IVA or Debt Management Plan, then which one?!

debt-free-by-40

Well, I've done some calculations and usig the snowball calculator, I've worked out that after paying £500 a month off in debts (slightly more than making min payments) and all expenses (i've also put in some contingency) then I'll have £236 a month left for food and generally going out/living etc. I've allowed for all household bills, mobile phone, everything i can think of, basically. If I'm not honest here, then what use is this?!
So, the big question now is, is that doable? The snowball says I'll be debt free in 72 months - but this is the same as the Debt Management Plan offered by CCCS, where the payments are lower (still unclear as to whether my student loan repayment would be included in their figure).
My thinking is that if I can do this without a DMP or IVA then this, overall is so much better for my future mortgage prospects.
What do you guys think?

shakeNmake

Can't speak about the DMP, but £500 a month over 72 months is £36,000, so your paying £11,500 in interest over the 6 years. This is almost 50%, and seems very high.

If you can move things around to reduce you're interest payments, you will pay it back quicker. Are you're interest rates high?

Deep_In_Debt

Not really read the thread properly but just wanted to say that Payplan are an IVA company but do offer fee free dmps. They tried to "sell" me an IVA which was not suitable for me. So I'm not a huge fan. I could have gone for an IVA and risked everything (my house and job) and potenitially been debt free in 5 years but also been facing BR - a lot can happen in 5 years as it did with me as I lost what I thought was a "secure" job in August, therefore BR would be facing me now after having paid IP fees and creditors not seeing a penny of it.

I'm now on a dmp with CCCS and reducing my debts slowly but surely. A year ago, I was told it would 9 years to clear my debts but I;ve managed to reduce it to about 6 years already. Dmps are far more flexible. Do think very carefully.

Good luck.

fatbelly

It would be realy helpful if you posted a statement of affairs

debt-free-by-40

SOA:

Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 1548.85
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1548.85
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 425
Management charge (leasehold property).. 0
Council tax............................. 50
Electricity............................. 35
Gas..................................... 35
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 10
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 150
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 18
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 8
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 946

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Barclayloan....................4624.9....128.3.....9.4
Barclaycard....................3152.65...86........29.4
Virgin.........................5275.84...86.4......17.59
Student Loan...................5587.07...113.2.....NaN
Overdraft......................1100......0.........9.9
Egg............................4727.2....113.......NaN

Usury_up_and_wear_it_out

Go for bankruptcy, stop messing around with the next 6 years of your short life, bankruptcy is almost an instant end to a miserable period of your life worrying about other peoples debt. The guys on here will look at your outgoings and I am sure will advise of anything else you can legitimately claim for in bankruptcy to reduce/minimise any sort of payment order. It's like pulling off a plaster. IVA's are a con.
Get on with it. XX

debt-free-by-40

Usury_up_and_wear_it_out vbmenu_register("postmenu_19113575", true); - thanks for your post. As I said in the first post, bankruptcy is not an option for me, for many reasons. I'm not even sure if I'd qualify as I am able to meet my min monthly obligations anyhow.

shakeNmake

You're Barclaycard and Virgin rates are very high. If you can get them down to single digits (even 9.9%), youll save a whole year of repayments and £5,556 in interest (I've assumed a couple of things for those numbers - student loan at 3.8%, Egg at 9.9% and repaying £10 a month on you're overdraft).

Can you move the debt onto other cards to reduce the rates. Even a long-term loan with a lower interest rate would be better, as long as there's no early repayment penalty.

I see those 2 cards as you're main priority.

What are you doing to change you're expenditure patterns? If you can change you're behaviour, then saving towards that mortgage for the lovenest with the boyfriend will be so much easier.

debt-free-by-40

I have already had my rate reduced by barclaycard by 5% APR - the said thats the best they can offer. I haven't tried the others - it's all a bit scary speaking to them (I know, I need to grow some b&lls).

debt-free-by-40

I have no capacity to move the other debt onto existing cards. Egg is at 17.9 %. Student loan is at 4.8%. Currently not paying anything on the overdraft. As I said, if I pay all min payments on exisiting debts, I have £230 left for food and general expenditure, so no capacity for saving anything towards the mortgage. Obviously I will get pay rises during this time (ore we'd hope so!) and if I know I can survive on that then the additional stuff can go onto the debt.