position and the first month was such a relief. Just to be able to go food shopping on payday and having enough left over after the first week to live on for the rest of the month made life so much better. As did forwarding any debt collector letters to the IVA company.

It took a while for the letters and phone calls to stop (top tip for phone callers, refuse to answer any security questions, they will discontinue the call) but there was a definite sense of relief straight away.

Debs finished last September, mine finishes this coming September so 7 payments to go :D

You won't regret it


Oh thank you, it's nice to hear some positive stories and can't wait to be in your position with only 7 payments to go. It just feels like such a massive step to commit ourselves to this and have every penny questioned for the next 5 or 6 years but I really do think I will also feel a sense of relief to be getting on top of our debt. Thanks again for your reply xx
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Foggy
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by Foggy » Thu Feb 15, 2018 9:55 am
Rubesmcg wrote:
SteveUK wrote:
Don't be scared.

We started in a similar position and the first month was such a relief. Just to be able to go food shopping on payday and having enough left over after the first week to live on for the rest of the month made life so much better. As did forwarding any debt collector letters to the IVA company.

It took a while for the letters and phone calls to stop (top tip for phone callers, refuse to answer any security questions, they will discontinue the call) but there was a definite sense of relief straight away.

Debs finished last September, mine finishes this coming September so 7 payments to go :D

You won't regret it


Oh thank you, it's nice to hear some positive stories and can't wait to be in your position with only 7 payments to go. It just feels like such a massive step to commit ourselves to this and have every penny questioned for the next 5 or 6 years but I really do think I will also feel a sense of relief to be getting on top of our debt. Thanks again for your reply xx


It can feel a bit invasive, but can also become a way of life if approached correctly. Try to treat your IP as a friend, working together to solve the problem and build some rapport with your case worker, if you can (some firms make this impossible). Over the years on this forum I have noticed that most problems are down to a misunderstanding ( on either or both sides) and easily sorted with chat. Also, those that treat the IP as an adversary or try to avoid their obligations as much as possible are the ones that end up with the more serious problems.

Focus on the positives and, as time marches on, look back at what you have achieved, rather than forward, down the tunnel. Looking forward, 5 or 6 years is a daunting prospect, but, when you get to the other end, it wsn't that long in the grand scheme of things ... and you will be debt free !!

Prince George was born 5 years ago -- seems like yesterday !
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kallis3
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by kallis3 » Thu Feb 15, 2018 10:06 am
We've all been there - our debts were over £80k! It is a slog but you'll get there and we are all here to support you along the way.
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Rubesmcg
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by Rubesmcg » Thu Feb 15, 2018 1:54 pm
Foggy wrote:
Rubesmcg wrote:
SteveUK wrote:
Don't be scared.

We started in a similar position and the first month was such a relief. Just to be able to go food shopping on payday and having enough left over after the first week to live on for the rest of the month made life so much better. As did forwarding any debt collector letters to the IVA company.

It took a while for the letters and phone calls to stop (top tip for phone callers, refuse to answer any security questions, they will discontinue the call) but there was a definite sense of relief straight away.

Debs finished last September, mine finishes this coming September so 7 payments to go :D

You won't regret it


Oh thank you, it's nice to hear some positive stories and can't wait to be in your position with only 7 payments to go. It just feels like such a massive step to commit ourselves to this and have every penny questioned for the next 5 or 6 years but I really do think I will also feel a sense of relief to be getting on top of our debt. Thanks again for your reply xx


It can feel a bit invasive, but can also become a way of life if approached correctly. Try to treat your IP as a friend, working together to solve the problem and build some rapport with your case worker, if you can (some firms make this impossible). Over the years on this forum I have noticed that most problems are down to a misunderstanding ( on either or both sides) and easily sorted with chat. Also, those that treat the IP as an adversary or try to avoid their obligations as much as possible are the ones that end up with the more serious problems.

Focus on the positives and, as time marches on, look back at what you have achieved, rather than forward, down the tunnel. Looking forward, 5 or 6 years is a daunting prospect, but, when you get to the other end, it wsn't that long in the grand scheme of things ... and you will be debt free !!

Prince George was born 5 years ago -- seems like yesterday !


I know 5 or 6 years will go quick and every payment will feel like we are getting more in control of our debt rather than getting nowhere paying minimum payments. Its just time to start finding the right company now and i have read everyones advice about this on my other post. Thank you xx
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Rubesmcg
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by Rubesmcg » Thu Feb 15, 2018 1:59 pm
kallis3 wrote:
We've all been there - our debts were over £80k! It is a slog but you'll get there and we are all here to support you along the way.


Aww thank you, its quite nice to know there are people who had more debt than us haha. I always feel like nobody else will of got themselves in this position and still feel very annoyed with ourselves for doing it. Im sure i will need that support along the way so its nice to know i can come on here xx
Meech
Posts: 13
by Meech » Wed Apr 18, 2018 7:01 am
Hi...

I know the last reply was a while ago but I just wanted to say thank you for starting this thread...my husband and I are just about to start an IVA and a google search for similar experiences led me here. Like you, I was desperate for positive IVA stories rather than the horror ones I kept coming across!

Foggy's advice about keeping a good relationship with your IP was spot on...I think that goes a long way.

The fear of going into an IVA is a very strange thing, full of mixed emotions - there is the shame of getting there in the first place (although usually its just down to trying to live and it getting out of control, rather than a lavish champagne lifestyle!), there's also the guilt regarding the reduced payments....then there's this strange worry about not having the so-called safety net of credit, which ironically is the very thing that has been crippling us!!

Really what I am trying to say is that it about the mindset...and its true as someone says - I think being able to operate within the means of having all our essentials met will be so much better than the stomach churning worry of finding the money to meet debt repayments every month. I know I for one long for a peaceful nights sleep...

Anyway, sincere apologies, I did not mean to drone on in your thread! I actually just wanted to say that I hope all is going well with you...and again to thank you for this - people need to read experiences like this to know they are not alone
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Foggy
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by Foggy » Wed Apr 18, 2018 7:14 am
Meech wrote:
Hi...

I know the last reply was a while ago but I just wanted to say thank you for starting this thread...my husband and I are just about to start an IVA and a google search for similar experiences led me here. Like you, I was desperate for positive IVA stories rather than the horror ones I kept coming across!

Foggy's advice about keeping a good relationship with your IP was spot on...I think that goes a long way.

The fear of going into an IVA is a very strange thing, full of mixed emotions - there is the shame of getting there in the first place (although usually its just down to trying to live and it getting out of control, rather than a lavish champagne lifestyle!), there's also the guilt regarding the reduced payments....then there's this strange worry about not having the so-called safety net of credit, which ironically is the very thing that has been crippling us!!

Really what I am trying to say is that it about the mindset...and its true as someone says - I think being able to operate within the means of having all our essentials met will be so much better than the stomach churning worry of finding the money to meet debt repayments every month. I know I for one long for a peaceful nights sleep...

Anyway, sincere apologies, I did not mean to drone on in your thread! I actually just wanted to say that I hope all is going well with you...and again to thank you for this - people need to read experiences like this to know they are not alone


Hello, Meech, and welcome. Yes the horror stories are always the ones that get the headlines and the plaudits go unheard ! It is a pity because, handled correctly and with a good IP, an IVA is a life saver for some (possibly literally!).
Best of luck with your journey, do not hesitate to post if you have any questions, want to praise your iP or just want an ear or shoulder.
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