Repaid Debt Over 6 Years
I entered a debt management plan after i fell behind on my repayments to credit cards and a loan, due to an illness which stopped me working.
My illness meant i was unfit to work for at least 6 months, even though I received some health benefits they weren’t enough to cover my expenses.
My debts gradually got larger and larger until my creditors were threatening to take legal action against me and even sent bailiffs to my door.
I tried to negotiate with them and explained my situation however they weren’t interested and simply demanded i repay them immediately.
I wasn’t fit enough to go back into work after the planned 6 months off so my sick time was extended for another 3 months. When i did go back into work my debts had risen to £8k.
There was no way i could repay it straight away, i even called my creditors and tried to setup a payment plan but only one would accept it.
I even complained to the financial ombudsman because I didn’t feel it was fair they could refuse a payment in my current circumstances.
I’m still angry these companies are allowed to hound people who are trying to do the right thing and repay their debt just over a longer period of time.
How I Repaid My Debt
When my creditors failed to accept my repayment plan i called a company for debt advice who told me I should enter a debt management plan.
They explained by the end I will have repaid the full debt owed but because I could afford to make payment it was the best solution available.
I’ve since been told an individual voluntary arrangement was probably a better solution because it would have been 5 years and would write off my debt.
I’ve now repaid my debts and the nightmare is over which is the most important factor for me and I can get on with my life.
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[accordion title=”Story By” load=”hide”]Carl Watson[/accordion]
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Hi Carl,
Just to confirmed a few details about the IVA vs debt management plan. Based on what you have said it sounds like you were suitable for both solutions.
The IVA is a formal arrangement and freeze interest and charges. The debt management plan is basically what you were trying to setup but got refused by the creditors. It’s strange they refused to accept your proposal but did accept a company offering it.
I would certainly have thought the IVA would have been the better solution in my opinion, especially if you were paying for the DMP or interest & charges weren’t frozen.
What’s important is you’re out of debt now and the nightmare is over.
Regards
Kim