Debt Princess

Dr_Hook

Phillipa wrote: »

If I only have £200 per month spare I don't really care if the creditors get £1 of that or £199. They are going to want me to pay £200 per month regardless.

There is an important difference between DMPs and IVAs - under a DMP you have to repay the debt in full (albeit with interest frozen if you're lucky), under an IVA whatever isn't paid at the end of the arrangement is written off.

Therefore, in an IVA how much of your monthly payment creditors get doesn't affect you - as long as you maintain the agreed payments you will be debt free at the end of the IVA (usually 5 years). In a DMP if you're paying £200 per month and creditors are only getting £150 of this, because you have to repay the debt in full, this will dramatically increase the time it takes to become debt free.

IVAs should not be confused with DMPs - they're completely different animals.

If a DMP is what you want/need you should never pay a fee for it - this is where Payplan/CCCS come in.

lemma1968

An IVA should never be regarded as an easy option - and could damage your credit for donkeys years to come.

I think an DMP is usually the better option if you have any spare cash each month as at least it gives you time to get back on your feet and its not got the same stigma as bankruptcy and IVA - but each to their own, and everyone must do what is right after taking professional advice on this.

SarahNeedle1872

Phillipa wrote: »

Hi Sarah, the thing that I concluded was that the only thing that matters is what spare money you have left over after you have paid for essential items. So if I have £200 per month left over then the creditors are going to want that regardless of who sets it up.

If I only have £200 per month spare I don't really care if the creditors get £1 of that or £199. They are going to want me to pay £200 per month regardless.

The important thing is the advice and care itself. You using the word "donation" is just "fee" by another name!!

But each to her own. I owe a great deal and rent my house so I have taken one route out of my debt. If sticking 50p pieces in a jar works for you then great. My point is that my debt is causing me stress and there is no room in my head for taking a caring attitude to my creditors in that!!

That's fair enough, everyone has their own way of dealing with it, only u know what is going to work best for u! And I sincerely hope that ur debt doesn't continue to stress u for too long, ur health is something money can't buy.

Take care

Sarah x

Baldrick2

Phillipa wrote: »

The notion that CCCS don't make a penny is simply not true. There seems to be several comments here that are very misguided. CCCS it seems specialise in debt management plans and when you push for information about that it becomes obvious that they take a fee from the creditors from doing so.

Having shopped around a variety of IVA companies then I am comfortable that the advice given was impartial and fair.

The one thing that I have discovered over the past few days is that there are many people who claim to be doing chariable acts or acting in a "not for profit" manner but frankly in most cases that is smoke and mirrors.

The many IVA companies may get a fee for doing so but it isn't something that you will be paying - its the creditors.

Phillipa
................. Do excuse me for being cynical but I've never seen a more obvious "mole" posting on behalf of their own company!!!!!!

We are seeing more & more of this (not just on decent supportive forums like this but also on so called "blogs" which are clearly no more than marketing tools for companies)

This is a serious forum to support people who genuinely need help not a "free sales pitch" for companies who take fat fees from people in debt.

Rant Over & apologioes to all the genuine people out there...... as stated by numerous people above, use the free services offered by CCCS & Payplan etc :T