Apologies in advance for the length of this post. I have an IVA and am asking about DMP on behalf of a friend. They have debts totalling roughly 18k owed to 5 creditors with the majority of the debt 13k owed to the halifax, could anyone tell me if this is to large a sum to take into a DMP her salary is 25k with the potential to earn another 10k a year from agency work, also how long do DMP last and is it a fixed amount that you pay each month.
ive suggested an IVA but she is reluctant to take that route and with my nil knowledge of DMP i said i would ask you guys for any advice that you can give.
Hi, I don't personally know the answer but think it would be worth your friend talking to 2 or 3 professionals to get some case specific advice, you could always point them in the direction of www.iva.com for a list of companies and some reviews of these. A DMP has varying lengths until the debt is paid in full whereas your IVA protects you from creditors. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
A DMP may be the best option but with that kind of earning capability there may be other options which would not impact so much on her credit rating. She should consider speaking to the Halifax and maybe extend the repayment terms rather than badly damage her credit file.
Remember that any late payments will show up badly on a credit file. Agreed though that with the earnings some informal agreement may be least damaging!
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Notwithstanding any deal that your friend might be able to do with Halifax to protect they credit rating, there is absolutely no reason why your friend cannot start a DMP. Ultimately when using a DMP solution there is really no upper or lower limit in terms of debt.
The real question your friend needs to be asking is how much disposable they have and therefore how much they can afford to pay back each month. This will then give them an idea or how quickly the debt will be paid using a DMP. If it is shorter than five years then the solution would seem sensible. However they need to be aware that their credit rating wil be negatively effected and interest/charges may continue to be added to the account balances.
