Should I get an IVA at 22?

Tamarind13 Forumite Posts: 1 Newbie
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
    mwarby Forumite Posts: 2,044
    Part of the Furniture 1,000 Posts Name Dropper
    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
    sourcrates Forumite, Ambassador Posts: 27,641
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    No, no, 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.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- The "provit letter" is here-
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