Spiralling/drowning in worry IVA/DMP advice please

Boss1815

Hi All, 

Apologies for the long post…..

I have been in a DMP with StepChange for almost 3 years, they have been so good to me I am ashamed to admit with the cost of living and my stupid mental health I have obtained more credit whilst in this DMP that I am unable to pay off, (I am currently on sick pay post shoulder op)

The new creditors are chasing me down for payment and I have cancelled my direct debits, but this is causing a lot of stress & taking a toll on my mental health as well as physical (my own stupid fault I know)

I am so glad to have found this forum before I make a stupid mistake and signing an IVA. I don’t have any assets and my total debt is around £12-£13k. 

I had a phone call/WhatsApp Thursday  and most of Friday with a company who have been very good at explaining things and understanding and patient with me and are saying an IVA is the best course of action for me and now I don’t know what to do?

This company is not a debt charity so will make money from this IVA I have since found out.

I have not signed anything but have sent all my information. I do not want to go on a insolvency register (something they never mentioned), I am finding it so overwhelming.

I have swallowed my pride and contacted Stepchange this morning and explained everything, (nervously still awaiting response)

The man from the company “helping” with the IVA is going to contact me this morning and I feel sick with anxiety and embarrassment as I don’t know what to say to him? The worry has ruined my weekend with my children, I know this is my own stupid fault. Can anyone offer any advice please? I have sent this company (sorry not sure if I can name them?) a message through WhatsApp saying I no longer want the IVA after seeking indep advice and want to go through a debt charity. Any advice please? Thank you.

Grumpelstiltskin

Yes name any IVA company who are only thinking of their profit and not of you. They deserve to be shamed for their actions.
Just don't panic nothing terrible is going to happen there will be a solution.

Boss1815

Hey, thank you for your reply & taking the time to read my long thread, 

Its Money Revolution via My Debt Plan, they have replied to my WhatsApp still saying the IVA is the best course of action for me & how he’s worked in debt management for over 10 years etc etc, but has said he would close my case down for me - so that’s one relief.

I’m so nervous to speak with Stepchange, I’m a grown woman of nearly 42 years of age I need to be brave I know & take responsibility 

Boss1815

I’m not wanting to bash any company, I’m just confused & worried about making the wrong decision 

fatbelly

Talk to stepchange. You would be crazy to do an IVA for that amount.

Are you a homeowner?

I checked the MR website. They are open about their fee of £3600 but info on other strategies is out of date

Boss1815

No I am not a homeowner, I own my car outright, it’s worth less then 2k and I have no savings, they did tell me this is what your monthly cost of the IVA will be etc etc but our fees are included in that, to be honest there was so much backwards and forwards with messages and phone calls i probably should have listened more.

Thank you for taking the time to reply, I will update once I’ve spoken with SC, I just hope they can help me to sort my mess out 

Boss1815

But I have since learned that they get paid by MDP for referring me etc (whatever it’s called - can’t remember sorry) 

fatbelly

Yes the hard sell is done by a 'lead generator' who collect their fee, refer you on, then wash their hands of you and turn to their next victim.

When you talk to stepchange, ask them how close you are to a Debt Relief Order. Fee £0.

Boss1815

Ok I will do, but I have sorted out my incoming and outgoings this morning (like I should have done last week) and with all debts included old and new & with bills paid I can afford to give SC £200 a month for my debt of £12-£13k, still awaiting initial response 

sourcrates

I think you need to take a step back, stop with the bad thoughts, and re-take control of this situation.

13k is not the end of the world, and you do not want an IVA, don`t engage with this company further, tell them by email you do not wish to proceed, and do not contact me again thank you.

There, that`s the ambulance chaser dealt with, now add the debts to your DMP, and stop worrying.

Fatbelly`s advice re-DRO is good, with a proper budget you might qualify for one.

Boss1815

Thank you,
I have spoken to said company and they have said they will close my case & I have now blocked.
I am still awaiting contact from SC (I know they’re probably busy) but as well as you guys (thank you) I have also had advice from Payplan who have also given reassurance about speaking to SC & if in the unlikely event SC don’t allow me to add the debt they would help me further with all debts.
I do feel a lot more relaxed this evening than I did at the weekend, sometimes it’s just a bit of reassurance needed when anxiety is through the roof so, again thank you. Can’t deny I am still some what nervous speaking to SC - but will update once I’ve spoken to them. 😊