DMP vs IVA

mofopants

Hi All

I am currently in a DMP with payplan, paying almost £200 per month to my creditors. At the current rate I won't be debt free until 2022 and if I were to do an IVA I could reduce that to 5 years time.

Is has anyone else changed from a dmp to an IVA and if so, how have they found it?

here is a copy of my expenditure plan with payplan - i have based this just on my basic salary (i will work on commission from now on in and should bring home a few hundred pounds extra per month, but am only ever guaranteed my basic) I am trying to cut down on rent and get this pushed up to the £200 per month limit.
IncomeFuture IncomeClient's Earnings (net)£718.38£Total Income£718.38£ ExpenditureFuture ExpenditureTelephone(s)£27.50£Rent£462£Food£50.00£Clothing/Footwear£20.00£Dentist/Prescriptions/Glasses£7.50£Hairdressing£8.00£Total Income£575.00£Total Income£718.38£Total Expenditure£575.00£Available Surplus (Income minus Expenditure)£143.38£

RAS

Hi

You really really need to go to one of the free debt advice charities and talk through your situation with them, CCCS, Payplan or CAB. If you want to talk to smeone, then, there is also the National Debt line.

See the article at the top of the main DFW forum page.

Hodgehappy

My husband is into 3 yrs of a plan with Payplan paying £166 mth which is spread across all his debts, this will go on till the day he dies though the amount he got himself into debt for. We are to consider an IVA too soon as otherwise there will be no end in sight to all this grief. Only thing is we have equity in our home so understandably will need to release some of it after the 5 years is up to use as a final payment probably!

chevalier

The difference between a DMP and a IVA is that the DMP is voluntary. So you have some scope for varying the payment, up or down. The IVA is an official agreement. Whatever the payment you agree to you HAVE to make, no messing. If you don't one of your creditors can make you bankrupt and you can then lose assets you have.

The thing with the DMP is that your circumstances will change for the better no matter what. Your annual wage will go up a bit each year for example, and, as smaller creditors are paid off the amount you pay will the be distributred to the remaining creditors at a higher rate. There is the option, if you manage to save a sum, that some of your creditors will, after a couple of years of a DMP accept a full and final settlement from you of less than what you still owe. Because then they get some of their money NOW, rather than wait 10 years or whatever, getting their money from you in lower monthly payments.

chev

mofopants

Thanks for the replies everyone

I sometimes get impatient in paying off my debts, and I think i've been wrongly looking at the IVA as a quick fix. I might plough on with my debts as they are in my DMP and enjoy watching the balances go down!

RAS

Hi

I would support your decision. best of luck.

But more importantly, you could put up and SOA, and ask folk if they can see any saving s that you could make. Also haress our friend Chev who has a realy good list of survey and mystery shopping sites which could give you some luxeries in yuor life.

RAS

chevalier

Hi RAS you called?

Hi OP I now have an updated list as a kind poster showed me that some of my links weren't correct so here it is! These are the sites I use, but there are others.

www.lightspeedpanel.com - this is a survey site, where you get points which turn into vouchers (you choose). May not help with the cash flow, but the vouchers could be saved towards birthday/xmas or given as presents.

www.ciao.co.uk - survey site that gives money. A bit fits and starts ie no surveys for a couple of weeks, then three or four the same day.

www.yougov.com - again paid surveys. However takes a while to get to the minimum payout level

www.pigsback.co.uk - this is a points site, ie they give you points for buying things via their site. BUT you also get points for signing up for news letters (some of which are even interesting!), and also for clicking on adverts with pink borders. I have spent NOTHING with them but got a £10 voucher through this week (only been registered since January). There is also a thread in the freebies section, which gives you all the daily answers to the competitions so you can have a better chance of winning on them.

www.mutualpoints.com - another points for clicks site. You can also buy things via their site and get points too. For a long time, I just clicked the links in the emails they send you, and that gets you 5 points. At 3000 points you get £20 I think. You can do searches via their site and that gets you points too.

www.quidco.com - this is a cash back site, so very good, for checking if any potential new insurers (ie if you have checked your contents insurance say and found a new provider), are offering cash back. Eg Lloyds was offering £120 cashback on new policies at one point (the offers do change). You can also get small amounts of cash again for doing searches via their site. You can earn 52p a day by doing this. Every little helps.

www.greasypalm.co.uk - another cash back site, where you can do searches and get small amounts of money. But it all adds up. I think you can get about 50p a day on there for nothing. Minimum payout is £20 I think, but you can sign up to survey sites via there, and get extra money that way for nothing.

Are you in the correct banding for your council tax? Again there is an article by Martin on the main website about how to go about checking this. If you are in the wrong band and due a rebate, it is for all the year you have been living in the house since 1991, so this can be several thousand pounds back.

Hope this helps. Of course both you and OH can sign up to most of them (ie the survey sites), though I am not sure about some of the points sites. I know pigsback you can have two accounts at the same address, but some of the others only say one per household.

Best of luck
chev

yellowmonkey

Thanks for that. Have just joined them all. Not to sure how to earn money yet but will settle down later and study them.

ym