Progress on the IVA front

I've heard from the IVA company they want to propose an IVA for me and a DMP with a sister company for DH, the snageroo is that I'm less than enamoured with the sister company. I initially approached them about the IVA thing and they weren't reassuringly thorough AND they wanted a £600 payment upfront before the IVA had been agreed by my creditors so hmmmmm is my thinking on them being in charge of DH's DMP.

For those not in debt hell acronym mode :
IVA Individual Voluntary Agreement- legally binding, done after 5 years writes off interest and possibly some of the debt, but banjaxes credit rating.

DMP Debt management plan - not legally binding no guarantee that creditors will freeze interest no debt written off and banjaxes credit rating.

It's possible that DH would be better to take out a consolidation loan and pay off his credit card and the overdraft he is joint liable for. When I go on an IVA the bank can pursue him for all the money we jointly owe, so his DMP would need to factor in the bank oerdraft...or he consolidates and keeps a clean credit rating for future emergencies?

Your thoughts on this dilemma would be appreciated!

in other news I have opened a joint account today for us which will be a bolthole when the bank throw a wobbler about my IVA. it is the Co-op cashminder account and it reassuringly has no provision for an overdraft and will force me to stay on the straight and narrow.
So that's good news I think!

Comments

  1. Tracy6 October 2010 at 15:58

    Can your husband not do a debt management plan through Consumer Credit Counselling Service rather than go with the recommended company?

    ReplyDelete
  2. Jen6 October 2010 at 16:02

    He possibly could but the disadvantages of a DMP remain, no guarantee of interest being frozen and it would shag up his credit rating for the long haul. If we can afford for him to consolidate then I think that's maybe the better the option?

    ReplyDelete

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