Has anyone had an IVA with PayPlan?

[user0512]

Hi,

Had a financial assessment for debt and an IVA was recommended by PayPlan. It’s by their sister company so I’m just wondering if it’s just being recommended to benefit them or if it’s actually the best option.

Anyone havs any experience of this they can share? Thanks

Have you had full debt advice to make sure you're aware of all of your options and can make an informed decision? An IVA is an insolvency option. Were the implications of this explained fully to you? As there are large fees for an IVA I would contact a charity like Stepchange or Citizens Advice for impartial debt advice first before you proceed. https://nationaldebtline.org/get-information/guides/ways-clear-your-debt-ew/.

As above the first step is to make sure an IVA is the right solution and that there are no other options. Step Change or National Debtline are the go to outfits.

The provision of IVAs is a big moneymaker.

Somebody, I think Paul Lewis of BBC Moneybox fame, has said that unnecessary IVA's is a financial scandal on the scale of loans with unemployment insurance.

I had a DMP with them years ago. They were really good

Payplans fees are aid by creditors not customers

@Rabbitmother1 when I asked they said there wouldn’t be an additional payment and that it would be covered in the monthly amount but I’ve read online you can’t do anything with an IVA for instance if his situation improved in 3 years he wouldn’t be able to go on holiday? Not sure if this is true

you will be required to send evidence of your incomings and outgoings around the anniversary each year for an annual review. If your circumstances have improved your IVA payments will increase to reduce to amount of debt written off by creditors (until 100% of debt and fees are paid). You are given allowances for costs but wouldn’t be given one for holiday. Potentially you could squirrel money away for a cheap holiday at some point but highly unlikely you could afford an abroad holiday every year