Should I get an IVA at 22?

Tamarind13

Hi all, this is my first time posting so bare with me.

I’ve accumulated just under £8000 in personal debt in the last four years. I’m starting to feel overwhelmed by the several different payments every month, and rising interest costs. At the moment my total monthly repayments are just over £300.

I have spoken to some agencies who have offered IVAs varying from £100-£120 a month for the standard 5 years.

I do not know whether to go for an IVA or look into other methods like a balance transfer card or a DMP.

If anyone can advise me that would be great, I’m struggling to see the cons of an IVA, and I feel like I’m being pushed into that one direction.

mwarby

Some potential cons
- the IVA payment isn't fixed, so if your circumstances improves you may end up paying back more. This can be more than original debt due to fees
- your credit history will be severely affected for 6 years
- you will need to disclose the IVA for rest of life if asked, it is generally asked for things such as mortgage
- you can fail the IVA if circumstances change for worse, or if you stop cooperating
- 5 years repayments vs max 3 years in bankruptcy

Many would say 8k is rather too low for an IVA

sourcrates

No, no, no......you don’t have enough debt to even consider an IVA.

IVA’s are meant for homeowners who have many, many thousands of pounds worth of debt, but can’t go bankrupt due to their assets.

They are trying to sell you this IVA, as they make money on them, trust me, it is not suitable for you, go to stepchange and ask about a debt management plan, that is most likely the path to take, forget an IVA, it will be the worst mistake you could make.