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OnlyMe

No Iva's

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Well the big banks have got what they wanted - they were very annoyed at the IVA companies making money out of their debtors.

Big banks should be careful what they wished for becuase now they will have to deal with the results of their own lending themselves - it will be costly, invovle big lossess and lots of bad publicity. Expect bankruptcy proceedings to soar again. The IVA system provided a bit of a mask, covering up what was really going on. The mask is about to slip.

http://business.guardian.co.uk/story/0,,2181016,00.html

10am

Debtmatters plummets nearly 70%

Graeme Wearden

Monday October 1, 2007

Guardian Unlimited

Shares in Debtmatters crashed by 69% this morning after it said it was stopping advertising its credit arrangement services because they may soon be unprofitable.

Edited by OnlyMe

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I've never really understood the point of IVAs.

You write off some of the debt in exchange for huge fees and have most of the restrictions of bankruptcy. Bankruptcy is a better option imo.

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I've never really understood the point of IVAs.

You write off some of the debt in exchange for huge fees and have most of the restrictions of bankruptcy. Bankruptcy is a better option imo.

I agree.... but IVAs are better for banks as they get more hence the push...

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Yeah, cheers to the HPC tipsters who recommended Debtmatters last year by the way. 95% loss in 9 months, not one of my better investments.

Trying to profit from murky companies who make money out of debt slaves is morally bankrupt. You deserve to suffer those losses.

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Yeah, cheers to the HPC tipsters who recommended Debtmatters last year by the way. 95% loss in 9 months, not one of my better investments.

You must have read different posts from me. It was at about this time last year that I dumped DFD. You should have read the posts that said that these debt companies were a big risk.

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I've never really understood the point of IVAs.

You write off some of the debt in exchange for huge fees and have most of the restrictions of bankruptcy. Bankruptcy is a better option imo.

Not if you've got a house it isn't, plus a few other points depending on your job and carreer aspirations.

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Trying to profit from murky companies who make money out of debt slaves is morally bankrupt. You deserve to suffer those losses.

Guess we should never invest in banks, or builders, or any company for that matter. They all want to profit from debt slaves.

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Have been given the go a head from she who must be obeyed to buy Gold. I only hope I'm not to late.

OhMYGod! Is that not the same attitude as "Must get on the Housing Ladder before it's too late!!!" You're serious too aren't you!!!! What do they say about a fool and his money??

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From the FT today:

For higher earners, an IVA can be preferable to bankruptcy because it provides greater privacy and more control over property ownership. A typical five-year IVA will require homeowners to release equity from their homes to repay debts, but they retain title.

More middle and high-income homeowners are expected to resort to IVAs in the months ahead, as they have greater difficulties servicing their debts.

“Next year, we’re going see more people in these brackets with debt problems,” predicts James Falla, of debt consultancy Thomas Charles. “The middle- to higher-income brackets have seen property prices rise and they’ve pushed themselves to get there. These guys are now coming to the end of fixed-rate mortgage deals. Now they’ll find they’ll only be able to get 6.5 per cent, so we’ll see a trend towards more higher-income people getting into trouble – the trigger will be property.”

How are people going to release equity from their homes to repay debts if the property has reduced in value?

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Yeah, cheers to the HPC tipsters who recommended Debtmatters last year by the way. 95% loss in 9 months, not one of my better investments.

You made some investments from the advice of someone on an internet forum :o

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Yeah, cheers to the HPC tipsters who recommended Debtmatters last year by the way. 95% loss in 9 months, not one of my better investments.

It could have been worse - it could have been me.

:lol::lol::lol:

I guess its like losing a couple of quid on the horses.

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Yeah, cheers to the HPC tipsters who recommended Debtmatters last year by the way. 95% loss in 9 months, not one of my better investments.

There is a reason why you should not get financial advice from an internet forum!

Still it could be worse! Imagine if you decided not to buy a house on the basis of this site a few years back. Ouch. Its feasible that some on here have lost the opportunity of providing a stable house over their kid's heads thanks to such wisdom! Just on the off chance they might save a few quid!

Who said it was only BTLs that are greedy?!

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Not really a valid or coherent argument.

Nothing wrong with a little diversification ole bean.

You know, bonds, Isa's, Gold, Share exposure (even housing, if you bought before 2001 :D ).........

I wasn't saying there was anything wrong with investing in Gold - I'm all for diversification. BUT the attitude of "must get in before it's too late" is what I was ridiculing.

And if my argument was neither valid or coherent, I'd suggest that was a function of your inability to understand what seemed to me a simple allusion.

Toodle pip, old bean.

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You made some investments from the advice of someone on an internet forum :o

Almost all the succesful investments I made came from advice from internet forums. Before that, I mostly used to lose on my investment choices. By internet forums I mean HPC.

Got to be careful of course so its really a matter of sifting through the advice properly before acting on it.

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IVA's are very often a worse option than bankruptcy... for 99% of people it is better to bite the bullet and go bankrupt.

Banks can be very unreasonable in dealing with IVA's. I've had a number of IVA's scuppered by banks even though the proposal was demonstrably better for creditors than a bankruptcy.

I'm not familiar with debt matters business model but I would imagine that they operate on a "sausage factory" basis with standardised forms and systems which should enable them to keep costs down compared to a sole practitioner. I'm a little suprised they couldn't get the banks on board in advance.

The only result of this is that more people will take the bankruptcy option so the banks will get zip.

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