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DMP vs IVA
kirks21
Posts: 13 Forumite
Hi all
apologies if this is in the wrong place but only joined the site a few mins ago!!
right then, i'm currently paying £304 per month on a DMP, have so far paid £2455 since Nov 07.
my outstanding debts in total are around £17,000 (waiting for DM company to give me the exact amount)
The DM company are now suggesting that i go for an IVA (they said it'll work out cheaper per month and will clear my debts quicker?)
i dont own a home and dont drive an expensive car, i dont have kids either. i rent a house with my OH and i get around £1250 per month after tax.
the debt is all mine, my OH is actually really good with money!
so, my question is, before i commit to the IVA, could anyone advise if it would be better than my current DMP?
many thanks for any advice anyone can offer!
apologies if this is in the wrong place but only joined the site a few mins ago!!
right then, i'm currently paying £304 per month on a DMP, have so far paid £2455 since Nov 07.
my outstanding debts in total are around £17,000 (waiting for DM company to give me the exact amount)
The DM company are now suggesting that i go for an IVA (they said it'll work out cheaper per month and will clear my debts quicker?)
i dont own a home and dont drive an expensive car, i dont have kids either. i rent a house with my OH and i get around £1250 per month after tax.
the debt is all mine, my OH is actually really good with money!
so, my question is, before i commit to the IVA, could anyone advise if it would be better than my current DMP?
many thanks for any advice anyone can offer!
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Comments
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Is the DMP and potential IVA with one of the FREE debt charities or with a fee paying company.
If with a fee paying company, then step away!!! NOW!!! They will more than likely be asking you to do an IVA because they get a big fat fee from it that you will pay!
The best advice would be to speak to CCCS, National Debtline or one of the other organisations that are recommended by this site (details at the top of this board) as they are FREE so have your best interests at heart. If CCCS recommend an IVA for example, it is generally the best option for you - but even they say that it is only suitable for 3% of their clients.Successful women can still have their feet on the ground. They just wear better shoes. (Maud Van de Venne)Life begins at the end of your comfort zone (Neale Donald Walsch)0 -
Hi
Welcome
Please can you advise which DM company you are with?
Hoepfully it is one of the ones listed here http://www.moneysavingexpert.com/loans/debt-help-plan#help ?
And have look at Martin's IVA guide http://www.moneysavingexpert.com/loans/pdf-iva-guide.pdf
As IVAs are only suitable for a small number of people. CCCS reckon it is about 3% of their clients, I think.
I will re-phrase that having read the rest of your post. If you rent and do not have assets to protect, it is unlikely that an IVA would be suitable for you. It would make a lot of money for the DM company though.If you've have not made a mistake, you've made nothing0 -
If your DMP is free -it will be paid in aprox 4.6 years if the creditors stop your interest and charges, and an IVA will be for 5 years plus a month or so to set up! Plus there is a cost for an IVA.I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.
CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
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thanks guys
yeah i am with a fee paying DM company - my fault cos at the time i just needed to get it sorted and didnt really shop about - was getting harrassed like mad off the bank
have been on to the CCCS today, did their online advice test thingy so have got that info ready
have looked thru the IVA advice from this site so gonna take that home with me now to read.
had a feeling that the DM company might be set to make £££'s from me doin an IVA, the guy who rang seemed "too" nice!
i'm with debt fixers (DM company)
am currently getting a lot of calls from the creditors again asking me for an updated income/expenditure - have asked the DM company to do this last week
i just wanted to explore all options b4 i sign anything else!!0 -
Please please please transfer your DMP away from the DM company you are with and take it to CCCS who will act in your best interests not in theirs.Successful women can still have their feet on the ground. They just wear better shoes. (Maud Van de Venne)Life begins at the end of your comfort zone (Neale Donald Walsch)0
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have been on to the CCCS today, did their online advice test thingy so have got that info ready
What was your outcome on Debt Remedy?I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.
CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
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CCCS_Sarah wrote: »What was your outcome on Debt Remedy?
can't open the file on my home pc from the CCCS, will post it here 2moro0 -
am i likely to be charged by the DM compnay if i go elsewhere though?
Even if you are (and I truly don't know if you would be) you will still save far more than you are charged in the long run by moving to a free DMP provider.Successful women can still have their feet on the ground. They just wear better shoes. (Maud Van de Venne)Life begins at the end of your comfort zone (Neale Donald Walsch)0 -
am i likely to be charged by the DM compnay if i go elsewhere though?
If you go to on of the free charities (CCCS, National Debtline, CAB) there is no charge for their advice/services. One benefit of going to one of the above, is you will receive impartial advice. They will be able to look at your whole financial situation and give you advice that best suits your situation.I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.
CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
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