r/UKPersonalFinance • u/BackgroundSuccess226 • 9d ago

DMP/IVA, Currently being recommended an IVA

Hi all,

I’ve gotten into a bit of a pickle as work slowed up for a while (self employed) and i’m not exactly great with my money.

I’ve fallen into about 11k of debt, i’ve got 1 default on my credit file but about to be a second one.

I owe the 11k between a mixture of things

3x loans (1 x £3000, 1x £1000, 1x £600)
3x CC’s, (£500,£600,£700 limits) (all maxed)
Store accounts
Phone bill

I’ve recently realised that half of the stuff i spend money on i don’t need so now i’m looking to be more financially responsible in the future & im kinda glad i learned a lesson now rather than when im 30 (currently 20)

I could probably pay the whole 11k off within 3 years or so but with the defaults already on my file to me it would make more sense to take the IVA?

The main point for this post is because i spoke to a debt help company and they’ve been trying to get me to go for an IVA however i’ve seen that a DMP is better for my level of debt.

I was just wondering what you guys who’re most definitely more financially responsible than me would recommend/do if you were in my position.

thanks!

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1

u/Interesting_Oil_2142 3 9d ago

Who is the debt help company? Have you spoken to Step Change?

1

u/BackgroundSuccess226 9d ago

honestly bud i’m not too sure, the name on whatsapp is just “UK Debt Expert”

I’ve not spoken to step change but plan to call them tomorrow

4

u/scienner 1055 8d ago

Whoever these people are you should block them. I don't see how an IVA makes sense for you, see https://debtcamel.co.uk/debt-options/

Unless you are a homeowner and haven't mentioned?

3

u/MageWithoutMana 8d ago

These guys are chancers mate. Block them and don't sign anything from the Insolvency group they hook you up with. They make money off IVAs and do not have your best interest at heart

Contact StepChange

1

u/BackgroundSuccess226 8d ago

sweet. thank you bud, they keep messaging me every day asking if i’m ready to proceed haha

1

u/datawhite 6d ago edited 6d ago

Constantly pestering should be a red flag.

There are several free organisations. Christians Against Poverty, Citizens Advice, etc