Is the interest on your debts reduced if you take out an IVA?
I have seen adverts on the internet stating that your debts can be reduced considerably through goverment IVA, is this true.
I am getting huge harrassment from my creditors, telephone calls threatening letters to take my home from me if i dont pay up in full or increase my token payment of £1 per month.
I want to be debt free one day and am looking for a solution without loosing my home as i have a baby on the way.
Hi Dizzie. Broadly speaking, in an IVA, interest is frozen from the time the IVA is agreed. The IVA is paid over 5 or 6 years and the payment is based upon your disposable income, so the actual amount paid may well be a lot less than the original debt.
I would suggest you pop over to www.iva.com and have a chat with a couple of the companies listed there, for specific ( and free) advice.
The Govermnent has a DRO scheme, but your total debt must be less than £15,000 and you must have no assets or disposable income, so this will probably not apply.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Foggy wrote:
Hi Dizzie. Broadly speaking, in an IVA, interest is frozen from the time the IVA is agreed. The IVA is paid over 5 or 6 years and the payment is based upon your disposable income, so the actual amount paid may well be a lot less than the original debt.
I would suggest you pop over to www.iva.com and have a chat with a couple of the companies listed there, for specific ( and free) advice.
The Govermnent has a DRO scheme, but your total debt must be less than �15,000 and you must have no assets or disposable income, so this will probably not apply.
I have my house as the asset so no debt relief order not suitable for my situation. I also have equity in my house but not in a position to remortgage, the house prices have gone and im 6 months pregnant want to keep a roof over our head. I want to get back to work once the baby is born.
I thought once a debt had gone to a debt collector such as Triton the interest would be stopped however my Natwest debt continues to increase. [V] I feel so stressed and feel there is no way out.
Last edited by Dizziediva2011 on Sat Apr 09, 2011 4:53 pm, edited 1 time in total.
A Debt collector will not stop interest accruing - you need to speak to a professional and sort out the best option for you. An IVA will stop interest and charges building up.
Visit the link provided above and you will receive some free and impartial advice.
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
Hi...there will be a way out for you!!! Speaking to a couple of professionals will lift a huge burden immediately! Yu will actually feel a physical weight lifting after that first call!!! And congratulations on the baby...do yu know what it is? x
Hi
Can you afford to repay more tahn £1 to each of your creditors ? Token payents of just a pound will not stop the letters or calls I'm afraid, you may be better using a third party to deal with your creditors and if an IVA is not suitable you may find a managed debt management plan will be
Regards
Good luck with the baby dizzie - hope you can get something sorted so you can enjoy the rest of your pregnancy.
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
Totally agree with Andy - I did a paid for DMP initially and had all interest and charges stopped, I only changed to an IVA due to the time it would have taken to pay off a DMP.
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
Dizziediva2011 wrote:
I thought once a debt had gone to a debt collector such as Triton the interest would be stopped however my Natwest debt continues to increase. [V] I feel so stressed and feel there is no way out.
Hi Dizzie,
Unfortunately the debt collector can't always freeze the interest - when I began on my DMP (hopefully getting an IVA approved later this week) I had two debts with Nat West - £11000 remaining on a loan, repaying £123.50, and £1000 on my overdraft, repaying £14.22. The loan was okay, but they started charging around £20 per month on the overdraft, so Triton instructed my people to allocate the large amount to the overdraft, and the little one to the loan, in order to clear the overdraft. That was paid in full last year because of that, and since then the whole £137 has been going to the loan.
Like the others have said, I'm sure there is some solution out there somewhere for you, it probably depends on your circumstances as to which one might be the best solution. Take Care xxx
Final payment 1st April 2016.
Completion Certificate received 19th May 2016.
Hi, things must seem very bad,the stress is dreadful...but never feel there is no way out, there really is a way forward for you. it isn't a quick fix but it is better than the position you're in now. you'll be given allowances for food etc,clothes so don't worry about that.
make a big effort,ring some ip firms up from the link that's posted and talk to someone. tell them you're ringing more than 1 firm,don't be pressurised into going with someone because you're in a panic. post who you're thinking of using & members will give you feedback.
the letters are all about frightening you into paying them,stand firm,save you're £ up for your emergency fund while you get this sorted out.
i didn't answer the phone for weeks,we also changed mobile no's after a few weeks. look after yourself & your little baby,eat well,get your rest and make those calls. if you can get this sorted out you can then concentrate on your baby. big hug x
Nothing stays the same...everything changes..hang on in there!
