Final and full IVA

Nenusia

Hey everyone, I am hoping you would be able to help me please. I got 11k in debt however my loan of £8500 has now got a default since early July ( made last payment in June,). I was trying to get my debt sorted and reached out to Money Wellness Group, which I found out about as PayPal sent me an email on how to manage debt. Now MWG is offering me a final and full IVA which sounds too good to be true. To have my debt written off, I would need to withdraw all my savings in Moneybox saving account (set up way before I started to struggle financially). All together I got about 3k (after penalty of 25% will be deducted). After reading MSE forum and reviews for Money Wellness Group, I am more confused than before. Any help would be appreciated. Thanks 😊

Grumpelstiltskin

For such a small amount of debt do not touch an IVA with a fifty foot barge pole.

It is not the correct solution.

Go over to the Debt Free  Wannabe board for us to help you with the best solution.

RAS

Please go over to the DFW forum and read the newbie's stickie. 

This really isn't a good solution to debt already defaulted.  How much do you have left over when you've paid for everything? 

Nenusia

As I don't pay anything towards my loan, I got around £100 left each month. Sometimes less

RAS

Well the way to sort life out is to live and then pay what you can towards your debt.

First things first.

Is your bank account with anyone to whom you owe money? If so, you need a new basic bank account or something like Monzo.

You also need a separate saving account like an Instant Access ISA into which that £100ish goes.

You may not have paid since June but unlikely it's actually defaulted. Probably you've had a letter telling you that you've defaulted on the debt? Unless it's Amex or a credit union?

Nenusia

I got a separate account just for paying rent and utilities. Loan is with Lloyds Bank same for one of the credit cards but I don't have a account with them anymore. Default on loan has been arranged directly with Lloyds Bank over the phone