New member, large debt.. IVA or DMP

chalky1313

Hi, I hope I can ask for some advice here

I have £22,500 of debt with 5 creditors, 2 of which are loans 3 are credit cards.
Making the minimum payments on the c/cards, I'm still around £200 less a month below what I'm earning and I've tried to "fix" it with new cards or loans but it's just made a mess.

I spent an hour with the C.A.B yesterday and they have given me info on either an IVA or DMP.
They've "recommended" getting in touch with a free advisor for either option.

One of my main concerns is that I am in privately rented property at the moment and I have not defaulted on any payments, my credit score is over 950 with Experian, but I am looking to move property into another private rent and am concerned that it may affect the chance to move as a result of this.

Thanks in advance...

Depth_Charge

chalky1313 wrote: »

Hi, I hope I can ask for some advice here

I have £22,500 of debt with 5 creditors, 2 of which are loans 3 are credit cards.
Making the minimum payments on the c/cards, I'm still around £200 less a month below what I'm earning and I've tried to "fix" it with new cards or loans but it's just made a mess.

I spent an hour with the C.A.B yesterday and they have given me info on either an IVA or DMP.
They've "recommended" getting in touch with a free advisor for either option.

One of my main concerns is that I am in privately rented property at the moment and I have not defaulted on any payments, my credit score is over 950 with Experian, but I am looking to move property into another private rent and am concerned that it may affect the chance to move as a result of this.

Thanks in advance...

Hi

Welcome to the forum

Any chance of putting up your SOA?

Have you any potential PPI claims?

Is bankruptcy an option?

Just out of interest who is the free adviser that the CAB recommended?

Best Wishes

DC

chalky1313

Thanks

SOA I thought I had put that in the post, with the amounts.

No PPI that I know of, no.

CAB recommended PayPlan initially

chalky1313

My money situation is currently £350 left after food and essentials.

From that, I have £540 of debt to pay each month.

chalky1313

And there's £1200 ish to pay back to HMRC for unknowingly underpaid tax!

Depth_Charge

chalky1313 wrote: »

Thanks

SOA I thought I had put that in the post, with the amounts.

No PPI that I know of, no.

CAB recommended PayPlan initially

Hi

What you have put so far is not quite your SOA as such, the link below should help

http://www.stoozing.com/calculator/soa.php

DC

chalky1313

I see. Yes, I've done that with the CAB, went through the income I have and the outgoings.

They found nothing I could reduce which wasn't classed as essential, ie households bills and rent etc, along with food

They suggested that my leftover of £350 is a maximum as I hadn't taken out any costs for children's clothes, (I'm a single parent with 2 children), my own living and clothes and such like.

Does that give enough info?

Depth_Charge

chalky1313 wrote: »

I see. Yes, I've done that with the CAB, went through the income I have and the outgoings.

They found nothing I could reduce which wasn't classed as essential, ie households bills and rent etc, along with food

They suggested that my leftover of £350 is a maximum as I hadn't taken out any costs for children's clothes, (I'm a single parent with 2 children), my own living and clothes and such like.

Does that give enough info?

Hi

Interesting

Could you put up the SOA as it stands leaving the £350 using the stoozing link?

Info below from Shelter (England) on private renting that might help on one of your questions

http://england.shelter.org.uk/get_advice/private_renting

Best Wishes

DC

chalky1313

Thanks for the link.

Is the SOA needed? I'm mindful of publishing my details.

The CAB did go through all my outgoings very closely.

I'm just trying to find if I should go IVA or DMP if anyone has advice?

DorisTrousers

Whatever you decide is your choice, DC won't be recommending an IVA, so it will be DMP or BR from that standpoint. Whether that fits with you is a question only you can answer.

Payplan aren't free by the way, although they do not charge directly for DMP's, but I do wonder why the CAB have effectively sent you elsewhere? I thought they were there to help?

If they haven't allowed for costs that you have, then find someone that will.

As a general rule, BR is usually cheaper than IVA unless there are assets to protect, and IVA is usually cheaper than DMP unless you can clear the debts in a quicker time than 5 years, which is unlikely given the scenario you have posted.

IVA or BR looks to be your choice and good luck with whatever you choose to do. Speak to whoever you like, but run a mile from anyone who suggests a low contribution DMP, even a free one.

chalky1313

Thank you for that, it helps a lot.

BR.. Is that bankruptcy?