Iva or Dmp

Shookt38

sourcrates said:

"Some" credit unions may resort to legal action sooner rather than later, they tend to be more litigious that mainstream lenders, nothing for you to worry about on the other side of the world.

Hi, 

is this even when you are on Dmp? Transave union and MCB is a credit union. Apparently, transave has some partnership with my workplace. 😓

Shookt38

Getting very anxious at the moment. I just received from my other workplace that they are cancelling my shifts as they don’t need.😓 

RAS

Can you find any other temporary shift work? 

Shookt38

RAS said:

Can you find any other temporary shift work? 

I do have. Also i need to travel far which makes me spend more money. I dont have a car. Only the husband does. At the moment, even his is being cancelled. 😞 he cant find work anywhere nearer too. 

That is why im resulting to having to go dmp. Coz everything seems to be not working now. Im afraid and stressed. 

Grumpelstiltskin

Look back to basics, if you can't afford to pay your debts stop paying them, it is that simple.

Shookt38

Grumpelstiltskin said:

Look back to basics, if you can't afford to pay your debts stop paying them, it is that simple.

I started cancelling Dd on my natwest and moved my salary to another. Im trying to still move my utility bills and insurances too. Did you say i need to continue paying credit unions again? 

DankVielen

Shookt38 said:

Hi! I am new to the community and badly needed help and support. 

I work as a part time NhS staff and then my husband and I share a LTD company for agency nurses. Last year was really good but agency shifts nowadays have dwindled down to none. 

I am in need of advice if I go with Dmp or Iva. I spoke with payplan and SC. Payplan offered straight out of the bat IVA. SC is dmp. My accumulated debt is about £85,000. Poor financial choices, maternity leave and also emergencies happened through out the years. I haven’t missed any payments ever. But i am worried as there is less work for me now that agency nursing is dying. 

My husband and I are also moving out of the country to start a new job. How will this affect us if i go with dmp or iva? 

Help please!😫😫😫😫

You started this thread on 6th June 2025 and it has been quite a journey.

A few thing that may not have been covered

1. It is the intention of the lenders to get you to a place where you can afford to service the debt (with interest) but will really struggle to pay it off.  They will have all kinds of zero percent offers, typically at 3.5% or so.

2. In my opinion the lending industry (if we can call it that) thrives on irresponsible lending.

3. The money they lend you never existed in the first place, they did not work for it as you do, they did not borrow it from someone as you do, they did not inherit it or make it as a capital gain on investments.  They literally invented it on their computer, they paid a kind of insurance of 3% to the Central Bank as a way to regulate their debt ratios.

4. When they default they will send you a letter saying the agreement is terminated, they sold to debt to a debt consolidator, interest is frozen and you must now pay them.

5. They typically sell such debts for 3p to 12p in the pound, most at the lower end, yet despite this you are expected to pay the full debt.

6. They sell the debt so they get paid 3% by you on a balance transfer and 3% on sale, that covers their payment of 3% to the central bank. All interest after that is profit.

7. They sell the debt to make their own debt ratio profiles look squeaky clean, the moment they sell it they are allowed to lend the same amount to the next person.

8. The debt consolidator is nobody to you, they never lent you the money, they are just leeches, they will appoint a debt manager company who will assign debt collector after debt collector every 3 to 6 months, all can be ignored until the moment they decide to actually take you to Court which is extremely unlikely except perhaps for credit unions. You might be able to pay them with your emergency fund that you create from the payments to the others that you no longer make.

So £2550 was their initial cost yet if you calculate the interest rate once they have excluded you from zero percent offers as your credit score is overloaded (from irresponsible lending) you will come up to something like below, it is a sobering amount, enough to buy a house in some parts of the country, to service debt that never existed.

---

Making the minimum payment of: The greater of 4% of balance or £500.

This £85,000 debt will take 16 years and 2 months and cost £170,745 in interest at 39.9%

---

Making the minimum payment of: The greater of 4% of balance or £500.

This £85,000 debt will take 10 years and 0 months and cost £65,989 in interest at 24.9%

---

Of course you will pay lower rates of interest at times but this is offset by you borrowing again

You can calculate it yourself at the link below

https://www.moneysavingexpert.com/credit-cards/minimum-repayments-credit-card/

Why am I telling you all this?

Simply because you said you did not want to do a runner, you felt bad, but you have no reason to, they have bled you dry for most of your adult life.  I started out with a debt closer to £90,000, I originally intended to get an offer of 60% off, but they took their sweet time and by the time they did offer it I decided to go all in and paid nothing, not a penny. 

I do not feel bad about it because they made plenty of interest over the years and all of the things I bought with the money was paid to the people I was buying from.  The only losers are we the debtors, UNTIL WE WISE UP.

Do not worry about CCJ's, only one consumer debt company came after me and that was their business model, I rode that out to, so 11 years of them getting zero.

It is their greed that got them zero, they could buy debt for 3% and sell it for 40% but they are so greedy that they try to fool people into paying something that they can generally ignore.

Try to get a friend to agree to let you use their address for correspondence, before you default log into the portals and change your email and phone number to a £1 PAYG SIM and a different email address, if there is no portal simply inform the lenders that due to spam and scammers you have had to change your email and phone number. 

Do not answer calls from number withheld or any number you do not know (i.e. that does not appear in your contacts.  If it is anyone important they will leave a message, later you can withdraw their right to contact you via phone, text or email, so paper only and they will only pass on the new number and email.

As others have explained, unsecured debts are civil matters, nobody has a right to enter your home, even if someone got a CCJ they can't come into your home by force.  Never engage with anyone and they will soon get bored.

Take your new job and enjoy your new life.

Shookt38

DankVielen said:

Shookt38 said:

Hi! I am new to the community and badly needed help and support. 

I work as a part time NhS staff and then my husband and I share a LTD company for agency nurses. Last year was really good but agency shifts nowadays have dwindled down to none. 

I am in need of advice if I go with Dmp or Iva. I spoke with payplan and SC. Payplan offered straight out of the bat IVA. SC is dmp. My accumulated debt is about £85,000. Poor financial choices, maternity leave and also emergencies happened through out the years. I haven’t missed any payments ever. But i am worried as there is less work for me now that agency nursing is dying. 

My husband and I are also moving out of the country to start a new job. How will this affect us if i go with dmp or iva? 

Help please!😫😫😫😫

You started this thread on 6th June 2025 and it has been quite a journey.

A few thing that may not have been covered

1. It is the intention of the lenders to get you to a place where you can afford to service the debt (with interest) but will really struggle to pay it off.  They will have all kinds of zero percent offers, typically at 3.5% or so.

2. In my opinion the lending industry (if we can call it that) thrives on irresponsible lending.

3. The money they lend you never existed in the first place, they did not work for it as you do, they did not borrow it from someone as you do, they did not inherit it or make it as a capital gain on investments.  They literally invented it on their computer, they paid a kind of insurance of 3% to the Central Bank as a way to regulate their debt ratios.

4. When they default they will send you a letter saying the agreement is terminated, they sold to debt to a debt consolidator, interest is frozen and you must now pay them.

5. They typically sell such debts for 3p to 12p in the pound, most at the lower end, yet despite this you are expected to pay the full debt.

6. They sell the debt so they get paid 3% by you on a balance transfer and 3% on sale, that covers their payment of 3% to the central bank. All interest after that is profit.

7. They sell the debt to make their own debt ratio profiles look squeaky clean, the moment they sell it they are allowed to lend the same amount to the next person.

8. The debt consolidator is nobody to you, they never lent you the money, they are just leeches, they will appoint a debt manager company who will assign debt collector after debt collector every 3 to 6 months, all can be ignored until the moment they decide to actually take you to Court which is extremely unlikely except perhaps for credit unions. You might be able to pay them with your emergency fund that you create from the payments to the others that you no longer make.

So £2550 was their initial cost yet if you calculate the interest rate once they have excluded you from zero percent offers as your credit score is overloaded (from irresponsible lending) you will come up to something like below, it is a sobering amount, enough to buy a house in some parts of the country, to service debt that never existed.

---

Making the minimum payment of: The greater of 4% of balance or £500.

This £85,000 debt will take 16 years and 2 months and cost £170,745 in interest at 39.9%

---

Making the minimum payment of: The greater of 4% of balance or £500.

This £85,000 debt will take 10 years and 0 months and cost £65,989 in interest at 24.9%

---

Of course you will pay lower rates of interest at times but this is offset by you borrowing again

You can calculate it yourself at the link below

https://www.moneysavingexpert.com/credit-cards/minimum-repayments-credit-card/

Why am I telling you all this?

Simply because you said you did not want to do a runner, you felt bad, but you have no reason to, they have bled you dry for most of your adult life.  I started out with a debt closer to £90,000, I originally intended to get an offer of 60% off, but they took their sweet time and by the time they did offer it I decided to go all in and paid nothing, not a penny. 

I do not feel bad about it because they made plenty of interest over the years and all of the things I bought with the money was paid to the people I was buying from.  The only losers are we the debtors, UNTIL WE WISE UP.

Do not worry about CCJ's, only one consumer debt company came after me and that was their business model, I rode that out to, so 11 years of them getting zero.

It is their greed that got them zero, they could buy debt for 3% and sell it for 40% but they are so greedy that they try to fool people into paying something that they can generally ignore.

Try to get a friend to agree to let you use their address for correspondence, before you default log into the portals and change your email and phone number to a £1 PAYG SIM and a different email address, if there is no portal simply inform the lenders that due to spam and scammers you have had to change your email and phone number. 

Do not answer calls from number withheld or any number you do not know (i.e. that does not appear in your contacts.  If it is anyone important they will leave a message, later you can withdraw their right to contact you via phone, text or email, so paper only and they will only pass on the new number and email.

As others have explained, unsecured debts are civil matters, nobody has a right to enter your home, even if someone got a CCJ they can't come into your home by force.  Never engage with anyone and they will soon get bored.

Take your new job and enjoy your new life.

Hi, 

That was quite an eye opener for me. Reading what you have posted. Thank you as I am learning from the forum. People have been very helpful to me so im grateful for this community. 

As per changing my email, can I just put them to spam folder? 

Is it also needed for me to ask a friend to receive my mails? Or is it still okay to have my address? 

What would be the implications if i kept my home address and same phone number?

as of the moment, I am only paying the credit union so I can finish them earlier. 

Shookt38

Grumpelstiltskin said:

Look back to basics, if you can't afford to pay your debts stop paying them, it is that simple.

Hi, 

does this affect renewal of passports etc? Ours is not due yet but the kids will have to renew soon 

RAS

There is no credit check when passports are renewed.