A reader who has settled his Individual Voluntary Arrangement (IVA) early asked: My IVA is still showing on my credit history. The start date was January 2014. I have been removed from the Insolvency Register. I have now [mid 2018] been told that I have to wait for another 18 months before the IVA will be removed. Is that right? I am sure you have heard it all before but none of this was in … [Read more...]
Readers have asked a huge variety of questions in the comments below Debt Camel articles. From credit ratings and mortgages to payday loan refunds and IVAs...
Some of them needed such long replies that I have turned them into the articles that are gathered here.
Mortgage repossession and your credit record
A reader, Mr D, asked: I had a mortgage shortfall from 2006 after my house was repossessed by Natwest. As a mortgage shortfall stays on file for 12 years, I decided to make a Full and Final settlement offer in January this year which they accepted and which has now been paid. Now with both Equifax and Experian, the account has disappeared, it doesn't appear in my open or closed accounts. … [Read more...]
Overtime & new baby costs – how do these affect an IVA?
A reader, Mr G, asked: I’ve had a lot of overtime recently covering for someone at work who was very ill. This has come in handy as it coincided with my wife’s maternity leave and the extra expense of a child. Will my IVA expect me to pay them the overtime money after my annual review in a couple of months? Overtime and IVAs As with many questions about Individual Voluntary … [Read more...]
How to find out which payday lenders you used
A reader if there is an easy way to find out which payday lenders he used a few years ago. This is a really common question. Many people who had big problems with payday loans before 2015 ended up switching bank accounts, as it was the only way to stop the lenders emptying their account when they were paid. Some people even changed email addresses and phone numbers to escape from the payday … [Read more...]
“When will my credit record be clear?” Good news & bad news
A reader asked: I have a debt with a default date 30 April 2013. I was paying the debt for about a year then stopped as the default would always be on my file in any case. Will the debt drop off in 2019, or will it extend to 2020 as I was paying it for a year? Do settled accounts affect your credit score? The simple answer is that all defaults drop off your credit record after six years, but … [Read more...]
“Which high cost debt should I repay first?”
Steve asked: I have received £4000 from a payday loan refund. I have a £2500 loan with Amigo, £1500 left on a Likely Loans loan, a £2000 overdraft and 750 x 2 on credit cards. (Limit 800 on each). My dilemma is not knowing how to spend the £4000 in order to boost my credit score. Which is the most damaging and needs paying first? Although your situation won't be the same as Steve's, you may be … [Read more...]
Has a lender written off my debt?
A reader asked hopefully the other day if his debt had been written off: I've just seen that the balance on a credit card I haven't been able to pay for more than a year is now zero. If it's been written off that would be great, but how can I find out if this has happened? The bad news is that this is very unlikely. The debt has probably been sold to a debt purchaser Lenders like to get … [Read more...]
Tax debts – should I go for an IVA or bankruptcy?
A reader asked: I'm thinking about an IVA. I've got 8k of credit card debt and overdrafts but I owe a lot of income tax and VAT. Probably a lot over 20k but I haven't filled out any tax returns for years. Do I have to get the exact tax owed when applying for an IVA? I don't think I can cope with all that. I was self employed but I now have a job, not well paid. I'm now living with my parents … [Read more...]
IVA – why you may get a cheque for uncashed dividends
A reader asked: I have received a letter from my IVA firm with a cheque for over £2000, saying uncashed dividends had been returned by one of the creditors. They have said if I don't cash it in 90 days they will give it to a charity. Now I'm worried - What are these dividends and why would the IVA firm send them to me, surely it would be classed as a windfall? It says the creditor should … [Read more...]
Must you give your IVA firm your banking login details?
A reader asked: I've been told I have to give my IVA firm my online banking login details so they can see my bank statements. Why do I have to do this? Yet another thing they never tell you before you sign up. An Individual Voluntary Arrangement (IVA) can be a good debt solution for some people but it is a long-term formal legal contract which may not have been clearly explained at the start. Or … [Read more...]