IVA

moneysaver12

Hi I’m currently on a debt management payment plan with step changes, it’s going to take over 11 years for me to pay back 16000.  I’m not sure whether to apply for an IVA instead.  Is this a bad idea?

Grumpelstiltskin

moneysaver12 said:

Hi I’m currently on a debt management payment plan with step changes, it’s going to take over 11 years for me to pay back 16000.  I’m not sure whether to apply for an IVA instead.  Is this a bad idea?

Basically an IVA for £16.000 is not on, you would pay many thousand in the IVA companies fees, for an IVA to be viable you need to have debts of £40.000 ish and a mortgage.

Have you been across to the Debt Free Wannabe board, competed a SOA and asked for advice?

moneysaver12

Grumpelstiltskin said:

moneysaver12 said:

Hi I’m currently on a debt management payment plan with step changes, it’s going to take over 11 years for me to pay back 16000.  I’m not sure whether to apply for an IVA instead.  Is this a bad idea?

Basically an IVA for £16.000 is not on, you would pay many thousand in the IVA companies fees, for an IVA to be viable you need to have debts of £40.000 ish and a mortgage.

Have you been across to the Debt Free Wannabe board, competed a SOA and asked for advice?

Thank you.  It sounds like I’m better off sticking with the debt payment plan.  I haven’t but I will look 

fatbelly

£16000 over 132 months is around £120 per month

If we could drop that by around £10 per week you would be in the range for a DRO, which is free, and done and dusted in 12 months.

Do you own property or an expensive car?

Grumpelstiltskin

Yes go across to the Debt Free Wannabe board and bare your soul on there, you will get the best advice for your situation.

moneysaver12

fatbelly said:

£16000 over 132 months is around £120 per month

If we could drop that by around £10 per week you would be in the range for a DRO, which is free, and done and dusted in 12 months.

Do you own property or an expensive car?

Hi thank you.  I’m currently paying 103 a month it was a bit more than that originally.  I have a car on finance that will end September 2028 and it’s probably worth around 16000 now less than i paid for it.  I part exchange my old car and then got a 15000 loan from a car finance company.  I need my car for my job and to get my son to school 

ManyWays

I have a car on finance that will end September 2028
At that point you will be able to increase your DMP payments by the car finance monthly payment, have you taken account of that when calculating 11 years?

Or you could save up the car finance payment amounts when they end and use them to make lower settlement offers to the DMP debts. Have many of them been sold to debt collectors?

Or you could ask the debt collectors to produce the CCA agreement if the original debt was a loan or credit card, if they cant it is unenforceable in court so you can simply stop paying.

Or if the DMP is fairly recent you can look at affordability complaints about the debts may reduce what you owe.

Or you can make a claim for the refund of commission for your car on finance (and any previous ones too), see https://www.moneysavingexpert.com/reclaim/car-finance-undeclared-commission/.

So there are a lot of options that may speed up your DMP but most of these don't work in an IVA.
 

fatbelly

Yes I think the way forward for you is a dmp with a few bells and whistles.

Follow Grump's advice, go across to the Debt Free Wannabe board and post a soa