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ETphonehome

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Post by ETphonehome » Wed Aug 11, 2010 11:50 am
Hi!

I have been looking through the forum and have found it really useful. I am not sure whether an IVA is the way to go for me?

I am 27 years old and recently moved to London to start training as a Paramedic. Stupidly I kept putting things on my cred cards and I already have a loan that I have been paying. My income to start with did not cover my rent and travel expenses so I have been adding to my debt.

I am now in a position of owing £20,000 between my overdraft, cred cards and loan. I'm just in a rut of getting paid and all my money being used to pay the minimums and my rent etc.... I get to the end of the month and barely have money to eat.

I want to know if starting an IVA is the right option for me? I have filled in the form at the top of the page and it came back with "unsecured loan" as i should have enough disposable income. But noone will give me a loan as my credit rating is poor.

It's frustrating as I have now had a payrise and have the opportunity to do overtime, but can't get myself over that first hurdle of being in credit on my account and not paying out stupid amounts of interest.

I would love it if anyone could give me some advice. Thanks

Emma
 
 

ETphonehome

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Post by ETphonehome » Wed Aug 11, 2010 12:21 pm
I have just spoken to someone at Vincent Bond & Co and they said a DMP would be the bes toption for me.

Now I don't know much about it, but is it a better option than an IVA?
 
 

MelanieGiles

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Post by MelanieGiles » Wed Aug 11, 2010 12:35 pm
How much disposable income do you feel that you have available to offer to creditors on a monthly basis, having provided for all of your usual household and general expenditure?
Regards, Melanie Giles, Insolvency Practitioner
 
 

ETphonehome

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Post by ETphonehome » Wed Aug 11, 2010 12:36 pm
between £350 and £400
 
 

MelanieGiles

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Post by MelanieGiles » Wed Aug 11, 2010 12:38 pm
Then I think that the advice you have been provided is probably the correct route, given that you ought to be able to repay your debts over a realistic timescale under a DMP. Do make sure though, that those payments are affordable. Living in London can be very expensive, and it is possible that your disposable income may not be as high as you think, in which case an IVA might be a better option.
Regards, Melanie Giles, Insolvency Practitioner
 
 

ETphonehome

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Post by ETphonehome » Wed Aug 11, 2010 12:50 pm
Thank you, yes I am trying to make sure I have budgeted for every eventuality. I am also working as much overtime as I can to make sure my wages will be sufficient to do this.

Thank you for your help
 
 

ETphonehome

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Post by ETphonehome » Wed Aug 11, 2010 1:37 pm
Also one further question..... if you pay more off as the time goes by, is there an early repayment fee? Or can you keep topping it up?
 
 

MelanieGiles

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Post by MelanieGiles » Wed Aug 11, 2010 11:56 pm
You would only effect an early repayment if you were to pay all of your creditors in full over the life of the IVA. This should not incur additional fees.
Regards, Melanie Giles, Insolvency Practitioner
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