Debt help

[SaltnVinegar]

Re: Debt help

So i spoke to PayPlan at lunch and she just sent me this email:

Hi Allana,

Further to our conversation please find below the benefits between an IVA and DMP. I will call you on Monday as arranged to discuss this further.

IVA

- Assigned Case officer to help through the process
You should get this with a managed DMP too.
- Term is 5 years (6 maximum).
This is a looong time to be committed to a legally binding agreement (see further comments)
- No upfront fees.
Shouldn't be any fees either for a DMP. If so walk away. In a DMP there are no fees at all
- Interest and charges frozen.
You can get interest and charges frozen on a DMP
- No Creditor hassle.
Not true. Although your response will be 'I have an IVA in place, this will still not stop them calling you to see if they can get more money out of you
- No further legal action can be taken.
Only true if you do not break your IVA. As mentioned above 5-6 years is a long time to commit to a legally binding payment plan. Your circumstances could change for the worse, and if you are not able to make your IVA payments your creditors can and most likely will take legal action.
- Very high approval rate with Payplan.
So what?! There are many companies that can say the same thing. There are lots of people who successfully negotiate their own DMP's with creditors too.
- Legally binding with both Creditor and Debtor.
Yes it is legally binding, but what works for you also works for them too (see above regarding legal action)

DMP

- Your current term would be 7.5 years.
Your current terms would be 7.5 years if your circumstances don't change. Increase your income the term reduces, reduce your income the term increases.
- Interest and charges can not be guaranteed to be frozen and if they are its normally for a period of 3-6 months maximum.
It is true that interest and charges cannot be guaranteed to be frozen, but utter garbage that when frozen its for a maximum of 3-6 months. I have been on a DMP for over 12 months and have creditors who have frozen interest and charges the entire time.
- Can still pursue CCJ's/Charging order.
This is also true, but if they have agreed to a DMP and you have kept to it, then they would be foolish to do so and it would not be looked upon favourably in court. The chances are that you would be ordered to pay no more than agreed on the DMP anyway
- Not legally binding so the Creditors can cancel the agreement at any time.
This is true but again it cuts both ways. If your circumstances change for the worse there is nothing to stop you reducing your payments.

I hope this is helpful. I will speak to you on Monday to discuss further and see which option you would like to take.


What do you think?

My thoughts above - not being negative about IVA's but they haven't pitched the pros of a DMP either to make a true like for like comparison (not that you can really as its comparing apples for pears).

[helmsman]

Re: Debt help

My thoughts above - not being negative about IVA's but they haven't pitched the pros of a DMP either to make a true like for like comparison (not that you can really as its comparing apples for pears).

Hi,
as SNV has said % is often frozen on dmp for more than 5-6 months 3 years for me so far.( self managed)

[garlok]

Re: Debt help

Don't like IVAs, our solicitors warned us off at the very first discussion we had with them. In fact they were corrrect when I looked. They had said that the majority failed at some point leaving the debtor in more debt than wehen they started out. When I started searching around that seems to be the case and the amount you have to pay is extortionate for what it actually is worth.

I know SnV has some good experience with his self managed DMP.

regards
Garlok

[MrsD]

Re: Debt help

when looking at these comparisons, its not a bad idea to bear in mind that Payplan are a company, ie they need to make money. As a company they provide free DMPs and try to sell you insurance etc. However, they do get a fee for IVAs from you which is added into your debt.
so guys do the math!!!

[nightwatch]

Re: Debt help

the intrest on 99% of our debts has been frozen since 2002, I manage our DMPs

[Never-In-Doubt]

Re: Debt help

Don't go with payplan yet. Check your pm's....

I'd strongly suggest you speak to our guy as he'll look into financial hardship etc. plus a lot more informal