4.4% inflation.......still going up.

[Emily]

I tell you, no one in an iva need to worry about creditors taking more of their extra income,I can see more variation meetings and iva foreclosures as those woefully inadequate CCC expenditure are making expenditure all unrealistic especially to families facing challenges in juggling household budgets

Bankruptcy may well have the last laugh as IVAs are dogged by the auspicious arrival of a long spell of rising prices returning less to creditors.

[indebtforever]

i agree it is to hit 5% the experts say.we all want more to live on its a struggle but most of these iva`s only get accepted nowadays with big dividend returns or even longer terms which you are seeing more now maybe its the norm now 72 months when iva`s were introduced the timescale was a maximum of 5 yrs then debt free if the living guidelines are raised too high i think creditors will be happier because at the end of the day they want a DMP were they are still in control and more likely to get a better return.

[janderson]

I agree, the issue of rising prices is a big issue that affects everyday life. The main problem with a DMP is it will only work if creditors freeze interest, otherwise all we are doing is paying the interest and not making any in-roads into the debt. If they are not more flexible then BRs will shoot through the roof. End result no one wins.

[size5]

To be fair, those creditors that reject IVA's in favour of DMP's DO seem to be playing ball at the moment regarding freezing of interest, otherwise, as you say janderson, it would be pointless really.

Regards.

[Emily]

Thats right, MBNA is one of the leading advocates of DMP and indeed they could reduce your debt to get you to do Dmp and literally stave out IPs fees and get a better return ...it is a business you know.....no offence to Ips....

There is a but to this, creditors cannot be trusted to keep to their word without legislation so an IVA is still king!