DMP or IVA how did you choose

Jon81

I do have equity in my property, but it's also shared ownership (not sure if that makes any difference) as far as I know there's no issues work wise for me with having an IVA if that's the option I choose. Haven't considered br as though you'd automatically loose house?? Still weighing up the options but interesting how people arrive at their decisions

sourcrates

Jon81 wrote: »

I do have equity in my property, but it's also shared ownership (not sure if that makes any difference) as far as I know there's no issues work wise for me with having an IVA if that's the option I choose. Haven't considered br as though you'd automatically loose house?? Still weighing up the options but interesting how people arrive at their decisions

Just do your research well before you make a decision, as you have a property then BR not an option, an IVA will disappear from your credit file 6 years after it was first registered, at the same time you would be removed from the insolvency register as well, after which it's as though it never existed.
How much is your debt if you don't mind me asking ?

Jon81

sourcrates wrote: »

How much is your debt if you don't mind me asking ?

Unfortunately £48,000

sourcrates

Jon81 wrote: »

Unfortunately £48,000

Ok, similar amount to me at my worst point 😒
With that amount of debt I think an IVA. Would work best for you, you don't want to be re-paying for ever, it will get you down after 5+ years, maybe sooner, but it does depend how much you have available to throw at your debt, food for thought .

Jon81

sourcrates wrote: »

Ok, similar amount to me at my worst point 😒
With that amount of debt I think an IVA. Would work best for you, you don't want to be re-paying for ever, it will get you down after 5+ years, maybe sooner, but it does depend how much you have available to throw at your debt, food for thought .

Looking at around 200 per month so 20 years on DMP v.s 5 yrs and 0.25 / 0.30 in the pound. Leaning towards the IVA but we'll see really can't face the thought of hacking this down over 20 years although would hope it would end sooner than that

sourcrates

Jon81 wrote: »

Looking at around 200 per month so 20 years on DMP v.s 5 yrs and 0.25 / 0.30 in the pound. Leaning towards the IVA but we'll see really can't face the thought of hacking this down over 20 years although would hope it would end sooner than that

It's a no brainer to me that one 😉

January2015

DMP for me because an I would have had to declare an IVA to my employer (because of the work I do and the contract I have). I would not have lost my job, but I didn't want the embarrassment of my employer knowing my personal financial situation

Ellieseleven

We chose a DMP with 46k debt, the original time frame was 11 years but we have been able to knock several years off that and we are now looking at approx. 6 1/2 years. We did have a lot of equity in our house so we felt a DMP was the best option for us.

Wingco44

H Jon
I had a massive debt, far more than yours, and chose a DMP from a third party. They write all of the letters and have stopped all interest. It's wonderful and all the stress has gone.
The IVA would have really screwed us down and been more expensive. 6 years of IVA struggling or instant relief - for us, it was a no-brainer.
I'm not concerned that it will take 1000 years to pay off the debt because there was no possibility of paying it off at all before DMP.
How would you have paid off your £48K debt? It would probably be £50K now - it grows and rarely goes away except with BR, IVA or long-term with a DMP.
I just prefer the generous and relatively comfortable terms of my DMP. We budgeted for £400 per month for groceries/shopping which I understand is more than we would have been allowed with an IVA (?). We don't need even to spend that much now thanks to Aldi and Lidl.
We no longer get threatening letters (we used to send them to the DMP company anyway - usually without opening them).
Last week we had a Shop Card debt agency ask if we could pay £1100 of a £4500 debt in full and final settlement. We have been advised that offers like that will come in regularly from now on.
Two credit cards had £20K on them and I now pay £11 a month - they are 'happy'. I couldn't pay them off previously at £4-500 per month each, so it seems far more comfortable to have the debt not increasing and the payments actually bringing the debt down £11 per month as opposed to the interest being nearly the same as the monthly payment previously.
I've been told an IVA would have been far more strict/formal and would not have the flexibility I have now. We will realise equity in our 3 properties in the next 5 years when the mortgages end and we would have lost most of it under other schemes/plans.
It's all very personal but for us a DMP was by far the best option.
Barclays Bank opened a cash bank account and have been marvellous.

sourcrates

Wingco44 wrote: »

H Jon
I had a massive debt, far more than yours, and chose a DMP from a third party. They write all of the letters and have stopped all interest. It's wonderful and all the stress has gone.
The IVA would have really screwed us down and been more expensive. 6 years of IVA struggling or instant relief - for us, it was a no-brainer.
I'm not concerned that it will take 1000 years to pay off the debt because there was no possibility of paying it off at all before DMP.
How would you have paid off your £48K debt? It would probably be £50K now - it grows and rarely goes away except with BR, IVA or long-term with a DMP.
I just prefer the generous and relatively comfortable terms of my DMP. We budgeted for £400 per month for groceries/shopping which I understand is more than we would have been allowed with an IVA (?). We don't need even to spend that much now thanks to Aldi and Lidl.
We no longer get threatening letters (we used to send them to the DMP company anyway - usually without opening them).
Last week we had a Shop Card debt agency ask if we could pay £1100 of a £4500 debt in full and final settlement. We have been advised that offers like that will come in regularly from now on.
Two credit cards had £20K on them and I now pay £11 a month - they are 'happy'. I couldn't pay them off previously at £4-500 per month each, so it seems far more comfortable to have the debt not increasing and the payments actually bringing the debt down £11 per month as opposed to the interest being nearly the same as the monthly payment previously.
I've been told an IVA would have been far more strict/formal and would not have the flexibility I have now. We will realise equity in our 3 properties in the next 5 years when the mortgages end and we would have lost most of it under other schemes/plans.
It's all very personal but for us a DMP was by far the best option.
Barclays Bank opened a cash bank account and have been marvellous.

I really hope it's not a fee charging debt management company ?