My husband has a very poor credit rating but earns good money with quartley and annual bonuses.
I have an excellent credit rating but only work part time.
Due to my husbands poor credit rating (which has very slowly been getting better over the last 10 years) I have been the one to take out any credit cards/loans etc. This was fine when I was working full time but since having our daughter and making a big move I just feel like we are drowning.
We have never missed any payments and we don’t have any defaults. However when my husband gets paid his bonus we pay lump sums off but then something crops up and we have to spend on the credit card again. I just feel like we never have any Money and are constantly paying off our debt. I’m miserable. Do you think an Iva would work for us? I really do t want to damage my good credit rating.
If you were to enter into an IVA your credit rating would pretty much be shot for 6 years so if you are trying to avoid that then you've probably answered your own question to be honest. Are you able to re-mortgage say to raise some additional money if needed?
IVA Mortgage Expert
Zebra Money Centre
Thanks for you reply. We are renting at the moment, which is another frustration. I have tried to refinance the debt into one loan so it would be more manageable but due to my income and husband credit rating that was a no go - I don’t want to apply to lots of different companies and would rather not pay over the odds to do this.
An IVA will trash your credit rating for at least 6 years --- but you will not be allowed any credit during this time anyway. Whatever it is that currently eats up your bonus payments will need to be examined as you will not have this luxury either --- half of overtime and bonus payments have to be paid to your creditors when you get them.
The amount of debt is another factor -- modest amounts might be dealt with by a debt management plan instead. You need to talk over the whole picture with a couple of firms to compare advice.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk