I've been in and out of work for years now, and have got myself in way too much debt for me to handle. I'm now in steady, guaranteed work and want to start paying it off as soon as possible. however currently I make only make a smidge over £1000 a month according to this salary calculator which I found greatly useful sorting out my finances as it broke my income down into easy numbers to work with. My expenses add up to around £850-900 a month so I have very little room for anything to go wrong. Can I start paying off my debts now, or should I wait for more income? I really don't know where to start, who to talk to, or what to do.
An IVA may be a way forward to reducing your monthly outgoings. It isn't a walk in the park and you have to make substantial sacrifices, no holidays, no fancy nights out etc. You will have a fixed figure to live off though and you will be in control of that figure as your debts will be 'lumped' into the one IVA payment. You have to complete an Income and Expenditure report, you are allowed figures for different utilities and rent etc and what is left will be the figure your IP designates as the IVA payment, you do not get to make that decision. If you rent it will be a 5 year plan, you will be declared insolvent (not Bankrupt) and your credit score/rating will be shot for 6 years from the start of the IVA. You are not allowed to take out further credit while in the IVA, so if you get caught short during the term, say the washing machine dies, then you have to make that communication with your IVA company, who can arrange a payment break so you can get a replacement. You have to learn ways to save money and where best to spend it, 9p Aldi beans over 45p Heinz... Speak to several companies don't rush in as it needs careful consideration. If you are asked for an upfront 'deposit' then just hang up and discard that company as it isn't required to make any payment until the IVA is in place. Good luck.
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues
You need to have your income and expenditure calculated correctly before you can consider which solution is best for you. I would suggest a chat with a couple of insolvency firms to compare advice ( they are not all the same!).
As a moderator I am unable to recommend specific firms, but I am sure the members will come along and tell you their experiences with the firms they have used. We also have several regular contributors who are IVA providers and a trawl around the forum will reveal those
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