Am I making the right decision?

ET12

Hi all! New here, looking for advice and everyone seems very helpful. Basically I currently have just under 10K debt across various creditors including an overdraft. I contacted a company (Money Advice) who told me of various options and initially I thought an IVA sounded like a good idea. However I've now been in touch with an IP and been given the proposal, but I'm wondering if a DMP might be more suitable for my circumstances. I don't have assets to protect (we rent, don't have a car). I don't mind being on a DMP for longer than an IVA would be but felt a bit pressured by IP when I asked if DMP might be better option for me.

Partly too we would like to start saving a bit of money for trips and such and but it seems on an IVA any 'extra' money I have would have to go to that?

Any advice would be greatly appreciated 

Thanks!

RAS

Unless you've got assets to protect, and debt over about £25K, an IVA is a bad idea.

And it is a bad idea to use any company for debt advice.

Speak to one of the debt charities. For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.

Links snaffled off sourcrates sig.

ET12

Thank you RAS. To be honest I thought they were a similar charity at first, it's only with a bit of time to consider I've realised they pushed me a bit much towards IVA, and everything seems to be moving a bit fast for what it actually entails. I'll make sure to speak to Stepchange.

Thanks again & Happy New Year

sourcrates

They say it themselves on their website -

"Money Advice specialises in Individual Voluntary Arrangements (IVA`s)"

So the "advice" you get will be tailored towards an IVA, as that is what they mainly sell.

There are only 3 regulated debt solution's in England & Wales currently, they are Bankruptcy, IVA, and DRO.

You also have the informal arrangement provided by the debt management plan.


Bankruptcy and Debt Relief Order`s (DRO) both have fixed fee`s, and are not big money maker`s, however the fee`s for an IVA can vary considerably, and unfortunately regulation is sadly lacking where they are concerned.

You tend to get debt management companies popping up all over the place wanting to sell them to you, just to make money from the fee`s charged, even though an IVA may not be the right debt solution for your circumstances.


IVA`s were originally designed for homeowners. With an obvious asset to protect, they could not go bankrupt, so needed to find another solution that allowed them to keep their house, so under these circumstances, an IVA can be a good choice, but if you don`t have a house to protect, then another option will probably work better for you.

From your opening post I would suggest looking at debt management (via a free debt charity) or maybe the possibility of a DRO (see if you fit the criteria).

Good luck.