IVA's are they the answer to getting out of serious debt?

Question

I've got us into serious debt and are letting Debt Free Direct help us sort this out, but they keep changing their minds as to whether an IVA is suitable for us or a remortgage. We are both 50 and in full time employment

Answer 1

The money man on gmtv was talking about this the other day and saying its not a good idea.

If you go to www.gmtv.com I think he has left some advice on the website.

Hope this helps.

Answer 2

I am sorry to hear that you are in difficulty with debt problems. Trying to find an answer here is fraught with danger. There are some people here who I am sure are well meaning but obviously don't know what they are talking about.

What you need is professional advice the question is from what source. The Citizens Advice Bureau will offer you free advice but cannot arrange an IVA for you. The only person able to set up an IVA for you is a licensed Insolvency Practitioner, like Debt Free Direct.

Debt Free Direct are not the only Insolvency Practitioner operating in this field they are however the biggest. If you search Google under the term "IVA" there are millions of IVA providers listed.

In my experience there is one that I could recommend. They are called myIVA-Adviser and can be found at this link

http://www.myiva-adviser.com

They have a very usefull articles page including articles explaining issues around IVAs or remortgages. Read them here:

http://www.myiva-adviser.com/blog/

The guy that set up the company actually did an IVA himself so he really does know what it feels like to be in situation similar to yours. Read his story here:

http://www.myiva-adviser.com/my-personal-debt-story.php

In my opinion his experience has definitely affected his companies attitude to IVAs and this is reflected in their website.

I don't know whether an IVA or a remortgage is the correct solution to your problem, but I am sure that getting professional advice is essential even if you have to pay for it.

good luck whatever happens

Answer 3

Be careful of re-mortgaging for repaying debts. Only a few groups can come after your home if you owe them money - the government, American Express (!) and any companies who have loaned you a substantial sum that is secured against your property (like your exiting mortgage provider).

Remember with an IVA you are doing two things - stopping interest and new charges, THEN trying to agree a reasonable repayment.

I'd ask DFD if they get a commission for arranging/recommending a re-mortgage. I would guess yes.

Depending on how much you owe and who you owe, an IVA can take two forms - either a private agreement with one or two creditors or a formal agreement with all creditors who agree to discuss an IVA with you.

First off, you need to be sure how much you can afford to pay - if its £100 per month, then that's what you offer. You'll have to provide information on your income and outgoings (easy enough to do when you sit down, pen in hand, and go through an average month) - this info will show them that you are honest about what you can afford to pay. Unless they have an agreement secured upon your home, they are very likely to do one of two things : accept your payment plan or accept a cash payment for a discounted amount.

All of this can be done yourself - no mystique, no magic. Just a letter requesting an opportunity to agree a VOLUNTARY REPAYMENT PLAN in return for a freeze on interest and charges. Then, you'll agree the plan and, if you stick to it, things will look up for you.

By taking out a second mortgage, you may pay off existing creditors but be left with new monthly payments that don't give you any breathing space. Talk to the Citizens Advice Bureau or call the National Debt Advice Helpline for free on 0808 808 4000.

Don't rush into a re-mortgage, don't treat all debts as equal and don't feel like you can't manage your own affairs. You can.

Answer 4

Well debt free direct are going to make a charge one way or another.

I would advise you to the citizens advice bureau. They are free and independent+ can set up IVAs without some sort of charge.

They will point out other solutions to your debt. Any commercial company will only tell you options that bring them a fee or commission!

the fact that debt free direct keep changing their minds indicates that they are not that sure of what to do. Dump them go to the CAB.

Answer 5

Try looking for some expert advice online at a site dedicated to debt information - the one below always seems like a good source of info. Good luck with however things turn out!

Answer 6

I think in some cases with IVAs you can end up blacklisted anyway. Try the CAB for advice or Martin Lewis the money saving expert.

Answer 7

Try contacting the consumer credit counselling service (www.cccs.co.uk) or Pay Plan (www.payplan.co.uk). They offer free services including debt management, where all the money goes to the creditors.
Try to avoid fee paying services. the more that goes to your creditors the faster the debt is paid.

Answer 8

Try the Consumer Credit Counselling Service - they have good advice on their website and you can speak to an adviser for further help.

Answer 9

have you talking to citizens Advice Bureau, they can contact all your creditors and help you make small affordable payments. or you you could do this yourself, draw up a list of your creditors, then do a expenditure list and offers of payments then end to all your creditors. but I'd say go to Citizen's Advice First. they helped me. take all your paper work with you. good luck.