Relieved to be in an IVA

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Mrs_Brown
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by Mrs_Brown » Fri Sep 28, 2018 12:45 pm
Hi, first off as this is more general chat than a question, if this isn't allowed, admins please delete and accept my apologies. I am posting here as I don't especially have anyone in real life who is aware of the situation to talk to.

On an earlier post I saw that someone mentioned Capital One were increasing a minimum payment. I know a friend got a notification recently and is affected by MBNA doing the same. I had a bit of search on it at the time, I hadn't realised new rules were coming in. The friend was told as she had made minimum payments for the last xx months, the minimum would go up from 1% to 2.5% of the balance. If the payments continued at this for another set period, they would consider cancelling the account. Apparently this is intended to help people in debt, get out of debt! I guess it all depends on affordability and mine had spiralled beyond affordable.

I thought to myself if that was me prior to the IVA, I would have fainted reading that letter with the level of increase. Admittedly MBNA were my lowest credit card, but if it had happened across all of the ones I had, especially the one I was already paying £170 a month to.

I am so relieved not to be faced with that. I can't help but wonder if, in the coming months, the number of IVAs and DMPs and other debt solutions taken out will be increasing. Especially seeing as I have read recent headlines about a couple of celebrities having to enter an IVA, perhaps this will be more at the forefront of people's minds.
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kallis3
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by kallis3 » Fri Sep 28, 2018 12:51 pm
It's ok Mrs Brown and it's nice to get heads up on this sort of thing.
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Foggy
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by Foggy » Fri Sep 28, 2018 12:54 pm
We used to chat about anything and everything -- even share jokes, so, yes, your post is OK Mrs B :-)
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Foggy
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by Foggy » Fri Sep 28, 2018 1:04 pm
Credit card companies should be stopped from giving time limited lower rates and interest free periods to hook customers. They know fukll well that many people overrun these periods and then get hit with the interest. They are enticing people to buy what they really cannot afford, encouraging "buy now - pay later". All well and good if the job doesn't go down the pan, hours get cut and sickness never strikes. They like to give out umbrellas when it is sunny and take them back off you when the clouds start to gather.

My co-op card has just announced increases from 6.9% to 25% interest --- as it happens it doesn't worry me as I have nothing on it ... but, imagine if I had maxed it out to take advantage of the 6.9% !!
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MerlinL14
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by MerlinL14 » Fri Sep 28, 2018 1:07 pm
There does seem to be, to me anyway, a lot of 'high profile' people reportedly heading towards the IVA route. Even big corporations taking CVA's and pleading with landlords over property rent. The biggest problem is we just don't know what is going to happen in 6 months time, post Brexit could be a welcome change or a total financial disaster. This is just compounding people's fear of how to manage their accounts, if Banks raise lending rates now in fear of what could happen I bet they won't be so quick to lower them if it turns out to be all milk and honey!
Thankfully post IVA I am still on a 0% rate credit card, paid in full each month when it does rarely get used. I find that post IVA I am stronger and more aware of how I spend my income, where it goes and how much I have to actually save. Trying to 'educate' some of my friends, without spilling the beans that I have been insolvent, about money management is like talking to cats! But hey, I was like that 7 years ago as well.
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Mrs_Brown
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by Mrs_Brown » Fri Sep 28, 2018 3:13 pm
Glad it's OK, sometimes it's hard having no one to chat to about these things! I found the money saving expert link where I originally read up about this.

https://www.moneysavingexpert.com/news/ ... tent-debt/

I used to have both capital one and mbna cards many years ago, from around the millennium until 7yrs ago. I actually had paid them off and cancelled them before everything spiralled and I ended up in a financial hole. I had about £3k on each back then. I know MBNA always had lower payments than Capital One, despite same balance as they used different rules to calculate minimum repayments. I vaguely remember a different company changed their minimum repayment calculations about 3yrs ago, think it was Lloyds, and that was the beginning of me going from being in "comfortable" debt to how do I pay everything and buy food. Yet I struggled on and juggled everything for 2more years.
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luluj
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by luluj » Sat Sep 29, 2018 3:52 am
Mrs Brown ...post away ..always someone herevto answer your questions or have a chat with...we the moderators have all been there so our experiences are real life and hopefully can help you x
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