Further to previous threads where I've been proceeding with an IVA with Payplan, I've had some good news at work where I've been given a promotion.
I've informed Payplan of this and am waiting for details on the financial implications. I suspect I'll now have around ~£250/month more to pay into my IVA, and am close to the territory that a DMP may be a better option, given that I'll get various bonuses throughout the life of the IVA too. Initially my proposals say I'd pay ~£400 rising as my student loans are paid.
My question relates to the likelihood of getting Interest and charges frozen for the following debts:
MBNA (CC) 18,242.78
Egg (CC) 5,116.14
National Westminster Bank (overdraft) 2,400.00
National Westminster Bank (Loan) 3,344.75
National Westminster Bank (Loan) 13,222.30
Total: £42,325.97
Any thoughts on new options? I'd like to have some opinions before I go back to Payplan.
With MBNA being a major creditor, and with a DI now of circa £650, I do not believe that an IVA wuld be accepted. MBNA have a policy of rejecting all IVAs where you can demonstrate you can pay all creditors in full over a 10 years period, assuming no DMP charges or ongoing interest. Payplan will be well aware of this.
The problem with going on a DMP is that interest and charges can be frozen but there is no guarentee that they will stay frozen for the whole time you are repaying your debts.
You could always get payplan to try a dmp for a while and see who freezes what,and then opt for an IVA at a later date(if companies start applying interest again). Both options blot your credit file for 6 years anyway.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
