Write off 90% debts From £80 a month No setup fees

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JustPlainStupid

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Post by JustPlainStupid » Thu Mar 07, 2019 9:15 pm
That's the headline at the top of this page. I just want to take that line by line for a second for anyone who thinks that this is your get out of jail free card:

Write off 90% debts
This is a lie. When you go into an IVA, NOTHING is written off. The whole debt remains until the end and then the creditors MIGHT write off the balance. If you owe £50000 now, you'll owe £50000 minus any payments you've made in 4 years and 364 days time. If the proposal at the start illustrates that you'll be paying back £25000, they are not writing off the other £25000. You still owe £50000. Inheritance of £25000? They'll have that and you'll still owe £25000.

From £80 a month
Assuming your disposable income is only £160 a month after the allowances you can put down which are not fully documented and can be rejected because they're only guides anyway.

No setup fees
Possibly true but remember that £50000 you owe? Now you're in an IVA, the IVA company will take fees. So actually, you owe £65000 ish. Oh, and there's some reason they need to vary the payment - even if it's up? That'll be £600 please, added to your debt. So you now owe £65600.

The forums here will tell you to shop around. Don't spend too much time on that. I saw it posted that "This is YOUR IVA". No. It's not. You have no control in reality. If the nice company you chose based on reviews decide to offload you onto some shark who'll never pick up the phone, answer your e-mails or offer any sort of service then they will and you can do nothing, absolutely nothing about it. It's like you chose the nuns from "Call the midwife" and you end up with Fred West.

If I'm wrong on any of this correct me. If nobody corrects me and you're reading this, take heed.

All in all, think very, very hard. If you think your circumstances will change, do anything in your power to buy yourself some time.

My experience:

£66k worth of debt
£19k in fees
£85k total
Original payments of £800 a month
Payments now £1800 a month
Predicted to hit £100p in the £ AND all fees paid off at around month 58
On my third IVA company

Bellevuejp

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Post by Bellevuejp » Thu Mar 07, 2019 10:56 pm
Those who enter into an IVA should know the score from the outset when they talk to any reputable company...that’s knowing they’ll always owe the full amount for the duration, that fees are payable and that the annual review will determine any changes to future monthly payments.

I have to say that the IVA was the absolute best thing I’ve ever done...I don’t have the £95k plus debt accumulated on credit cards and overdraft, I paid around £84k including fees back. I know for a fact that I would NEVER be in this position today without taking that step to enter into my IVA - if I hadn’t done so then I would either be back home with my parents or still paying off the minimum each month getting deeper and deeper and continue to be worried about it all...I’m doing neither and life couldn’t be better as a result.

Allywally

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Post by Allywally » Fri Mar 08, 2019 12:18 am
IVA was a lifesaver for me, My life changed so much during the six years ( one month to go) that I sometimes forget where I was before it started. Black hole doesnt have a look in, I thought about driving into a parked lorry so as not to affect anyone else, put a toaster into the sink ( having seen it on Coronation Street) but chickend out and eventually took an overdose. I agree nobody would choose to need an IVA but it certainly saved me and we got to the end of our mortgage which would never have happened. I would recommend it to anyone for the peace you eventually gain.

luluj

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Post by luluj » Fri Mar 08, 2019 4:55 am
Everybody has their own opinions of an iva.

No two iva's are the same, and therefore everyone's expectations and experience will be very different.

For some it is a positive 5 / 6 year resulting in complete debt freedom, whilst others struggle through, having to make adjustments throughout to make it work.

An iva is not meant to be an easy ride, it does provide you with breathing space from your creditors with an agreed route to take.

The forum is designed to allow differing opinions, the moderators have all been through their own iva's over the years, so know first hand, how you are all feeling. We do our best to provide you with answers and assurances, but not always necessarily what people want to hear.
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

Look at my blog "All I wanted was a baby"

Foggy

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Post by Foggy » Fri Mar 08, 2019 7:51 am
The tag lines you are quoting are all scenarios -- possibilities. Just as is the picture you paint in your 5th paragraph. It seems you have had a rough ride, some do, many don't -- circumstances all differ as, I have to admit, do IP /firms.

Some people DO pay back around 10% of debt (they are also, as you have been, forgiven the contractual interest for the term as well). For most it is nearer 30%. And some people pay £80 a month .... you earn more, you pay more.

The object of an IVA is to pay back as much as you are able, NOT to pay back as little as possible. You borrowed the money, so you try to pay it back.

You are right, it isn't, by any means a bed of roses and, in some cases can be a rough ride and, yes, it is YOUR IVA ,,, after all, you are the one who suffers if it goes pear shaped, so you need to understand it and challenge the IP if he or she strays from the terms. but, yes, like any contract, you are still bound by it's terms.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

kallis3

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Post by kallis3 » Fri Mar 08, 2019 8:00 am
I agree with Luluj - our circumstances are all different. Problem is if you bury your head in the sand, you will only get deeper in debt and run the risk of creditor problems.

It is best to seek advice from a few companies before making a decision and all of us mods have been in an IVA and come out the other side and your debt will be written off. You may have to try and release equity towards the end and also pay across any windfalls or PPI until you reach 100p in the pound plus fees.

Best thing I ever did.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

Ryan

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Post by Ryan » Fri Mar 08, 2019 9:30 am
It's good to have a place such as this forum where you get to hear both positive and negative experiences of others. It's certainly best to be fully aware of what you are entering into when you do go into an IVA as it can have a long term impact on your future.

Regards
Ryan Radford
IVA Mortgage Expert
Zebra Money Centre

IVA Mortgage advice needed?

Contact me at http://www.ivamortgageexpert.co.uk or via the expert page

JustPlainStupid

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Post by JustPlainStupid » Fri Mar 08, 2019 11:55 am
Good to see some different perspectives on this. The main issue I have is the claims of just about every single advert you'll see. Like I say, look at the headline. It is NOT an accurate reflection of the truth. When you get to the point where you're exploring these options, you're highly vulnerable. Yes, with the best will in the world, you'll sit there and go through all the paperwork, listen to the nice advisor and come to a decision based on all the facts.

In reality, we got here because there was a pile of envelopes on the microwave that we were scared to open, 145 calls on our phones that we'd ignored because they were from companies chasing money we didn't have, and every knock on the door sent our hearts through the roof.

These physiological pressures are not conducive to making rational decisions. It's an absolute biological fact that in situations like this your prefrontal cortex shuts down and your 'lizard' brain is in control. This means you are pretty much incapable of making rational decisions at a time when you're going to sign away 6 years of your life.

I'm quite surprised some of these adverts don't fall foul of advertising standards. I spent ages on the phone to a guy going through all my finances and he told me that I'd get away with 'offering' about £450 a month. I ended up paying back £800 a month at the start. It was never going to be any different. The first guy lied to me.

And I'd still argue at the level of control you have. What benefit is there in exploring all the companies when you could end up with the one you discounted at the start anyway with no choice in the matter?

IVA companies telling you stories about writing off debts are going to be making a LOT of money out of you. Explore all of your options thoroughly.

kallis3

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Post by kallis3 » Fri Mar 08, 2019 12:05 pm
Best thing is to start looking before you get in too deep which means you are more rational and not rush into anything. Some companies are good and come recommended by posters on here. Never go with someone who cold calls you and ignore letters. Make your own decision, do your sums thoroughly and argue your case if you are not happy.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

MerlinL14

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Post by MerlinL14 » Fri Mar 08, 2019 1:47 pm
I don't believe that any 'sensationalised' headline title is going to truly reflect the process and protocol of an IVA. There is a degree of withholding some of the truth of what you will be expected to encounter during the period, but then it is an I (individual) VA. I got 'sold' on in year 2 to a company that at the time was being ribboned and lambasted over their treatment of people in IVA's, I was dreading the next 3 1/2 years. Turns out that my IVA was set on pretty smooth water and I had no issues at all that led to a stressful outcome. I do believe that without the choice of an IVA that my outcome in life would not be a rosy as it is now.
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues

abbiesmum2003

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Post by abbiesmum2003 » Fri Mar 08, 2019 4:39 pm
I understand what you are saying. The lines I read on some adverts make me go ‘yeah whatever’.
But having done an IVA and successfully completing it last year I can honestly say it is the best thing we did.
You have to understand fully what you are signing up for and what might happen during the 5-6 years (or more). It is an individual arrangement so issues occur during an iva which may affect some and not others.
I read many posts on here from people who didnt get what they were agreeing to and havent understood the detail and perhaps assumed/believed the headlines about righting off 90% of debt.
I do believe the success of an iva is related to the understanding the client has and the mentally you have entering into one.
For us we read read and read every word of our arrangement. We had very good advice before starting up, and we genuinely tried to repay as muh as we could including paying across overtime, PPI and a significant inheritance.
The headlines you state are misleading in my opinion. They capture people who are vulnerable and perhaps lead people into plans they dont fully grasp due to the situation they find themselves in....however, Done well with good pre-iva advice and sound knowledge about the detail, an IVA can be very successful. It was for us.
Clean slate, rising credit score, Increased credit limit since iva completed, money in the bank at the end of the month, a head for budgetting and children who understand the value of money, saving for what you want and shopping around.
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