DMP or IVA advice needed

SPM87

IVA does not work in the interest of the debtor... hence why those creditor funding so called "charities" keep promoting them

ManyWays

So the plan at the moment is to default on debts, reassess in a year and in the meanwhile make affordability complaints, isnt it?

That should clarify things and then later possibly consider an IVA if the DMP isnt going well , so there doesnt seem to be any point in discussing IVAs in detail at the moment

fatbelly

After fees it would be more like 10p, even taking into account the extra year.

I've seen them given.

SPM87

"if the DMP isnt going well " I dont understand this line of thinking tbh. A DMP can be as little as £1 per month in reality. If anyone is struggling to pay £1 per month then an all an IVA is going to do is assure they get made bankrupt and lose their house, because if you default to an IP they just bankrupt you 

fatbelly

It's about whether a dmp will clear the debt in the op' s lifetime.

There are a number of downsides to an IVA, and you have to be aware of them, even if they are most unlikely to occur. Which is why we are saying to do your research from reputable sources

SPM87

you don't seriously believe that once this debt is defaulted the OP will be needing to pay £113k all back? why the desire to clear the debt and in full to boot? for what reason once it is defaulted? from my research, knowledge and my own experience, most people once they get their credit file back start building up debt payments anyway all over again. What if he decides to just pay £1 per month for the next 20 years? even if he has 20 accounts that is literally £20 a month only. Most people will have had mobile phones paying more than that each month over the last 20 years alone and will do for the rest of their lives without even blinking an eye.

RAS

SPM87 said:

you don't seriously believe that once this debt is defaulted the OP will be needing to pay £113k all back? why the desire to clear the debt and in full to boot? for what reason once it is defaulted? from my research, knowledge and my own experience, most people once they get their credit file back start building up debt payments anyway all over again. What if he decides to just pay £1 per month for the next 20 years? even if he has 20 accounts that is literally £20 a month only. Most people will have had mobile phones paying more than that each month over the last 20 years alone and will do for the rest of their lives without even blinking an eye.

It is not helpful to the OP to hijack their thread. If you have issues, start you own thread.

SPM87

RAS said:

SPM87 said:

you don't seriously believe that once this debt is defaulted the OP will be needing to pay £113k all back? why the desire to clear the debt and in full to boot? for what reason once it is defaulted? from my research, knowledge and my own experience, most people once they get their credit file back start building up debt payments anyway all over again. What if he decides to just pay £1 per month for the next 20 years? even if he has 20 accounts that is literally £20 a month only. Most people will have had mobile phones paying more than that each month over the last 20 years alone and will do for the rest of their lives without even blinking an eye.

It is not helpful to the OP to hijack their thread. If you have issues, start you own thread.

this is incredibly important to the OP to understand these points actually.. 

Bronvahl

I would not do an IVA, you have already been the victim of massively irresponsible lending, why take on another not fit for purpose arrangement probably arranged by a charity that is getting a commission. No thanks.

This site hosts a great supportive community, that is why you can self manage any DMP.

If you can get a fixed rate mortgage that is your best bet, the longer the better, at least five years if not even longer.

Then you have three alternate choices

1. Change your jobs to much higher paying six figure incomes

2. Use the equity in your house to get into property with the likes of Touchstone Education but read the 1 star reviews on Trustpilot first.

3. After getting long mortgage you stop paying all of them and DMP them, it is unsecured debt, if they threaten Court then so be it, at least that may need to be your attitude.

4. Continue being a slave to this debt for the rest of your life

There is huge scope to cut your spending, just moving your mobile to Lebara 80p a month for 9 months then spasu and then back to Lebara would reduce your annual mobile cost from £300 to £13.80

Dumping the BBC TVL, taking £20 a month broadband, getting cheaper insurance, not buying clothing, cutting back on energy and using cheapest rates out there will save you hundreds more.

This is not your fault, it is irresponsible lending, but ask yourself what have you got to show for all that debt?

Did it go on possessions or lifestyle that you simply could not afford.

If you ever lose everything you will realise that none of these things are worth it, not the lifestyle, not the coffee culture at nearly £5 a shot and not the material possessions, for the latter there is Freecycle, all you need is the ability to collect the item promptly.

There is no Judgment here, we have all done it, all fallen for the ads, the promises and the BS, well done you for drawing a line under it.

fatbelly

One reliable (independent, impartial free) source of information is debt camel

https://debtcamel.co.uk/hard-choices/iva-dmp/