Oct
18

i am thinking of getting help with a debt consolidation company,?

By
debt consolidation company

what is the difference between an iva and a debt consolidation,and how does this effect your credit score?

Repossession
Categories : debt consolidation

10 Comments

1

No no no!!!!!!!

From the experience of my sister and her husband – it is a nightmare!!!! Percentages of interest on your repayments rise sharply after a period, and it really affects your security on property etc. A company will actually have their name on a mortgage alongside the original lender!!!

As Marcus Brigstocke once said:-

“Being in debt and going to a debt consolidation company is like being shafted by lots of small c*cks, then replacing them with one enormous c*ck!!”

2
Empire State Human
December 22nd, 2009 at 2:01 pm

IVA is an alternative to bankruptcy and you agree to pay a fixed sum to your creditors – normally over 5 years. Debt Consol usually involves you taking out when single loan to cover all your outstanding debts. Organisations such as PayPlan give very good, free advice on your options.

3

run away now! this will be just another monthly repayment you cant make. stop spending.

4
man290663@btinternet.com
December 24th, 2009 at 1:06 am

DO NOT DO it go to the CAB and they will try and come to an informal arrangement with your creditors for free.

an debt company arranges the same thing but more formally and often takes a 10% fee for doing so as well as ruining your credit file.

if things are so bad you need an IVA you might as well sell the house and if that doesn’t work file for bankrupcy as in both cases you’re f**ked.

5

Why don’t you post your problem on the following forum? :http://forums.moneysavingexpert.com/forumdisplay.html?f=76
This is an excellent site and I am sure someone will be able to help you.

6

This is not the best place for advice. I suggest that you go to the Citizens advice Bureau and get face to face free advice.

They are the best at this.

7

Think very carefully before doing this.
My boyfriend owed £30,000 in debt, we went to a financial adviser and he said the best thing to do would be to pay it off. IVA and Bankrupcy will serverely affect your credit rating which could result you not being able to get a bank account, mortgage, etc.
This was three and a half years ago, we have since been busy paying off one large loan and only have 18months left until we are completly debt free (except my mortage of course). We are so glad that we had this advise as we know we wont have any trouble getting a new house and mortgage together.
You should be able to get FREE financial advise from your local financial advisor, check before hand though.

8

Basically if you’re over £15,000 in debt you qualify from help with you’re problem i don’t know where you could obtain the information other than citizens advice bureau and they are very good at sorting this kind of problem out and its free ,i went through a similar problem so i know how you feel ,some consolidation company’s charge a fee for administrating your account which some creditors will not accept ,so talk to them first and don’t bury your head in the sand keep in contact with the people you owe money to and let them know what you’re doing ,set yourself a budget and keep records of every thing you spend or save this will help you in future .
you’re credit score will go pear shaped if you fail to repay your debts its a long road be strong good luck

9

Bebt consolidation is a single loan where lenders consoliate (add up) all your loans and calculate a common interest (will be less than the current one) and loan you. Then you must forget about the previous debts and you must pay this new loan with the interest rates. They give you debt consolidation loan even if you have a bad credit.
I personally know a lot of websites that give loan for bad credit. Get in touch with them online. I hope will help you in getting this debt consolidation

10

Hi, Debt consolidation is where you take out a loan on normal terms to pay off your existing credit agreements, the rates and fees vary depending on how good your credit history is.

An IVA is an alternative to bankruptcy, an insolvency practitioner contacts your creditors makes an agreement with them on amount you will pay (they all have to agree to proceed). You will then pay that over a agreed term, any debt you can not realistically pay off is written off (this is predetermined at the start hense the need for them all to agree to the terms).

An IVA will damage your credit history for a while, you wouldnt expect to get finance while the IVA is running at least. On debt consolidation you will be in a better position regarding your credit history assuming you dont default on the new agreement.

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