www.iva.co.uk

Hi could someone please help me I am torn between IVA and debt management. I have one company telling me IVA is best for me and another telling em to go for debt management. I really dont want to loose my house at the end of the 5year stint as I am only a 50% shared ownership. Please help me as I have to give an answer sooner rather than later and i am starting to feel the presure !! HEEEELLLLLPPPPP thanks ange

Hi. a lot will depend upon your level of debt. If you are confident that your payments under a DMP will pay off the loansd within 6 - 7 years and that the creditors WILL stop charging interest for the whole period, then a DMP might be an option.

However, a DMP isn't binding and creditors can back out and demand payment, add charges and interest at any time. They will still default your credit file and those defaults will remain there for 6 years after you have paid off the debt.

An IVA is legally binding on both sides, the creditors cannot back out and cannot add interest or pursue you in any way. Whatever you haven't paid back at the end will be written off. And, no, they should not visit and sieze goods

I would suggest you have a word with a few companies, those purporting to be free (regarded widely as charities) will more than likely prefer the DMP initially as that is really their bag and what they are very good at. Have a look at www.iva.com and speak to a couple of firms there. It's free and without obligation.

Great advice by foggy ...advice from several companies may help to make a more informed decision.

With an IVA you are guaranteed to be debt free at the end of the term so long as you continue to pay each month the set amount.

With a DMP, interest can be added, and in some circumstances depending on your level of debt it may take years to clear it and sometimes it never goes away.

Give www.iva.com a go and speak with several companies.

who have you spoken to so far Angela?

Paul

I would talk to another couple if I were you and not proceed with anything until you're 100% sure.