I have just recieved my IVA proposal paperwork to sign and in principal i am happy with it, however I seem to be having last minute nerves.[:I]
There have been a couple of posts on the forum re IVA vs DMP and I am now starting to wonder whether a DMP is a better option for me. My IVA firm did discuss this with me briefly however I ruled it out as I was extremely worried about the possibility of my creditors not freezing the interest - however it seems that alot of creditors are more willing to do this than I first anticipated.
My current creditors are Natwest, Halifax & Egg Card,
Has anyone had any experience with these creditors in a DMP and know whether or not they are likely to consider freezing interest on the accounts?
never done a DMP so cannot comment on that but I think everyone has pre IVA signing nerves - we certainly did!! It is a big commitment but it's legally binding with no more interest or charges and for 5/6 years. A DMP on our figures would have meant us working til we were about 100!!!! It's a hard 5 years but then you're free. How long would repayemnt take in a DMP for you?
You also have to think about how long it would take you to pay back your creditors in a DMP. With me it would have been 19 years which was far too long.
You cannot guarantee that creditors will freeze interest and charges.
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
If interest was frozen and no ongoing fees where to be paid i could expect to repay my creditors in full in 9 years!!!
When I look at it like this the IVA looks much more appropriate i suppose I am just worried about the long term affects on my credit rating and the ability to get a mortgage in the future Don't worry I have no intentions of running up any new credit card or personal loan debts again. Since starting the IVA application process I have already changed my spending habits and it is so rewarding to only use money that i have earnt and not credit to buy groceries and petrol.
Oh i nearly forgot to say a A GREAT BIG THANK YOU to all those who write fantastic blogs on the site - i have just been reading some and they have helped me feel much more positive about the choices i am making.
hi tully, we all felt like this when first going into our iva's. drowning under a mountain of debt . once our iva had been agreed we were so relieved, we were drawing cash out of cashpoint with credit card then going back into the bank to pay it off the other cards. we are not rich by any means , and we have to keep to our budget , but we know exactly where we are everyday . ok so credit rating is shot , well that can only be a good thing for me as i dont want credit , it was handed on a plate before , increased card limits and in a short space of time we had run up £120k worth of debt . that is disgusting ! we are shortly going into year 6 of our iva in lieu of equity . hand on heart i can honestly say its the best thing we ever did. we have gone thru a lot of milestones along the way , started with 3 kids all in nursery , the youngest was 4 months old, she is 5 in a few weeks time and they are at school now , the eldest lad who is 18 on saturday is in the army . our iva company have been fantastic , support on here is fantastic . yes its scary but believe me its certainly achievable.
Yeah were both really nervous and wonder whether we are we doing the right thing or should we have just moved. But i'm also a little excited to think that in five years hopefully we'll be debt free. Once our iva has been accepted that is. ! week to go and counting!! I know our road ahead isn't going to be easy but together and with the support this fab group we'll get through
struzzo the time does go quickly . we have paid 54 payments in . dont get me wrong some weeks we live hand to mouth as we are broke , or we have had a car bill or something has packed up that needs replacing . my husband is paid weekly so that helps us , my salary covers iva and mortgage. his covers all the other direct debits . i remember when we started , it was like omg this is going to last forever but the alternative was far worse. we are coming out at the back end now and to think by next xmas we will be debt free, is an amazing feeling . part of me feels guilty for the amount being written off , but then im proud we will have done a full 6 years . the amazing thing is in 6 years we will have paid back £40k ( didnt take that long to spend it ) so if we really saved we could have a nice little nest egg , but im sure it wont work out like that . credit brought us nothing but misery, being skint now , we are happy , dont argue , we know exactly where we are and life is good .
Hi Tully I can remember experiencing those feelings prior to signing the proposals and returning them, do I ? don't I? what if? In the end I signed and returned and it's the best work I've done in respect of my money in recent years, just over two years in and although we're not rolling in money the strain of paying creditors and the uncertainty has been taken away.
Make sure you're 100% and when you are return your proposal.
All the best x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Your credit rating can be affected just as much in a DMP than in an IVA - so do be sure that you consider all angles before finally committing to your chosen way forward.
