Not sure if an IVA is worth it

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Topper
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by Topper » Sat Jun 10, 2017 3:40 pm
Hello,

I recently got offered an IVA so started looking into it but every forum seems to have people with way more debt than me or struggling a lot more.

I have £5000 debt from just 1 creditor and I can keep up with paying interest comfortably but I'm not progressing anywhere with actually moving the debt itself. I'm torn between getting the IVA I've been offered to make sure I definitely start paying it off or just kind of sitting as I am and pushing for finances to improve in my job. If I can improve my finances I can probably get rid of it in less than the 6 years it stays on my record but if not then I'm just delaying the inevitable. I'm also concerned that I will have more trouble moving out of my parents house if I'm on an IVA than if I'm not.

Just wanted a few more opinions on whether it seems like a good idea or not
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kallis3
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by kallis3 » Sat Jun 10, 2017 3:52 pm
Hi,

For that amount of debt I doubt you would get an IVA. If you have no assets you should consider a Debt Relief Order unless you could get a loan with lower repayments than you pay at the moment..
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Foggy
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by Foggy » Sat Jun 10, 2017 4:14 pm
For that sort of debt an IVA is over the top --- if you can make interest payments I would suggest a chat with Step Change to talk about a DMP -- they might be able to get interest frozen to give you a chance to eat into the principal debt.
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luluj
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by luluj » Sun Jun 11, 2017 4:33 am
I agree with Kallis that a debt relief order or a debt management plan maybe more appropriate .... you need to get advice from three or four providers and really understsnd the implications to each option.
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Andy.75
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by Andy.75 » Sun Jun 11, 2017 11:11 am
Could you not take out a zero percent balance transfer credit card and pay it off that way? Virgin money have some great deals on at minute
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Michael Peoples
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by Michael Peoples » Mon Jun 12, 2017 8:11 am
I agree with Andy. Try and clear the debt and keep your credit file as an IVA for this amount of debt seems excessive. If possible ask your parents to reduce your board and try to cut back until the debt is cleared. It would be worth it in the long run.
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kallis3
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by kallis3 » Mon Jun 12, 2017 8:30 am
Just as a point of interest, who recommended an IVA to you?
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Lisa Thomas
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by Lisa Thomas » Mon Jun 12, 2017 8:45 am
Are you sure it was an IVA you were recommended and not a DMP?
Topper
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by Topper » Mon Jun 12, 2017 12:37 pm
A company got my number from I don't even en know how which seemed really suspicious as it was but I made sure to check them out and that all seemed fine. I spoke to them on the phone for some time and went through several of the other options a few of you have recommended but they then advised the IVA anyway. Definitely not going to be doing it though after all of you saying it's not worth it though.

Thanks :D
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Michael Peoples
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by Michael Peoples » Mon Jun 12, 2017 12:43 pm
It would be madness to ruin your credit file for £5,000 and no guarantee of an IVA being accepted anyway. You are doing the right thing so hopefully you can find a quicker and cheaper way to clear the debt and the 0% option might just be the right way to go.
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kallis3
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by kallis3 » Mon Jun 12, 2017 1:29 pm
You should not have been cold called anyway. You are right to have stopped it. Would you mind letting us know who it is so we can warn others about them?
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Imhotep
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by Imhotep » Mon Jun 12, 2017 6:18 pm
Andy.75 wrote:
Could you not take out a zero percent balance transfer credit card and pay it off that way? Virgin money have some great deals on at minute


Exactly what I was thinking. At least the debt would be going down.
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