I was thinking this morning, wouldn't it be nice (or scary) to know how much interest you have actually paid all your creditors over the years against the actual amount of money you borrowed.... Loans are very straight forward as they provide it when you take the loan out, but...
Overdrafts - I know they are variable as you have money going in and out, but should banks provide some real world examples of what it will cost you over time.
Credit Cards - we're all told that store cards are more expensive, but are they really? they normally have a higher percentage per month payback and thus go down quicker, so should credit card illustrate better what your long term costs are going to be?
Just a thought really as I'm sure I have easily paid in interested 10 times what I borrowed, it would be nice if that could then be used in your IVA settlement [:)]
Whats your thoughts?
Approved 3rd June 2009 first payment made on the day.
Offer made and settled - happy days
76.5k debt creditors:- Northern Rock, MBNA, Barclaycard, LloydsTSB and Capital One
You and others would be shocked and devastated to learn just how much this is!!!
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
That's something I would really rather not think about![:D]
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
This is the only problem with a DMP - you are not guaranteed to have interest and charges frozen.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
well I was talking to Cheryl at cleardebt today - brilliant lady and she said that looking at my debts if I went into a DMP my 18k debt would end up in 5 years at 43k!!!!!!!!!! Now that was really really scary...
Really - could David let us know how tht sum would be calculated. David is it your experience with your DMP clients that they end up owing twice as much after five years worth of repayments?
One of the reasons why we finally decided to try and seek an IVA was that we felt we had given repayments our best shot and despite some extremely large repayements being made, we still hadn't got any where!
At that point we felt that while it was our hole to get out of, the creditors have had more than their pound of flesh. Since realising that the original loans have been paid but we are still stuggling with the creditors very large 'icing on top', our guilt about making a dividend less than 100p in th £ is starting to subside!
MelanieGiles wrote:
Really - could David let us know how tht sum would be calculated. David is it your experience with your DMP clients that they end up owing twice as much after five years worth of repayments?
Cheryl said that would be if the interest on my accounts were not frozen and I was paying under the minimum payment. - which ofcourse I would be as I cannot meet the current minimum payments on everything
So was she talking hypothetically? Or with some experience of creditors who do not cease charging interest. If creditors generally do not continue to charge interest in DMP proceedings, which most of the DMP companies I work with tell me, then the comparision is a little misleading.
I would say hypothetically as I was never really looking at a DMP anyway as I know it would take forever for me to pay it all off at the amount I can afford.
MelanieGiles wrote:
So was she talking hypothetically? Or with some experience of creditors who do not cease charging interest. If creditors generally do not continue to charge interest in DMP proceedings, which most of the DMP companies I work with tell me, then the comparision is a little misleading.
It is quite simply a calculation that on the Mondo Matrix shows what is available for either an IVA or DMP over 60 months or 72 months or 84 months and even 10 years.
The calculation shows with the current interest charges made by the respective creditor each month and the payment pro-rated to each of them.
The calculation is also done withourt interest but reflects IVA charges and DMP charges.
Invariably much more either with interest not frozen (horrific!) to liabilities still due at end of 5 years and above.
This is then compared to IVA.
C'est la vie and more IVA's [:D]
Last edited by David Mond on Sun May 10, 2009 11:50 am, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
