Please help i need advise.

help83

Hi , please i would be very grateful if you can take time to read this and give any advise you may have on my situation. First of all i am a 25 year old living with my parents with no car, assets or savings. I have around 28,000 of unsecured debt plus i owe my parents 5,000 . I owe 10 different creditors with 3 already in default and 3 being sent to debt collection agencys. I have spoke to Pay Plan who have advised me a DMP would be the best option but what ive read so far an IVA would be a better solution. Are they just recomending a DMP so they make more money from me. Also should i tell the creditors who are constantly bombarding me particularly the ones in default or should i avoid them and just send letters to payplan as advised. I am very worried as the whole thing is causing great stress for me and worse of all my parents. Also will my employers be made aware of the situation at any time. Also will it be effected as some of the credit has been taken out in the past 3 months.your help will be so gratefully appreciated.thanks mat

postingalwaysposting

firstly you can only be the one who decides which debt repayment plan to use ~ ie iva/dmp. However many on here can advise you in your situation, if you can read this thread http://forums.moneysavingexpert.com/showthread.html?t=107280 and add your soa here we can all take a look... then once we know your debts and aprs we can all advise that much better...

you seem to have a huge amount of debt at a young age, dont worry you will be debt free, it may take a few years but you will get there welcome

Gemmzie

Hi help83

Firstly, Payplan are a charity so they make no money from you. If you are unsure about their advise, ask them why they have recommended a DMP over an IVA.

If you opt for an IVA then I think your employers need to be told if you work in certain types of employment.

What is the recent credit? Cards? Loans? Finance?

If you want you can post up an SOA and then if one of our resident experts pops in (Clapton is a good one) then they might be able to see why a DMP may be better for you

help83

Thank for your reply, below i have included a list of all debts. To be honest im not sure of exactly all the aprs.Natwest 2500 default 13%rbos 8000 default 7%morgan stanley 1800 17% over limit so charges incuringbeuchanan clark well 800 no interest as debt collection agencybarclaycard 1800 15% again over limit so charges being incurredhsbc 1200 15% over limit and charges incurredvirgin 2300 over limit and in process of being passed to collected companywelcome finance original debt 2000 6500 to be repayed including interest and insurance.money shop 250 Must be paid at end of week and i know charge high interst.think i have covered them all. I earn 15250 a year and earn around 1000 after tax each month.thanks

postingalwaysposting

help83 wrote: »

Thank for your reply, below i have included a list of all debts. To be honest im not sure of exactly all the aprs.

Natwest 2500 default 13%
rbos 8000 default 7%
morgan stanley 1800 17% over limit so charges incuring
beuchanan clark well 800 no interest as debt collection agency
barclaycard 1800 15% again over limit so charges being incurred
hsbc 1200 15% over limit and charges incurred
virgin 2300 over limit and in process of being passed to collected company
welcome finance original debt 2000 6500 to be repayed including interest and insurance
money shop 250 Must be paid at end of week and i know charge high interst

think i have covered them all. I earn 15250 a year and earn around 1000 after tax each month.thanks

better to read

help83

Thanks Gemzie for the reply, they said the reason is i would be accepted for an IVA due to the amount of available cash at the end of each month. I read it was a charity but wasnt sure if this was only half true, does that mean they take no fee and all money goes direct to the creditors.thanks

trying-very-trying

You'll find all the help you need here. As already posted Payplan are a charity, they make nothing out of your agreement. Have you applied for credit since you spoke to payplan, because if this is the case, you are not ready yet to deal with your situation! I don't mean to criticise, but you must be serious about tackling your debt, and what lead you into it, before you can resolve this situation. But rest assured you have come to the right plsace foir help and advice. You will need to post a full SOA for some serious advice, but you have meda a start, so welcome and good luck!

help83

No i havent applied for any more credit since and am ripping up the horrible letters from loan sharks offering me very high interest loans. Il be honest enough to say alot of the debt has been caused by over spending and alot done to gambling and when realising my situation a few months ago ive cut back but its just too late to resolve this myself as if i paid all creditors i would be paying more than my monthly wage.thanks

Gemmzie

help83 wrote: »

Thanks Gemzie for the reply, they said the reason is i would be accepted for an IVA due to the amount of available cash at the end of each month. I read it was a charity but wasnt sure if this was only half true, does that mean they take no fee and all money goes direct to the creditors.thanks

That's correct. If you pay £100 to Payplan your creditors get £100

help83

thats what i wanted to hear. In your experience do the creditors agree to the DMP's and do they carry on the with the charges and interest. Also what about the defaulted accounts.thanks

flaura

help83 wrote: »

Thanks Gemzie for the reply, they said the reason is i would be accepted for an IVA due to the amount of available cash at the end of each month. I read it was a charity but wasnt sure if this was only half true, does that mean they take no fee and all money goes direct to the creditors.thanks

So were you accepted for DMP or an IVA - ?

I was on a DMP with payplan my original payplan date to pay off was 2012 - as you'll see i am now debt free personally i couldn't have done it without the support of payplan -

tell the creditors you are dealing with payplan and forward on all correspondance - most creditors will back off once payplan get up to speed. There is no easier better soloution and payplan certainly have no "other plan" to recomend one thing over another -

i found it really helped me and took the pressure off me - I honestly couldn't have done it without them x