been offered way out of debt, is there a catch?

homealone_2

i have seen on the tv ads for people struggling with debt and offering up to a possible 75% off your debt without getting another loan. from what i gathered you needed to be in full time employment, which i am not, so never gave it another thought. even though we are struggling to repay approx £20k on loans and £11k on credit card as i had accident 3 years ago and became disabled and on benefits, my husband does work full time but it is a struggle!!
WELL i gave just received a call from a company called IVM telling me about the government scheme to help people get out of debt by getting companies to freeze interest and write off up to 75% off, if you qualify for help. she asked me some basic details amount of debt?, amount of rent?, amount of benefits etc and said i would get a return call from an adviser if once they looked into my details they could help. i asked if this would then make me black listed or bankcrupt but she said no once debt was paid off i would be in same credit worthy position. as she said it is a government scheme it sounds too good to be true. have i missed a vital part of this plan or is it possible they really can help and get me debt free?????

matt4504

If it sounds too good to be true..... Then ignore it....

Basically you'd be having a IVA and your credit rating could still be changed.

immoral_angeluk

It sounds like she's talking about an IVA, which is essentially the step before bankruptcy. I don't know that much about them but you can get info from sites like https://www.payplan.co.uk and the CCCS

kathfisch

A company that phones to offer you something like this may well be charging a lot for the service! An IVA will always require a fee (as I understand it) but proper free debt advice and info about Debt Management Plans (and IVAs if appropriate) is available from

Consumer Credit Counselling Service
Payplan
National Debtline
Citizen's Advice Bureau

You really should get some free and impartial advice to decide what is best for you to deal with your debts.

Good luck

lynzpower

couldnt agree more.

IVas have huge start up costs and they are not guaranteed to be accpeted by your creditors. No matter what the salesman on the phone tells you.

If it was that simple, wed all be doing it!

homealone_2

matt4504 wrote:

If it sounds too good to be true..... Then ignore it....

Basically you'd be having a IVA and your credit rating could still be changed.

by this do you mean we would be affected if we tried to get future loans or credit cards? if so, thats not a bad thing as we dont plan on that anyway.
however, have just read we would need to disclose assets, we are at present trying to resolve money frauduenlty being taken out of a tracker isa which when is resolved could be worth as much as £5k. dont know what to do for best now?????

richardvc

"as she said it is a government scheme "

I think she means legislation not scheme - this is not a step to be taken lightly.

I assume they are a debt management company who take you down the road of an IVA (individual voluntary arrangement) which ends up with you paying them a chunk of your money that you believe is going towards your debts !! Parasites, that's all they are.

Please correct me if I'm wrong but with an IVA your credit rating would be hammered as you are effectively defaulting on up to 75% of your debt.

Piggybank_2

This definately sounds like an IVA -I spoke to one f these companies and no mention was made to the effect that it can be rejected or that the creditors would only be receiving 30 odd pence in the pound. I would rather all the money i am paying goes direct to my creditors thank-you very much!

CLAPTON

if you're struggling with your debts i would suggest you post a full SoA here and let people see whether they can help.

Xbigman

And IVA's for those who are not homeowners and with less than £300 free income per month have a high rejection rate and a higher failure rate. An IVA that fails means bankruptcy.
Regards


X

Donedoingdebt

As soon as you do not keep up with your regular contractual payments to credit cards or loans then your credit file will be adversely affected. DMPs, IVAs, bankruptcy etc will all be recorded on your credit file for 6 years from their start date. This will make it difficult although not impossible to get further credit during that time if you're prepared to pay sky high interest rates & charges etc.