what would be the best way forward?

[m24]

Hi, My Debts currently total £61000. I have consolidated my debts and joined Payplan. I am now pay over £500 per month up until the year 2018. My relationship is now in tatters, what would be the best way forward?

[Jo Rolland]

Hi

Have you discussed the possibility of an IVA with Payplan?

Also if you want to give a bit more information concerning your creditors, amounts owed and income and expenditure details we can advise you further. Also if you are a homeowner and how much equity you have in your property.

[MelanieGiles]

Why did Payplan not give you advice about an IVA as a matter of interest?

[luluj]

You have similar debt level to us....an IVA would conclude in five years, six years max and you would be then debt free and able to start over again....that is without building up debt again! If you are paying £500 a month now on DMP then why not try an IVA and pay this - that way you finish in 2012 and be clear!

[elizabethr]

Interesting that payplan suggested a DMP - I too spoke to payplan very recently as I am trying to see the best way forward. They didn't mention IVAs at all!!! - I am still in the "do I need to" or "can I manage" stage!!!

[MelanieGiles]

It is interesting to note that the so called charities do not appear to be offering the full range of solutions, even thought they have IVA practices in house.

I interviewed someone today who had been advised to do a 37 year DMP (he would have been 84 by the time it concluded!) by the other so called charity firm. He has decided that a five year based IVA is probably a better way forward.

[Adam Davies]

Hi
I wonder how widespread this is ?
How can a debt charity not discuss an IVA ?
Regards

[OPTIMIST12]

When I contacted CCCS at the start of 2007 they sent me leaflets setting out the pros and cons of each option- DMP / IVA / BR. All very informative and completely unbiased to any particular option.

Just my own experience!!!

[outofpocket]

we went into DMP with cccs were paying £975 a month never offered a iva. stayed with them for 6 months hounded by creditors. they would of got most of there monies back but hey we now pay a fee of £10,000 so the only loser really is the creditors.

if i could only pick the winning numbers on saturday lol

[vad921]

Interesting that payplan suggested a DMP - I too spoke to payplan very recently as I am trying to see the best way forward. They didn't mention IVAs at all!!! - I am still in the "do I need to" or "can I manage" stage!!!

When I first approached lloyds Tsb re reducing my payments on a credit card they said they only do this through an approved company and that was Payplan. I suspect the banks get more back through companies like Payplan than they would through an IVA!

[MelanieGiles]

They actually fund those companies to do the collection work for them. Whether they get more money back after they have paid the companies for doing the work is uncertain.

[vad921]

They actually fund those companies to do the collection work for them. Whether they get more money back after they have paid the companies for doing the work is uncertain.

..but it would at least explain the less favourable terms!

[Reviva UK]

In my humble view debt management only works for a very few people.

It is not a formal "Guaranteed" solution and the creditors can change their mind at any time.

I personally use debt management programmes as a holding pattern while option A is being prepared - i.e. a house is sold to release funds for settlement, a promised payrise arrives, or change of circumstance expected.

In my mind it is better to bite the bullet and get it resolved so you can get on with your life. £500 pm for ever is a huge commitment and will probably haunt your relationships for years to come.

You can set up a DMP yourself but I also believe you get better results when you take out the emotion by employing someone to do it for you. It also gives the creditors some peace of mind that your circumstances have been reviewed and check and are rlatively accurate.

Hopw it helps