Hi all
I think probably half my posts here have been about trying to convince people of the value of making token payments in getting creditors off your back.
As far as the creditors are concerned it's the difference between a 'can't pay' and a 'won't pay' and is about the only thing they understand.
As most people seem to find telling them about your lovely 'proposed' IVA has little effect and is largely ignored till it actually happens.
I'm starting to wonder if it can actually have a negative effect as creditors scrabble to secure any remaining crusts before the drawbridge is drawn up.
It still concerns me that there are IP's out there are telling people not to do this. Obviously there is no fundamental problem with it, if there was I'm sure Melanie would not have recommended it above as an IP herself. I'm sure this must either be because;
1) They want to make sure every last penny goes via themselves, or,
2) They can't be bothered to explain to people the difference between token payments and other payments which may result in preference, or have to deal with any consequences.
If you are in a situation like Tracy above it is just not sustainable to pay nothing and I think Tracy you are absolutely right to do it if you can afford to whilst you try and get things sorted out.
Janeys situation shows what a nonsense the whole thing is - she was actually making DMP payments HIGHER than the level of the IVA. Hopefully Janey your DMP payments reduced your overall debt level and hence your monthly IVA payment, but I think in reality it is more likely to have just increased your creditors' dividend.
As Andy mentions above if you do do it is important to make a single pro-rata monthly payment and NOT make ad-hoc payments when they ask as it just encourages them.
-Best
Please view my blog at
www.go4broke.blogs.iva.co.uk
'6 years sticking my head into the Lion's mouth of debt !'
