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IVA opinions

6 replies

Imanidiotiknow · 06/03/2022 11:27

I'm just looking for some advice please.

We've always had some debt alongside some savings. It was always manageable and we had a good quality of life, all our funds are pooled.

Then I became pregnant, my income took a massive hit but it was topped up by savings, then covid hit and meant no childcare as dm who said she would help is cev and dh job is public facing, dc2 came along so another 9 months mat pay and eventually depleted savings and increased spending on cards. I couldn't afford to go back to my career because 2 x ft childcare was more than I'd earn.

The last few months we've ran out of savings. I can't work more hours because of dhs job. I'm lucky enough as it is to have a job that has permitted me to work the random hours I need. I work 20 a week and opened an etsy business which covers council tax and a food shop.

Basically I can just see us heading down a slippery slope now. We won't get any free childcare til September for the eldest, we have no family who are able to help. We're in our overdraft for the first time and I don't think we will get out of it. After all bills we have 300 a month left for food, petrol, clothing, entertainment and it's just not stretching.

I'm seriously looking at a dmp or iva, but I don't know how they work.

If anyone had an iva do they leave you much left at the end of the month?

The interest rates mean we aren't paying anything off in real terms so it feels inescapable and realistically don't think it would be paid off in 6 years anyway.

We don't own a home otherwise I'd have taken a secured loan. I've looked at a big loan but nowhere would approve us.

It's just over 25k we owe, please don't judge. Its embarrassing enough to find ourselves in this position.

OP posts:
10001namechanges · 06/03/2022 11:48

I think you would be best to speak to someone who can offer real help and solutions. I have relatives who went down the IVA route. Having to live with only cash was a very hand to mouth existence & they often had to have help from relatives to buy food for they children and pets.
www.stepchange.org/?channel=ppc&gclid=CjwKCAiA1JGRBhBSEiwAxXblwQABj3JQApuoNyxNKKdy_5Y5zTLgzTDqJQeyYzIbp3tuPye4StJG0xoC8u8QAvD_BwE&gclsrc=aw.ds

changedebtsupport.co.uk/?gclid=CjwKCAiA1JGRBhBSEiwAxXblwZmoXkjv1GIroabUFA6-2bE_5LjTs9RHGrJP6u67wtwqbUvMYDSUGBoCeowQAvD_BwE

CeleriacOfTheNight · 06/03/2022 11:55

If you haven't already, I strongly recommend you post on the Debt Free Wannabe board over on the MSE website.

The people there really know their stuff, and can help you work out what's best for you based on your situation.

AnotherEmma · 06/03/2022 12:14

I am not a debt specialist but I have colleagues who are, and an IVA is rarely the best option for our clients. It might possibly be the right thing for you, but you should talk to a debt adviser who will assess all the options including DRO, DMP etc.

National Debtline has a helpful website with lots of information; I suggest you start with this page and have a read of other content too:
www.nationaldebtline.org/fact-sheet-library/ways-clear-your-debt-ew/

Then contact National Debtline or another debt advice organisation such as Citizens Advice or StepChange. They can help you work out a budget and the best debt solution for you.

BarbaraofSeville · 06/03/2022 12:28

You need to do a thorough review of your budget and seek professional advice before going down that route.

Have a look at moneysavingexpert for a systematic budget review and signposting to help

www.moneysavingexpert.com/family/money-help/

Imanidiotiknow · 06/03/2022 12:37

Thank you for the suggestions I'll read through all your links. I completely forgot about money saving expert. I'll post there too. Thanks again x

OP posts:
AnotherEmma · 06/03/2022 12:44

This MSE article is excellent with loads of helpful info and links
www.moneysavingexpert.com/loans/debt-help-plan/

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