Welcome to the Individual Voluntary Arrangement (IVA) board.

The right people to go to...

The aim is to find non-profit debt counselling help, in other words a one-on- one session with someone paid to help you, not to make money out of you. Be careful not to confuse this with ‘free help’: many commercial companies say they’re free as you’re not charged directly, but you’ll still pay somehow.

Stop debt collectors harrassing you for 30 days

These non profit agencies are also the ideal people to go to if you're being harassed and bullied for payments by debt collection agencies.

An agreement between the Government and Credit Services Association, the body that represents debt collecting agents, gives new power that guarantees debt collectors won't contact you for at least 30 days, provided you've sought debt help.

The debt counselling service will inform collectors, who'll then give you a month's breathing space to get yourself on better footing.

The places we'd suggest contacting are:

• Consumer Credit Counselling Service: Full debt help service. Link: CCCS Tel: 0800 138 1111 Opening times: M-F 8am-8pm
• National Debtline: Full debt help service. Link: National Debtline Tel: 0808 808 4000 Opening times: M-F 9am-9pm, Sa 9.30am-1pm
• Citizens Advice Bureau: Full debt and consumer advice service. Link: Citizens Advice or visit your local CAB centre (find nearest) Opening times: different for each bureau
• Christians Against Poverty: Debt counselling agency, which specialises in helping those who are emotionally struggling too. The religious focus is why they do it, not how they do it. Link: Christians Against Poverty Tel: 01274 760720 Opening times: different for each bureau
• Community Legal Advice (includes Housing Duty Scheme): Legal advice on a wide range of issues for those on benefits or a low income. The Housing Duty Scheme gives free advice by phone or at around 100 courts across England and Wales if you are in danger of eviction or repossession.
  Link: Community Legal Advice Tel: 0845 345 4345 (or text 'legalaid' and name to 80010 to get a call back) Opening times: M-F 9am-6:30pm, Sa 9am-12:30pm (from 4 Apr).
• advice4debtNI: This new government funded service offers free, confidential and independent phone and email advice to anyone in Northern Ireland on dealing with debt. Link: advice4debtNI Tel: 0800 917 4607 Opening times: M-F 9am-5pm.
• Local agencies: There may be a local debt help agency in your area, if so check it is non-profit or a charity, before signing up.

What they do to help

These counsellors use a variety of techniques. It could be simply negotiating with creditors to freeze your interest, you may be put on a debt management plan, where they negotiate with your creditors. You may be pointed toward an IVA (Individual Voluntary Arrangement), Debt Relief Order or even bankruptcy (not as scary as it sounds).

They will certainly show you how to prioritise the most important debts to enable you to keep food on the table and a roof over your head.

I know many people are nervous about going, and imagine it'll be like being in the headteacher's office at school, but they're not judgmental, they're not there to tell you off, just to help you sort out the problem. Talking to them may help you sleep at night.

Yet unfortunately the counselling services can be oversubscribed. If it takes time to get an appointment with them, use the info on their websites to start to plan.


The WRONG people to go to...

Avoid any debt help or loan consolidation companies that advertise on the telly or in some newspapers. Their job is to make money out of you, plain and simple. While in the short term their plans will make your payments lower, in the long run it'll cost you dear. Avoid them. Don't touch them. Don’t go near them.
I think this post from the Forum explains it better than I ever can:

"We, my wife and I, are on a seven-year plan with CCCS" (the Consumer Credit Counselling Service, one of my suggested agencies – Martin) "having recently changed from a commercial debt management company after hearing Martin on Radio 2's Jeremy Vine show. The simple action of swapping to the CCCS has shaved over two years off the length of our plan as the money we were paying the management company now goes to our creditors instead! Of course, that also means a financial saving of nearly eight grand over the term of the original plans 10 year period."

This includes IVAs and debt wiping companies. While they sound good, they're only for a few people. If either is for you the debt counselling agencies should suggest it.