what now?

[argento]

hi all,
quick history - my IVA was rejected by NR back in september, now in a debt management plan, still getting phonecalls, letters and NR securing their loan against my property. All good!!!
Anyway, yesterday I got a phonecall from one of my creditors (I won't say who) who told me that my debt will be passed on to a collection agency at the end of the month as the my payment through the DMP isn't enough. BUT, I was then told that if I am willing to settle the account they will write off HALF of what I owe, i.e owing them only £2500 instead of £5000!
I was offerred homeowner loans before I went for the IVA but wasn't offerred enough to clear my debt. What I want to know is, is it worth me calling my other creditors to see if they will offer me a lower settlement figure and then try and obtain a loan to clear all of my debts? If it's possible then this will surely be better than paying into the DMP for the next fifteen to twenty years with interest and charges still pushing up the balances. Does this make sense or should I stay with the DMP?
Help, please!

[MelanieGiles]

Well it doesn't cost anything to try, but if you are going to take out further lending to consolidate old debt, make sure that it is affordable. My gut feeling is that your credit rating may prevent further lending, but no harm in trying.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[argento]

thanks Melanie,
yes, i'm sure my credit rating will affect my chances but it is worth a try. I wonder, has anyone else been offerred this sort of deal to settle their debts or is it quite rare? Maybe it' sjust certain companies - who knows? The thing is, I've checked on loan comparison websites and gotten rough estimates of what I could borrow for the same repayments as I'm making through the DMP and even if all my creditors weren't willing to reduce the amount owed but some were, I still would be better off if I could settle what I owe through another loan as long as the repayments were within my income and expenditure.
p.s, just found out today through one of the comparison websites that my credit rating is FAIR. That's not as bad as I thought so maybe I am in with a chance of getting a faair deal on a loan.

[sonyse2t5]

Problem of DMP is like you have experienced, creditors change the rule book as they please..I hate that.

You are asking whether you should take out a consolidatpry loan to pay for debts, with some of the debts been written off. You might want to consult with your DMP company as they are guidelines about getting debt to pay for debt.

You credit file would be better than someone on an IVA.....credtors will enter satisfactory ratehr than defaults. So you can probably get a loan but consult.

I personally think it can be a vicious circle. If the other creditors know they might think you are acting preferentially....and be even more unpleasant. Consult your DMP firm before taking out consolidatory loans and watch the interest!!

[Cybus]

I personally think it can be a vicious circle. If the other creditors know they might think you are acting preferentially....and be even more unpleasant. Consult your DMP firm before taking out consolidatory loans and watch the interest!!

I believe from reading the opening post that argento is consulting all his / her creditors.

Argento, I wonder if your debt management company is deducting a 'Management Charge' from your monthly payments ?

If they are, then it may well be worthwhile you having a look around for one that doesn't. I would rather have every penny that you pay to them go to your creditors as opposed to having a management charge deducted. You will increase the amount going to creditors and decrease the term over which you will pay it.

Tell it like it is.