Decision to Make

NickToye

Ok,

I've come to a junction. Debt Matters Plc have gone quite a way with me and have taken on my case, nothing has been signed yet, but they have said that 28k worth of debt can be reduced to just £230 p/m for 5 years through IVA.

PayPlan have finally called me and have arranged for a financial assessment for monday noon. However, the DMP does not seem as attractive as the IVA. With the DMP I will be paying more and over a longer period of time.

Yes, I know its my debt and I should pay it all back, but how much of it is unreasonable interest, and how much of my overdraft is charges. With the IVA I can pay well over half of what I pay now, but I will know in 5 years it will all be gone, everything. Now that is something that is tempting.

Does anyone have any advice? I will take it all on-board.

ms_london

I dont like the sound of Debt Matters Plc - anyone heard of them?? Are they legit? Please dont sign anything until we know :0)

Have you contacted the CCCS for their advice on this matter? It might be worth speaking to them too?

Sorry, I dont know enough about DMP's or IVA's to give any advice, but please dont sign with the above just yet.

xx

NickToye

I'm not going to sign with anyone, but they are legit

Debtmatters Limited. Registered in England & Wales. Company No. 4106678
G.Ratcliffe and M.Prideaux are licensed Insolvency Practitioners authorised by the Institute of Chartered Accountants in England and Wales

NickToye

Anyone heard of Debt Matters? IVA is the way i'm going to go.

lynzpower

Dont debt matters charge you for this "service"

I dont know much about it either TBH. Although, I would say are you claiming back your bank charges? Surely you sohuldnt be putting those on any debt repayment plan, they are yours, claim them back.

NickToye

Well, Debt Matters said to me would I care how much of the money I pay back goes in fees to them? I don't actually pay any money up front or at the end, I don't pay anything at all. Apart from the reduced payment of £230.

After 5 years i'm clear and I couldn't care less if Debt Matters took 80% of that money as fees and the other 20% went to the creditors. The way the guy was saying was in essence do you care that this company that charged you interest and bank charges don't receive the full amount back.

Unless we are talking major ethics here, the main goal is to be debt free, by whatever means.

In terms of bank charges that I was going to claim back, the bank that I was going to claim off have me in debt to two PL and an OD, so i'm not sure if its worth the hassle.

So to answer your question, Debt Matters don't charge me for the service, they just don't pay the creditors the full amount that I pay them. Which i'm assuming that PayPlan do the same.

sparkle84

What you need to remember with an IVA is you will be paying debtclear a fee somewhere between £4,000 and £8,000 however you will pay this no matter what company you use IVA's are legally binding agreements and have to be administered by an IP which costs money so debtclear are possibly no better or worse than anyone else but perhaps you should shop around first I would speak to payplan who use Shaw's for their IVA's and they are supposed to be the cheapest.

Re the £230 a month I don't think you have a hope of getting this accepted, in an IVA as I am sure debtclear have explained your creditors have to vote on your offer and 75% of them must accept it - paying £230 over 60 months is £13,800 appox £5,000 will go to the IP leaving your creditors with approx £8,800 which is about 26p in the £ which they are unlikely to accept, do you own you own home? have debtclear explained that you will have to remortgage that in year 4 to offer you creditors a lump sum? You will have to provide the IP with details of your income each year and you IVA will be increased if your income rises!! I really would advise you to talk to payplan who will send you to Shaw's and perhaps they can give you some more advice.

NickToye

Debtclear? I think you mean DebtMatters. Ok,

Firstly, I don't own a home so that shouldn't really come into the equation. And also what's this about a lump sum being paid in the 4th year? Never heard of that one before.

Secondly, they have told me that the chances of the creditors accepting this is highly likely. I presume they all say this, and I doubt that PayPlan is any exception.

Payplan are calling me on Monday morning, so I have plenty of time to make a decision.

earwig

one thing to think about what is not addvertsed by these companys is at least 80% of your creditor have to agree to your iva and if they think they could get back more of their money on a dmp there not going to go for it and also you have to have a certain amount of debt to even be consdierd i would speak to payplan on monday and talk to them they will know if you stand agood chance of getting an iva and you know that there not on the make from you they will give you the best advice for you for free

NickToye

Well what I can't understand is that many of you all think PayPlan is the way to go and that they are the creme de la creme of all this. I'm not going to say you are wrong.

However, the service I have received is pretty average. I have had a conversation with one Portugese lady who I found to not really understand what my situation was and another conversation with another European lady who in all honesty has left me more confused.

Debt Matters have answered all my questions clearly and concisely, they rebuffed the claim that I will have to pay a lump sum in year 4. They have also stated that they deal with night on 500 of these cases each month, and have categorically stated that the £230 will be accepted.

Its also 75% of the creditors need to accept it, on which they will otherwise they know they won't get the money back.

I do appreciate the advice and it has cause me to go back and ask more questions, I will also read all the small print and leave no stone unturned, but unless someone can say to me Debt Matters are a bad company, chances are I will go with them.

PayPlan are calling on Monday, and if they offer the same £230, then we'll see.

I also don't believe that the best advice is offered free. I'm a web designer, and I charge for my services, I'm also confident that I will offer a better service then some guy who is doing it for free. Nothing is for free.

lynzpower

Nick

How can debt matters categorically state that it will be accepted? Surely the creditors are the only ones able to make that decision