Am i doing the right thing?

DEBT_23

ok thanks everyone im going to ring CCCS now. post back shortly.

postingalwaysposting

DEBT_23 wrote: »

I was told of someone who is in a DMP that the charity ones work for the bank not me thats why they dnt advertise on tv
and that they will try and get more of the debt as possible that the companiers who work for us ? is this not right?

who should i contact then to arrange to clear my debts?

i was also told that as my debt is over 15k i have 3 debt creditors that i qualify ? do i not, im unsure as what to do now.

Debt charity are funded by the finance industry and are totally free. They have nothing to do with the banks they just help you and the banks/lenders come to arangements. They are the best ever service to use.

Iva's may not be the way to go they may suggest a dmp or even paying your creditors alone. Either way please go and speak to one of them, it will mean 100% of your repayment ammounts will go towards your debts.

Also pop your soa up here. Maybe with can help you with cutting back and upping your income so you have a bit more to pay your creditors and thus become debt free in under 5 years?

poorandindenial

If you want one that isn't funded by financial industry then go for CAB. The fee paying companies peddal this rubbish. MANY IVAs sold by these companies fail because they were missold, leaving the person in debt in a much worse position. Also remember - you owe the debt so there is no reason not to repay it all. With £200 a month for 6 years you can be debt free on a DMP with a charity if they are able to get the interest stopped (no guarantee of this but they have a better chance than a company). Not much longer at all.

If an IVA is genuinely better for you then the charity WILL recommend this for you.

CCCS_Sarah

DEBT_23 wrote: »

im 24 next week and figured if i didnt contact a DM company soon i will never be debt free... heres my story

at 18 ( young and stupid i know) i got 2 credit cards with Halifax £3000 limit on each... straight to the max , i also got a personal loan with Halifax for £7500, and also a personal loan of £5000 from Natwest..
at 19 i was out of college and work and defaulted on all 4 debts... after token payments, debt letters and avoiding telephone calls i have last week rang up a DEBT MANAGEMENT CO and arranged to clear it off. he says im looking at £200 p/m for 5 years and then im DEBT FREE.
if i had of done this sooner i could be debt free soon enough.

little downside tho i have been with lloyds tsb for 5 years and had a credit card with them tho i had 1k on it the had to include it onto the IVA which meant that this morning i had to go and get a basic bank account with a different bank and say goodbye to my lovely current account.. no more paying online or internet banking.. tho i did get myself into this mess.


i know i have done the right thing , im still young and have no kids im able to sort my credit out, i sometimes feel alone and peed off when i think of how stupid i have been..
i will be on here more often posting updates and gaining advice and words of wisdom. thanks all. x
nat

Hello and welcome to the boards,

Just been reading your thread. Before you sign up to an IVA please seek advice from a free charity i.e. CCCS, National debtline or CAB. They will be able to give you independent advice based on your circumstances – they are all non profit so wont just be after your money.

Have you got a financial statement you can post for us to look at? A financial statement would need to detail all your income and expenditure – from this we would then be able to see how much surplus you have left to offer your creditors.

If you need any help completing a detailed income and expenditure CCCS have a free online debt advice system called Debt Remedy – once you have inputted your income and expenditure the system will let you know exactly where you stand and the best way forward. This link will take you directly to Debt Remedy and it only takes a few minutes to complete and it’s free!

Deep_In_Debt

Debt_23, if your friend is on a DMP with a fee paying company, perhaps he/she should check out this forum and look into changing to a non-fee paying company where ALL the monthly payments go to creditors rather than a fee paying company taking their cut each month, thus taking longer to clear your debts.

The charities don't advertise because they are not out to make money but to work with you and your creditors to come to an agreement and you will have on going support.

DEBT_23

they think i shud go bankcrupt? on 18k... yeah like im happy to lose my home.

poorandindenial

DEBT_23, you could be forced into bankruptcy if the IVA fails (and to meet the repayments you have asid you will have to do overtime and cut back so a small blip and failure is very possible - what worries me is that you don't have much of a margin to play with).

Also if you sell while you are in the IVA then your debtors will take something like 75% of any equity in your house (up to the full value of the debts)

Check out the IVA guide I linked to earlier and make sure that an IVA is what you really want to do if ou are still planing on going down that route. Remember there is no guarantee that your creditors will agree to the IVA so you may need a Plan B.

DEBT_23

income £1200. basic.. -overtime i do when it suits just extra on top.

404 mortgage
120 secured loan
150 bills c-tax
80 car insurance
50 petrol

poorandindenial

There is quite a bit that you haven't factored in, things that you have that you need to use. If you use the template at www.makesenseofcards.com/soacalc it will show you the true picture

I just did a guestimate at some stuff you may have missed off and this was how it looked:

income 1200

mortgage £414
secured loan £120
council tax and bills £150
tv licence £11
car tax £20
car insurance £80
petrol £50
groceries £160
life ins £20
credit card 1 £60
credit card 2 £60
Buildings insurance £15
clothes and haircuts £10
birthdays and xmas £10
going out £50
Total £1230

Obviously I was shooting in the dark on these things and I probably haven't included everything. Also what is your mortgage situation, are you OK if the interest rates rise again.

Deep_In_Debt

A fee paying company (in fact, more than one,) recommended an IVA to me. I wonder why? Perhaps because they were going to be making money out of me. No other option was discussed. I'm on my own, take home £1,300 per month and pay all bills, mortgage and run the house on my own, plus running a car. My disposable income now goes fee free to my creditors. I'm about to be made reduandant from my job, so even now, I know an IVA would not have been suitable for me. The budget too tight and too inflexible.

My ex OH, who lived with me for years, (my house) was recommended an IVA. He had 40k debts and no job, no car, no...nothing??? Needless to say, he went bankrupt after 2 months on the IVA as he lost his job. It's the best thing that has ever happened to him, he's happier now (discharged in February) and even now takes me out on nights out (luckily after 12 years we're still great mates!) Well...he has more money than me now!!!