Advice/thoughts needed please, DMP or IVA

NaughtySpot

Sorry for the "straight in to it post" but I need some advice and this seems the place to get it.

We (hubby and me) are in debt crisis. We have our LBM and know we need to do this, the problem is we are getting conflicting advise.

We owe £47000 on unsecured debt; three loans and three credit cards as well as an overdraft. I have been in contact with the CCCS and they have advised a DMP that will have this cleared in 8 years (or sooner if we can increase payments as and when).

My husband works for a large company and as part of his perks he gets access to debt counselling if required. He contacted this counsellor (who turned out to be a solicitor), I did a debt remedy on the CCCS website.

The solicitor has recommended a IVA, and after some research on here I am not convinced this is the best thing. I phoned the CCCS and asked for advice on this, and the very nice lady I spoke to also didn't think it was a good idea.

We do want to pay off our debt; I am not looking for the slate to be wiped clean and do not want to possibly have to remortgage our house in the fourth year as the CCCS lady said we may have to with an IVA.

My husband phoned his solicitor to say thanks but no thanks but was told we were making a mistake and he asked to meet us and go through it in greater detail. I feel he is thinking of his referral fees and not much else, but hubby is having doubts about the DMP now.

What say you all?

Thanks in advance.

Tixy

Hi

It sounds like they may just be thinking of the massive fees they would earn on an IVA - they will make thousands out of it.

Has husband asked them why they think an IVA is more suitable than a DMP?

How much equity do you have in the house now? How stable are you incomes?

Have you had a read of - IVAs are they worth it?: Free guide to download and print

NaughtySpot

Hi Tixy thanks for the reply.

Apparently the solicitor said it would be better for us as it would be a shorter term and we would pay less in the long run. I'm not sure I agree with either points after doing some research.

Thanks for the link; I had looked at that before and it did make me think IVAs aren't the magic bullet he was saying they were.

Equity wise I'd say we have about £15000 in the house now but if house prices start to rise again who knows how much there will be in 4 years. I would say both our jobs are as stable as they come these days so we are lucky in that respect, although I have no opportunity to earn more ATM. Childcare fees should be reduced a bit too in 18 months if the pre-school voucher scheme is still running then.

MrsTinks

If you do let him come round do make sure you ask him what exactly his fees or payment would be for an IVA... I'd love to hear if he stumbles at all on that minor point Also arm yourself with all the concerns you have about an IVA vs DMP and make a note of his answers and we can tell you if they're rubbish or not
Without looking at your SOA it's hard to say if an IVA is a good move or not, but if CCCS are saying not then I'd be inclined to go with their view - they're as impartial as they come. The point is that an IVA is a legally binding agreement, a DMP is a voluntary arrangement with you and your creditors. It's far more flexible than an IVA and a lot can change in 4 years...

NaughtySpot

MrsTine what criteria would make an IVA a good option in your opinion?

I know I should post my SOA but I am emotionally rung out tonight (it's been a tough day) but I have done my budget with the CCCS so know where I'm going with things. The problem is this has been a long time coming so a lot of outgoings have been already cut to the bone!