Can I make offer to creditors myself?

cleomolly

Hi, just a quick question, whilst I'm thinking about an IVA, I realise that I could prob pay more to my creditors than I would in an IVA agreement, my situation at the miniute means I am struggling to make minimum repayments, but I wondered if I were to write to my creditors asking them to freeze interest on my accounts, for the time being, and making an offer of repayment, based on what I can afford, would they accept this, or would I be better going down the IVA route for the help I would get from them?

Thanks

ALIBOBSY

You can do offers yourself, they will probably want a breakdown of your income and expenditure. CAB can also help you with these. Most will accept but you may find some who refuse. In the long term this would effect your credit rating less than an IVA, but may take longer to sort out and clear your debt. Defo get some debt advice as to which is the best option for you. There is the CAB or one of the other debt charities, don't use one of those fee paying companies.

good luck

alix

rog2

Many people think that an IVA is the only option open to them, whereas it is really only just one of many. In my opinion, an IVA should be considered when all other options have been explored and discounted. Properly managed, an IVA can be an excellent way to deal with a debt problem, but you should remember that it is a form of 'Insolvency' as an alternative to 'Bankruptcy' - as such your details are published on the Insolvency register, and a 'failed' IVA will usually lead to Bankruptcy.
IF you feel that you would be able to deal with your debts by making reduced payments to your creditors, then maybe a DMP (Debt Management Plan) may be more suitable than an IVA.
I agree with ALIBOBSY that you should talk with CAB, or any of the Debt Counselling Charities such as:

• CCCS - www.cccs.co.uk/ tel. 0800 138 1111
• National Detline - www.nationaldetline.co.uk/ tel. 0808 808 4000
• A Specialist Det Adviser at your local CAB

The aove charities will give you independent, professional and impartial advice, which will not cost you a penny. There are even on-line checkers if you can't get through straight away.
It may well be that they reccomend an IVA in your situation, but you really won't know unless you ask.

Good luck.