A company have approached us to take a debt management plan, we are paying all of our credit cards and loans, and havent missed any payments yet, however things are getting tight. We want to know how this will effect our credit file as we plan to change our mortgage in a year or so, is it better to have an iva?
An IVA will have an adverse effect on your credit rating for 6 years from the date of a creditors meeting and would therefore make it very difficult to re-mortgage, if you were able to at all the interest rate would oprobably be very high.
Speak to an IP and they will discuss all your option available to you to see if an IVA would be suitable. Visit www.iva.com for reviews on companies that specialise in this area.
Hi
Any of the three debt solutions wll have an affect on your credit file.
You should talk through each solution with the company involved
Many people are upto date with their credit payments before entering a formal or informal agreement but are using credit to pay credit. If this is the case then you will need to break that cycle as you are only getting deeper and deeper into debt
Regards
If you are just finding things a little tight at the moment, perhaps a review of your income and expenditure to see if economies could be made or your budget tightened would be a sensible first step.
I see many people on a daily basis who thing that they have a debt problem, but in reality the problem is sometimes one of just poor debt management, and with a few suggestions of cost savings, and shopping around for cheaper deals on things like telephone and other utilites, you can be suprised at how much you can actually save.
