Sorry to play Devil's Advocate but reading on here that CC companies are unlikely to want to bankrupt you, why is it necessary to enter into an IVA as opposed to offering to pay creditors a few quid each month as an alternative to paying them nothing?
There is no guarantee that a Debt Management Plan will be agreed by all creditors, it is totally informal and they can still add interest and charges whenever they like. It also can take years to pay off.
An IVA is legally binding on both sides, they have to accept the payments, all charges and interest will cease, and a few years down the line you will be debt free.
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
kallis3 wrote:
There is no guarantee that a Debt Management Plan will be agreed by all creditors, it is totally informal and they can still add interest and charges whenever they like. It also can take years to pay off.
An IVA is legally binding on both sides, they have to accept the payments, all charges and interest will cease, and a few years down the line you will be debt free.
The CC companies usually do prefer IVAs as it's an alternative to bankruptcy assuming you are still with a reasonable income to continue to pay them an agreed amount each month. The other alternative is a DMP but that I think is more suitable to someone with a low debt who is struggling to pay however, it's not a legal agreement with them and they could turn and demand more, may not freeze interest and there is no protection from them. This method of payment could last for longer than an IVA.
One of the forum experts here will probably explain better the pros and cons depending on you debt situation.
