Hi my friend is on debt management and pays roughly £60 a month to them. She has no job and just claims child benefit and tax credits and when started the debt management was on these. She has recently had another baby and so in effect gets double the money now. Will she have to pay double on debt management now. She seems to think no but im sure they must review each yr like an IVA does? Also do creditors stop interest on debt management as I thought they are advised to but don't have to so in effect if you think your debt will finish in say 5 yrs it may not because of the interest added? Just worried about her as we have just finished IVA so know whats it like etc etc
Hi, as Andy rightly advises a DMP is more flexible. However, you're right in saying that although some creditors do stop interest others don't and it could be the debt can sometimes grow. It won't necessarily finish in 5 years, some posters on here would have been a very long time in their DMP had they not changed route to the IVA.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Hi. Do you know the level of debt involved here ? With the sort of income you have mentioned, if your friend has no assets and the debt is under £15,000 a DRO might be worth looking at, subject to her meeting the criteria.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Unless the debts are quite low £60 will be getting her nowhere especially if the firm is deducting a fee. She should speak to an IP firm as there may be better options for her.
