Should I switch from DMP to IVA

JoJo_Sparkly

Hi

I currently have a DMP through CCCS which I have been paying for 2 years. I originally owed about 56K (gulp!) and now owe in the region of 45K. I pay £343 per month and have regular income. The predicition on the site is that this will be paid off in March 2020 - which is horrific. Would I be better off switching to an IVA?

Jo

CCCS_Matthew

Hi Jo,

IVA's tend only to be suitable for a small percentage of people due to them having very specific criteria for being a realistic solution. If you would like us to take a look at your situation to review any other options, including IVA's then you can call us for a review of your account and we can explain what options you have.

Hope this helps,
Matthew.

moneysavingplumber

Personally I would say that it depends on what you want for the future. If you don't ever want any credit again then it may be suitable to stay on the DMP, personally I wouldn't want to be paying that long. The advantage of the DMP over an IVA is flexibility should your circumstances change, and if you can pay more into the DMP you can clear the balance more quickly. The disadvantage is that your credit rating will be shot for six years from the date of completion (2026!) and the creditors can also excercise flexibility (i.e. reinstating interest, CCJs and charging orders etc).

Get some advice from National Debtline and the CAB as well as CCCS.

Deep_In_Debt

I think your credit rating is also trashed for 6 years after you complete your IVA as well so I don't think it makes any difference in that respect.

Also, remember a lot can happen in 5 years or for the term of the IVA - if you lose your job and can't keep up repayments, it could result in bankruptcy.

IVA's work for very few people - do speak to the CCCS as suggested to look at your options.

Good luck.

moneysavingplumber

No, in an IVA it's six years from the start of the agreement, and defaults included can start no later than the start date of the agreement. I completed IVA in October and my Experian 'credit score' is 815 at the moment, considered 'Fair'. Max Recovery/Eversheds have obliged in completely removing their default entries even though they are not required to for another ten months, and Wescot have finally marked the last one I have as satisfied. Of course this all depends on completing the IVA successfully and as you rightly say, alot can happen within the five years, although I think it is possible to take out PPI on IVAs now.

Deep_In_Debt

Ok, wasn't aware of that - thought that like dmp's our credit file is shot for 6 years after the last payment - thanks for making that clear.

However, I still think that OP should think carefully. I was told by CCCS that it would take me 9 years to clear my debts on a dmp but since January, I've managed to reduce that to about 6 years. However, I do appreciate that 2020 will take some serious hard work.

I just think that OP should speak to CCCS and other free places to examine all options.

moneysavingplumber

Yep, I totally agree! :beer:

JoJo_Sparkly

Thank you all for the advice -

Matthew, I certainly will talk again with CCCS - I am very lucky in that I do have relative Job Security and its unlikely that I would be likely to lose it. I just think that 2020 is a very very long time away.

Thanks again for tha advice.

JO