DMP v IVA

cobalt59

Still considering taking out a DMP but the way I read it these are not legally binding and not all creditors accept them Why not go for an IVA which I take it are legally binding. From what I read, both totally screw your credit rating. Sorry if I seem a bit obtuse, but it's all new to me.

NorthernLas

Link to National Debtlines options on debts http://www.nationaldebtline.co.uk/england_wales/page.php?page=35_options_for_dealing_with_your_debts.

It explains the advantages / disadvantages of both DMP and IVA

podperson

While both will affect your credit rating an iva is a more formal solution so is seen by some to be worse. It depends on your circumstances really which is the best option for you.
On an iva you need to have a certain amount of disposable income a month to be able to offer to the creditors, also if you have any major assets such as a house or expensive car then these will be taken into account. While in an iva if your creditors have agreed to the amount they have to stick to it, which can be reassuring, but you also have to stick to it so is much less flexible and can cause problems if you have a change in circumstances.
Try contacting one of the debt charities such as cccs, national debtline, payplan or cab, they will be able to give more detailed advice on both options and which one would be best for you.