IVA information

Foxymum1977 · 21 March 2018 at 3:07PM

Hi all I'm after some advise asap for my daughter she's just under 7000 in debt due to credit cards and a pay day loan, she is now looking into an IVA to help clear these debts so she has 1 payment a month and clear everything and be able to live,
Does anybody know if you have to pay a fee for an IVA and what this is likely to be? Also they've said to her she can over pay if she has the money to pay it off quicker?
Any advise would be brilliant she's worried sick and so are we !!!128546;
We are in no debt ourselves and know nothing about IVA only what I've read online which is confusing
Thanks in advance

leninspot · 21 March 2018 at 4:43PM

They can be a good thing. Go to a debt charity for professional advice as a debt management plan might be worth considering. What matters is that your daughter is confronting the problem and now she WILL find a way to get herself sorted. But DO go to a debt charity - they'll sort her out. Good luck.

National_Debtline · 21 March 2018 at 6:15PM

Hi there

Your daughter will pay a fee for the IVA but this is usually taken via the monthly payment she makes. IVAs are generally not flexible in terms of how much you pay, if you have an increase in income they are usually entitled to take a fixed percentage of that extra money. IVAs can be given a hard sell as the company involved is making money from them, that's why it's important she gets some impartial advice from one of the free debt advice agencies first.

While IVAs can work for some people your daughter's level of debt is relatively low. It's quite possible she may be able to clear the debt through a free debt management plan (DMP). Again one of the free advice agencies will be able to advise her on this. I hope it all goes well.

Susie
@natdebtline

sourcrates · 21 March 2018 at 9:29PM

An IVA for such a small amount of debt is not advisable.

Google Debt Relief Order see if she would qualify for that.

If not a debt management plan is the way forward.

Foxymum1977 · 21 March 2018 at 9:55PM

Thank you all

MalMonroe · 22 March 2018 at 1:21AM

Hi, the best thing to do is contact a debt help agency, I used StepChange, and they changed my life, for the better. It's free to call 0800 138 1111. And they advise the very best route to take. I cannot praise them highly enough, they are not judgemental at all and are so very helpful and knowledgeable. Your daughter has nothing to lose and she really shouldn't feel ashamed or embarrassed, as I said, she will not be judged. I wish her all the best. I was deep in debt and now I'm not, a free phone call really did save me, and I'm not exaggerating.

fatbelly · 22 March 2018 at 4:52PM

sourcrates wrote: »

An IVA for such a small amount of debt is not advisable.

Google Debt Relief Order see if she would qualify for that.

If not a debt management plan is the way forward.

Totally agree.

If you ask an IVA provider (or worse an IVA lead generator) if you should have an IVA, the answer will be yes.

It's a badly regulated industry, and the fees distort sound advice.

DRO or dmp more likely to be suitable.

knightstyle · 22 March 2018 at 6:19PM

Hi Foxymum, a close friend was in a similar situation. She contacted Christians agains Poverty and they sorted her daughter out with manageable monthly payments. No fees involved and a case manager to follow it through from beginning to end.
See https://www.nationaldebtadvice.org.uk/Support/DebtHelp

Foxymum1977 · 23 March 2018 at 9:20AM

Thank you all for the great advise! She contacted step change yesterday who advised her to contact both credit card companies and explain the situation, both cards have been frozen for 30 days to allow her time to sort herself out, she starts a new job mid April but won't get paid till mid may so may need to freeze again if possible,

The pay day loan needs paying asap as obviously growing! I am very reluctant to pay this as this is the 2ns time she has had pay day loans and didn't learn from the first mistake,

Very difficult worrying situation, she has someone hassling her from an IVA company who when I said she's on the phone to step change he even said step change will advise her to do an IVA as well!! Which they did not!!
Thanks all again

sourcrates · 23 March 2018 at 9:28AM

Forget the IVA, an IVA is best suited to debts over £30,000 due to the fees involved, (which incidentally is why IVA company is pestering her, they make big money from them, so there advise is biased and should be ignored) there are other solutions for debts under 10k.

Let the pay day loan company know of her difficulties as well.

They are bound by the same rules as everyone else.

In fact they are more likely to agree a total wipe of interest and to just repay the capital balance at an affordable rate.

But you must speak to them.

Check out this site, its full of useful information :

https://debtcamel.co.uk

fatbelly · 23 March 2018 at 2:49PM

If you want to name the IVA company then that may be useful if anyone ever searches for their name on this site.

IVA information

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