Five steps to solve your debts - yeah right!

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milliejon
milliejon Posts: 1,052 Forumite
in Debt-free wannabe
This is the title of an advert I saw yesterday from The Debt People. Out of interest, can anyone help please? The advert says "You can take advantage of little known Government legislation to write off up to 75% of your debts." Does anyone know what this is please?
DMP mutual support number 174
Total debt now (April 10) £0! - total paid off £30,221 or 100%
I'm now debt free after 6 years!!:j
Non smoker since June 2006 :j

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  • Emmzi
    Emmzi Posts: 8,658 Forumite
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    This refers to an IVA.

    Most people here would recommend Payplan or CCCS for an IVA (individual voluntary agreement) as opposed to the debt people, as they are registered charities. Links at top of the page.

    Points to note
    -it'll screw your credit rating for 6 years plus
    -you'll have a reasonable but not wild budget allocated to live on
    Debt free 4th April 2007.
    New house. Bigger mortgage. MFWB after I have my buffer cash in place.
  • milliejon
    milliejon Posts: 1,052 Forumite
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    Thanks Emmzi. Don't worry - I wouldn't go near them. I'm on a DMP which I've organised myself with the help of the National Debtline website. I just wondered what they meant about the Gov legislation. When they put it like that it's "little known"!
    DMP mutual support number 174
    Total debt now (April 10) £0! - total paid off £30,221 or 100%
    I'm now debt free after 6 years!!:j
    Non smoker since June 2006 :j
  • Emmzi
    Emmzi Posts: 8,658 Forumite
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    They just say that so you'll think they have access to a special magical pill no one else has heard of-all snake oil. I guess it's little known cos if you ain't in money trouble, you've no reason to know about it...
    Debt free 4th April 2007.
    New house. Bigger mortgage. MFWB after I have my buffer cash in place.
  • climbgirl
    climbgirl Posts: 1,504 Forumite
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    And these ads are exactly why HSBC has said they'll increase their required repayment on IVAs from 25-35p to 40p in the pound!
  • milliejon
    milliejon Posts: 1,052 Forumite
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    That was my first thought - just a lure (the swines!).
    DMP mutual support number 174
    Total debt now (April 10) £0! - total paid off £30,221 or 100%
    I'm now debt free after 6 years!!:j
    Non smoker since June 2006 :j
  • AGB863
    AGB863 Posts: 521 Forumite
    First Post First Anniversary
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    Emmzi wrote:
    This refers to an IVA.


    Points to note
    -it'll screw your credit rating for 6 years plus
    -
    It affects your credit rating for 11 years as an IVA lasts for 5 years and it would remain on your credit rating for a further 6 years.
    I am a debt counsellor working in the voluntary sector - we don't charge our clients for the work we do!
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