DMP v IVA

missindependant

Morning All

I wasn't sure where to post this!

I have just spoken with Payplan who have recd my details from National Debtline as I was wanting to begin a DMP.

I have £20k of debt and I thought a DMP would be perfect for me, been on the forums and it seems like a good idea dealing with your debt in a way that is manageable.

I got the feeling that Payplan were pushing me to go for an IVA as opposed to a DMP saying I would be debt free faster and my credit rating would be better quicker and with less hassle than a DMP.

Does anyone have any thoughts or advice? I really thought I had my mind made up re DMP and am now not so sure!

I'm going to look up the pro's and con's this weekend but wanted to ask my fellow DFW of their experience and what you chose to do in the end?

Any help is greatly appreciated!

Thanks x

CLAPTON

whether a DMP or IVA or whatever is suitable depends upon your circumstances
so we would need your SOA and other details
are you a property owner?
are your circumstances likely to change over the next 5 years?

Tixy

Hi

I would say if you are seriously considering an IVA then do contact various different IPs before deciding who to use. As well as Payplan I would suggest CCCS and another IP. There seems to have been a few cases of people thinking payplan were pushing an IVA when the customer didn't really want one - I wouldn't rule them out but just get other advice as well.

Have you been through your figures with Payplan and have they/you come up with a figure you could afford to a DMP each month?
How secure do you feel your income is? as well as that consider how stable is your current situation etc? (eg if you were planning on having children within the IVA period then this may affect your ability to meet the IVA repayments - meaning it might fail, whereas as the DMP is informal you have more flexibility).

Have you had a read of this IVAs are they worth it?:

As to your credit rating - both are likely to wreck your rating for 6-6.5 years (it is possible it could be longer with a DMP if a creditor took you to court later on in your DMP but this is not that common).
Long term (after 10years+) an IVA will have more impact on your credit worthiness as you legally have to declare an IVA for the rest of your life if asked.

GeorgeUK

Do you own a property?
Are you struggling to meet the minimum payments, or have you already defaulted?

Payplan_company_representative

missindependant wrote: »

Morning All

I wasn't sure where to post this!

I have just spoken with Payplan who have recd my details from National Debtline as I was wanting to begin a DMP.

I have £20k of debt and I thought a DMP would be perfect for me, been on the forums and it seems like a good idea dealing with your debt in a way that is manageable.

I got the feeling that Payplan were pushing me to go for an IVA as opposed to a DMP saying I would be debt free faster and my credit rating would be better quicker and with less hassle than a DMP.

Does anyone have any thoughts or advice? I really thought I had my mind made up re DMP and am now not so sure!

I'm going to look up the pro's and con's this weekend but wanted to ask my fellow DFW of their experience and what you chose to do in the end?

Any help is greatly appreciated!

Thanks x

Hi missindependant

Glad you finally got your call. We would only suggest an IVA to you if we thought that it would be something that would be beneficial to you. Of course at the end of the day it is completely your decision and if you would rather do a DMP then that is completely fine. You need to do something that you are comfortable with.

If you have any further questions about it then let me know.

Thanks
Lizzy.

Pink-Angel

missindependant wrote: »

Morning All

I wasn't sure where to post this!

I have just spoken with Payplan who have recd my details from National Debtline as I was wanting to begin a DMP.

I have £20k of debt and I thought a DMP would be perfect for me, been on the forums and it seems like a good idea dealing with your debt in a way that is manageable.

I got the feeling that Payplan were pushing me to go for an IVA as opposed to a DMP saying I would be debt free faster and my credit rating would be better quicker and with less hassle than a DMP.

Does anyone have any thoughts or advice? I really thought I had my mind made up re DMP and am now not so sure!

I'm going to look up the pro's and con's this weekend but wanted to ask my fellow DFW of their experience and what you chose to do in the end?

Any help is greatly appreciated!

Thanks x

Hi Missindependant,

It's not easy when faced with these decisons is it? I have the same amount of debt as you. I'm with CCCS and when I contacted them with all my info I was offered two options - IVA and DMP. I chose the DMP. I liked the idea of being debt free after 5 years and possibly not having the pay back all my debts with the IVA but not the thought of the long term implications. I opted for the DMP because a) I ran up the debts so I wanted to try my best to repay them and my financial situation might improve which means I can pay the debts off quicker, plus less long term implications once the defaults clear in a few years. And b) I felt that for me this was the best solution because I knew if (heaven forbid) my financial situation got worse there would be the option of the IVA to fall back on. If you decide to start out with a IVA and things get worse financially so you can't make the minimum payment, then the next step would be bankruptcy.

As has been said, there is some excellent info on IVAs on here to give you more idea about if you think it would be right for you. And also has been said, you can always talk to someone else, like CCCS, before you decide. CCCS have something on their website called 'Debt Remedy' where you input all your info and it gives you their advice. It's confidential and there is no obligation to go with them, it's just an idea if you fancied giving it a go over the weekend, as I'm not sure if they are open just weekdays.

All the best x

missindependant

Thanks all for your help.

I have decided to go with a DMP and am in the process of speaking with Payplan about getting it all set up. I expect a call in the next few days from a case handler.

In the mean time I am writing to my creditors with a token payment until it is set up.

I really hope that some (hopefully all) accept my offer of payment as I am really struggling at the minute to even meet the minimum payments each month.

What are peoples experiences in speaking with them when they call? Should I send a letter asking for all contact to be in writing? What are your experiences of this? I don't think I can handle the calls demanding payment...

Thanks again All

Pott5y

Well done on deciding to go down the DMP route. :T:T:T

Definately include a letter asking for all future correspondanceto be in writing and for them not to call you.

I would also mention in the letter that you are in the process of setting up a DMP with Payplan and that you will send them the information regarding your case number when you have received it and that you will be authorising Payplan to act on your behalf regarding all future correspondence with the debt.

If they do call just tell them politely that you are setting up a DMP with Payplan and you are writing to them informing them of this and that you will not speak to them on the phone. They must only correspond to you in writing. Do not get drawn into long discussions or let them try and make you feel guilty... it is what they will try to do and beleive me they can be good at it. :mad: :mad:

Good luck with it all. Your creditors may get a little upset to begin with but do not let it worry you... They are just big mean bullies who have nothing better to do. :mad: