Alternative To IVA ???

[stevem35]

Hi everyone...

I've spent today working out my figures etc ready to give to my IP next week. I've been on Experian credit report site to get the amounts i owe etc..While i was there i checked my credit score and found it to be 999 out of 1000 which is described as excellent. I pay all my bills/debts on time every month without fail but due to having to take a lower paid job recently i have nothing left to live on.
I was wondering if one of the experts on here could tell me if i may have an alternative to IVA as i don't want to lose such a credit score if it can be avoided.

Hope someone can help...Many Thanks Steve

[Viki.W]

Hey Steve, I'm certainly not an expert but I do know I had a brilliant credit rating right up to when I decided to look into an IVA. I was drawing money out of one credit card to pay the minimum on another. My outgoings were more than my incomings and I was eventually going to run out of credit. This is why I chose this route.

Can I just ask why you were thinking of the IVA in the first place? Are you really insolvent? If you are then your going to lose your good score anyway if you were to do a DMP, BR or IVA. If you are not insolvent then the IP should recognise this and maybe suggest another route.

Melanie is at a wedding today but Andy might advise you so hang in there. Viki X

[Adam Davies]

Hi Steve
You could negotiate lower payments direct with your creditors or enter into a debt management plan.Both will be less hurtful to your credit file than an IVA as this will devastate your file as an IVA is seen in the same light as bankruptcy
Regards

[stevem35]

Hi Viki
Thanks for the reply....Lets just say what you've described in your 1st paragraph is exactly what i have been doing for the past few months...I now have 1 card left with some credit on it but that will run out soon.
Always helps hearing someone that has been in exactly the same position.Even more so in your case...Thanks...Steve

[Viki.W]

Hey Steve, sorry I think I gave you duff info on the DMP, I didn't know that it wouldn't be so bad on your credit history as Andy says. How much debt are you in and how much disposable income do you have? Andy may be able to give his views on whether an IVA or DMP would be best. Viki X

[stevem35]

Hi Andy
Thanks for that...Its a big help...Think i might see if i can go down that route 1st.... Thanks Steve

[plasticdaft]

The thing is with a dmp you could be in it for years so your credit rating may be less duff than under an IVA but will be less duff for longer,if you see what I mean.

Given your situation I would imagine that 6 years without credit sounds like a mission impossible but you cant live on borrowed money forever,sometime you have to pay it back.

[stevem35]

Hi Viki
I reckon my unsecured debt totals 30 odd thousand..As i said i do manage to pay all of these but end up using credit card again to live on. Steve

[Lisa2009]

The biggest disadvantage of a DMP over an IVA is that in a DMP you do not have legal protection and your creditors are free to start adding interest if they want to, whereas they cant in an IVA.
It will mean you are paying much more over a much longer period of time.

[kallis3]

The only thing with a DMP is that everything will show as being in default (at least mine did). Wouldn't think you would be able to get any more credit with that.

[plasticdaft]

Steve, my credit rating was also 999/1000 but I didnt have a brass bean to my name,just lots of credit cards and 2 unsecured loans which I couldnt pay coz I had juggled my credit card balances around for so long that they were all maxed out having been used for petrol and shopping etc,no foreign holidays just for living costs. If you just think that both IVA's and DMP's are tools by which to rid yourself of your debt,but one could take forever and the other is over a fixed period of time,one can freeze interest while the other cannot,it really isnt a hard decision to make as to which is a better course of action. I really wouldnt worry about your credit score,coz credit is something you are going to have to learn to live without.

Good luck.

[kallis3]

I'm not bothered about my credit rating because I don't want any credit ever again!

[Viki.W]

Me neither.........EVER![xx(] X

[stevem35]

Gr8 replies Viki and Jan... Here Here!!!!! [8D]

[OPTIMIST12]

Steve -

You state that you now have nothing left to live on and are down to one credit card with some remaining credit. You use that to live on.

Excuse me - but could there be ANYTHING less important right now than your credit rating??? You know as well as I do that unless you bite the bullet and go for ONE of the big three debt solutions you will just sink deeper and deeper into debt oblivion

IVA / BR / DMP - you decide!!!!

But please wake up - I know I used to think I was OK just because I could meet my minimum monthly payments!!! It just ain't so!!! The sooner you go for one of the above options the better. If you are living off your credit cards then your credit rating should mean absolutely zilch!!!

Good Luck!!!!

(I have deleted my first sentence as it sounded like I am having a go at Steve which is certainly NOT my intention!!).