What Debt help would people recommend?

Jfk126cars

I'm just wondering if people have dealt with either?

Jfk126cars

17 years paying dmp or 5 years on a Iva. The debt i have is 25k and on a dmp will only be paying 130 a month. Obviously being dept free after 5 years would be great but just worried about being on an IVA. I don't own my own home

Thanks

Grumpelstiltskin

If  you don't own your own home then do not touch an IVA with a  barge pole unless you are in a financial job that forbids insolvency.

Do not believe ads you see on social media, for starters if you can't remortgage after 5 years you have to pay an extra year.

Also £25 K is too low to consider an IVA

Grumpelstiltskin

The Debt Advice Service only want to sell you an IVA.

See what I have said on your other thread.

ManyWays

Stepchange

Do you own a car or have a car on finance? if on finance, when does it end, and is it PCP or HP?

Are you private renting, it is almost impossible to get a new tenancy in an IVA unless you have a guarantor.

How affordable is £130 a month, will you need to get that reduced when council tax, energy, water etc all go up in April? DMPs are flexible, IVAs only have a limited amount of flexibility and many of them fail, leaving you back with the debts and an insolvency showing on your credit record.

ManyWays

Stepchange

If TDAS dont get you to sign up for an IVA they will refer you to a DMP firm that charges you fees for the same DMP that StepChange would provide with no fees, so the StepChange one will finish sooner.

fatbelly

There are a number of organisations that will help without charging a fee. Stepchange are one. Others are:

Citizens Advice
National Debtline
Moneyhelper
Payplan
Christians Against Poverty
Community Money Advice

fatbelly

25000/17*12 = £122.

If that is genuine, you should look at bankruptcy.

But it is not clear that you have had proper advice or properly researched your options.

If you want to post a statement of affairs we can help more

https://www.lemonfool.co.uk/financecalculators/soa.php

Jfk126cars

ManyWays said:

Do you own a car or have a car on finance? if on finance, when does it end, and is it PCP or HP?

Are you private renting, it is almost impossible to get a new tenancy in an IVA unless you have a guarantor.

How affordable is £130 a month, will you need to get that reduced when council tax, energy, water etc all go up in April? DMPs are flexible, IVAs only have a limited amount of flexibility and many of them fail, leaving you back with the debts and an insolvency showing on your credit record.

We have a car on pcp in my wife's name, renting is through council, atm I'm paying nearly £850 a month which is not sustainable so 130 is alot better. I've spoken to 3 different debt help and 1 says DMP and 2 say IVA. Just doing Overtime every month to keep up and be at home less is not sustainable.

Jfk126cars

ManyWays said:

If TDAS dont get you to sign up for an IVA they will refer you to a DMP firm that charges you fees for the same DMP that StepChange would provide with no fees, so the StepChange one will finish sooner.

Stepchange we're one of the ones recommending an IVA

Grumpelstiltskin

In the past few weeks we have found that Stepchange have been recommending IVAs when they are not suitable.

You do realize that you would pay the IVA company thousands in fees when there are no fees to a DMP run either by yourself or a charity?