Debt Princess

Phillipa_3

I'm sorry I guess I'm just a bit of a girly girl! Nothing wrong with that. To be honest most of my debt is (sad to say) because I have lived beyond what I earned for so long. Shoes, clothes, etc and the people were very helpful but yes I'll get a second opinion.

I do hear what you are saying re: free advice and so on but I just want someone to sort my problem out in a fast and efficient way. From speaking with people today a bit more openly at work I think the key thing is that how the IP can negotiate with my creditors and process it efficently. If they make some money in the process thats fair enough, isn't it?

In fairness they did explain a variety of other solutions. They have Grant Thornton acting as their IP.

chevalier

Hi there
ref someone else managing it, that is exactly what CCCS and Payplan do. You sign an authorisation for them to act on your behalf. You do an statement of affairs (like we have been asking you to do for on here), and then any money over a month, they split between your creditors pro rata. You pay whichever FREE charity you go with, and then they send the payments out to your creditors. A Debt Management Plan is more flexible than an IVA. For an IVA to work you HAVE to pay the agreed payment, no matter what. If you don't then one of your creditors can make you bankrupt.

We look forward to working with you!
Good luck
chev

rayday2

The CCCS or payplan will do it for you with less pink and fluff!

There are other options to IVA which mean you can live a better lifestyle, you do realise that IVA is very near bankrupcy? I am on a DMP and yesterday was told I could get a good deal on a mortgage and after 3 years will be able to shop on the high street for one.

If you go the IVA route you could be stuffing things up for a long time please don't be caught out by a bit of tinsel debt is a dirty business - but you can get through it if you face it and go back to your lifestyle with wisdom.

TallGirl

Phillipa it is up to you what you decide however do "shop around". Grant Thornton do their own IVA's so that means the Pink lot is just referring you to them and taking a comminsion for doing it. Grant Thornton will be doing all the work and you will be the one paying for that with a higher fee for the IVA. Please also consider a DMP Payplan and CCCS do them too. Good luck.

jude47

Hi Phillipa

Everyone here is quite right - go to one of the debt advice charities, CCCS, CABx or National Debtline to see if an IVA really is for you. For instance, as an individual, the fee you would pay over the 5 year period would be £7,000 (£9,000 for couples). Your creditors get NOTHING for roughly the first 3 years, every penny you pay is swallowed up by fees. Also, if you own property, you would probably be required to re-mortgage to raise a lump sum in year 3/4/5 of an IVA (turning unsecured debt into secured debt - never a good idea) and finally - it only takes one of your larger creditors (i.e. one you owe a larger sum to) to refuse and the plan falls apart. Did Pink N Fluffy tell you any of this?
IVA's are probably only suitable for a small number of people and RayDay is bang on (as usual!) to say it's a short step from bankruptcy - if your IVA 'fails' your creditors can, and will, force you into bankruptcy.
PLEASE Phillippa, get an impartial second opinion - unlike Pink N Fluffy it won't cost you a penny, and could save you a fortune.

Good luck and keep posting!


Jude x

Phillipa_3

Hi thanks for the advice guys. Of course I will call others perhaps this evening and into the weekend but I think there is a lot of anger and to be honest the way my call was handled today was very open and it wasn't forcing anything (call for yourself as a guide as to their manner).

The reason I'm not happy with a Debt management plan is because the creditors can change things and ultimately could even sell my debt on. With an IVA it is a formal process and I'm in my 20's if absolutely no chance to get a mortgage with house prices as they are so the mortgage thing is irrelevant!

Each to their own I guess - there are a lot of companies offering IVA's Debt matters, Free direct etc and I'm not sure that someone taking profit is as bad as you make out. I tried CAB before hand and whilst they gave me solid advice ultimately with an IVA they have to use an IP and at some point some money has to change hands with somebody as nobody works for nothing.

I'll let you know how I get on...fingers crossed x x x

fermi

Hi Philipa

I wouldn't say so much anger, but a wariness because there have been many IVA companies set up in recent years who's advice has been criticised as not being in their clients best interests.

If this firm is indeed backed by 'Grant Thornton' then you should be OK (so I'm told). I don't think the amateurish and patronising website which is lacking in much useful info really inspired much confidence among us.

If you are getting other independent advice then that is great.:D

Phillipa_3

OK - Now i'm confused.

As I can understand things re: IVA I need to do a income/expediture statement now on that basis I have calculated roughly that I have around £200 per month free.

How will this change the terms of an IVA depending on the company I decide to use?

rayday2

Basically this company are going to be lovely to you they are going to make a lot of money out of you!

If you went with a charity run one all the money would go to the debtors none of it makes a profit for anyone.

Also to get good advice on an IVA you need to speak to someone who does not make there money out of it! It could be the wrong thing for you but they are not going to admit it they make a lot of money.

And honestly IVA are a very serious thing to consider I am assuming you are very young you sound a bit niaeve and scared to be honest. Do you know what the next 5 years hold for you? An IVA is a short step from bankrupcy that is a very serious thing to consider.

Please speak to the CCCS they come on this board or Payplan you will get honest advice you never regret from them and they won't make a penny out of you!

This company will make it sound so simple and easy but what if your circumstances change in the next 5 years and it goes wrong I think you find once they have your business they won't care and you could be in another crisis.

Dr_Hook

Phillipa wrote: »

OK - Now i'm confused.

As I can understand things re: IVA I need to do a income/expediture statement now on that basis I have calculated roughly that I have around £200 per month free.

How will this change the terms of an IVA depending on the company I decide to use?

Every IVA firm/IP will have their own idea as to what constitutes reasonable expenditure, though these are ultimately governed by creditors' voting habits so should be much of a muchness. Bear in mind that allowances for holidays, birthdays & xmas, etc are not (usually) included in an IVA.

DMPs are definitely a much less drastic course of action & one you should at least consider before entering an IVA.