IVA or DMP? Debts help urgently needed

barbara77

Hi,

I am new on the forum so hello everyone.

We are in a pickle as we have £23000 of debts. That is ncluding our loan, 2 credit cards, 1 store card + an overdraft.
We are just repaying the minimun payment each month which is just the interest. We pay £415 a month for our debts. We cannot afford more.My husband is on commision and each month is different. I count our budget on £1200 for him as he is on £15000/year and £550 for me. In total our income counting child tax credit and child benfit is £2175 and our expenses are £1962.Without couting the debts that is. Total left of £213 to repay our debts.

We have been struggling so i decided to fill the online form with cccs and they offered us an IVA or a DMP.

My husband and I always made sure that we always pay our debts even if we had to buy value everything just to keep our credit in tip top shape.

Earlier this month we tried to get another loan to repay our credid cards as the interest rate is too high but we both got declined.
So i checked our credit file and that is good the only pb is that we were not on the electoral roll as we recently moved in rented property. Moved in April but we thought that we didnt have to as we registered in the other property.



After all that we decided to do more overtime and to work harder to pay our debts off but a friend of mine suggested that Baines & Ernst Ltd for the IVA as she is with them and said they were great.


Did contact them and they say i had a 90% of succes for the IVA and asked me to give them £300 this month + 140 next month for their cost.
They were very keen and kept saying that they were here to help me.So i did give them the money.
They also asked me to cancel all my direct debit with creditors which i did.

The problem is that i spoke to my sister in law who told me that i really shouldnt have to pay for the IVA so i looked into it and i have now cancelled the agreement with Baines as i had 7 days cooling period.

I went back to cccs and clicked for them to contact me about the IVA.

The thing is how do i deal with my creditors now as i cancelled everything. Did buy £1 token as postal order to offer them and the letters ready telling them that Baines will contacting them with the reference but now i am stuck as i am not going with Baines.

Do i go for the IVA or the DMP?ow do i know if cccs can help me?Whot do i do about my creditors? Cant pay them in time now as i paid £300 to Baines and will get the money back friday which would be too late.

Any help would be fantastic please and sorry about the long e-mail. I tried to cut it short....


Thank you in advance,

SortingIt_2

Hello,

Sounds like you are in need of some good advice. I am not really to experienced in IVA or DMP as just waiting for a call back from Payplan to look into a DMP also. However thought I would post to bump this back to the top.

Also there is a DMP mutual support thread - maybe post there. I did when I was first considering a DMP and they were all fantastic!

Good luck x

clarab_3

Hi,

First of all, could I advise you NOT to go with Baines and Earnst, whatever you do? They are a profit making company, so there will be a "skim" for them in any payment you make through them - if you do choose to go with a IVA or DMP, you can either do the paperwork and arrange it yourself, or work through a recognised charity suc as CCCS or Payplan - that way all your payments go towards your debt.

Second of all, if perhaps you would consider posting your SOA, I'm sure of our resident experts who have been there before can prune you some leeway from your spending, or maximise your income?

Limana68

Hi Barbara
First of all- take a deep breath!!!!!!! You sound so stressed by it all, and I can totally understand as we are in the same position as you but owe 33K.
I am thinking of a DMP and its trying to convince my hubby thats the problem. He dosnt want our credit rating to suffer, however it suffered already as we have had to miss a few payments.
I think you did the right thing by kicking into touch B & E, as my brother was with them a few yrs ago, until he realised he do the same with Payplan for free.
I just have to muster the nerve to make a call to them now....at least you have done that!
Dont let the creditors bully you . Send them a token payment with a letter, there are sample letters on payplan web site until your payplan/cccs plan is sorted.

Good luck and let us know how you are getting on

Li xx

barbara77

Thank you for your replies. Will phone CCCS tomorrow after work. I just hate not paying my debts and i do feel awful. Really stressed out a bit about the whole thing and i am hoping CCCS will give me some help tomorrow as i really do not know what to do now,

Thank you all

In_Search_Of_Me

Just wanted to send a hug! Well done for sorting & for going through CCCS - cunning plan if ever there was one! At the end of the day its much better to be open & honest in dealing with it now rather than carry on as you are when you dont have the money and then get deeper into debt, from all sides! Lots of ideas on here for the sorting and saving so have a hunt round the site while you wait for your DMP to be sorted. Welcome aboard & good luck. Let us know how you are!

ash_bash_girl

Hi barbara77,

I am currently in IVA but it is not working!!
They promised me the earth but when i actually go to sell my house i could not get a mortgage even though debt free direct and abbey said it wouldnt be a problem!!

I contacted CCCS and bacause i am in a LEGALLY BINDING contract with DFD( ie IVA) there is nowt they can do.

I have debt with DFD for £35000 plus my house which is sold and a 2nd charge ie neg equity!

I am in the sh**

CCCS are in with DFD so do not go with them, they told me that they deal with them if debt free fails!!!!! and it is legally binding with DFD!

Go with payplan or the CBA! FREE advice is GOOD advice and they know!

PM me for further info as my case is too complicated to post again.

Regards

Ash