Am I making the right decision?

ET12 Forumite Posts: 2
First Post
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 



  • RAS
    RAS Forumite Posts: 31,934
    Part of the Furniture 10,000 Posts Name Dropper
    edited 31 December 2021 at 12:00PM
    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 : StepchangeNational DebtlineCitizensAdviceBureaux.

    Links snaffled off sourcrates sig.

    The person who has not made a mistake, has made nothing
  • sourcrates
    sourcrates Forumite, Ambassador Posts: 27,690
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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.
    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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