Cant cope, please give me advice

maxineperry

well its amazing how a good marriage can go out of the window when you have serious money problems! When we have been at the brink we try to remind ourselves that "we" are not the problem its the "debt" causing the problem. I think im going to opt for the IVA as the cccs have calculated it will take 12 years 6 months to pay back my debt on a DMP. They have said that my creditors can log adverse information about me on my credit file anyway if they want, even with a DMP in place.

If this is the case i may as well take the IVA option, have adverse info but be clear in 5 years, thats 7 years 6 months sooner than the DMP. At least it will be over quicker and i can get on with my life, what do you think??

SerenaGoode

maxineperry wrote: »

well its amazing how a good marriage can go out of the window when you have serious money problems! When we have been at the brink we try to remind ourselves that "we" are not the problem its the "debt" causing the problem. I think im going to opt for the IVA as the cccs have calculated it will take 12 years 6 months to pay back my debt on a DMP. They have said that my creditors can log adverse information about me on my credit file anyway if they want, even with a DMP in place.

If this is the case i may as well take the IVA option, have adverse info but be clear in 5 years, thats 7 years 6 months sooner than the DMP. At least it will be over quicker and i can get on with my life, what do you think??

Read up carefully on an IVA if that is the case. There are some sneaky potential problems in there, like they can force you to remortgage at an unfavourable rate in the 4th/5th year and give them some of the equity.

Personally I've looked at both options and I'm going to try to go for a self-managed DMP even though it will take longer. But that doesn't mean an IVA isn't right for you - only that you should make sure you know as much as you can possibly find out about each option before you start.

SerenaGoode

maxineperry wrote: »

well its amazing how a good marriage can go out of the window when you have serious money problems!

Oh, and good luck with that. We've been at the brink a few times over this, and it still feels a bit fragile.

rayday2

If your marriage is in danger then I would not consider an IVA at the moment, there is always an option of DMP for a while and switching over to IVA when things are more "stable"

While a DMP takes longer to pay off it does mean that you income can fluctuate, for example in two years if your mortgage shoots up and you can't get another deal then you reduce your DMP payments. An IVA is not so flexible and failure on an IVA is almost certainly bankrupcy.

Also an IVA as far as your credit history is concerned is nearly as bad as bankrupcy so will mean you are less likely to get a good mortgage deal. A DMP only effects your credit history if defaults or arrangements to pay are marked, and these are not as "troublesome" although in the current financial climet still not to be taken lightly.

SerenaGoode

rayday2 wrote: »

While a DMP takes longer to pay off it does mean that you income can fluctuate, for example in two years if your mortgage shoots up and you can't get another deal then you reduce your DMP payments. An IVA is not so flexible and failure on an IVA is almost certainly bankrupcy.

Also an IVA as far as your credit history is concerned is nearly as bad as bankrupcy so will mean you are less likely to get a good mortgage deal. A DMP only effects your credit history if defaults or arrangements to pay are marked, and these are not as "troublesome" although in the current financial climet still not to be taken lightly.

It's a good point that the DMP has more scope for flexibility. IVAs look tempting because they seem to be a silver bullet, but the fallout from an IVA failing is not good, while a DMP can be renegotiated to some degree.

Also, I believe that if the DMP isn't working, an IVA remains an option, which isn't true the other way round. Not trying to persuade you into either, but the IVA can look 'easier' without necessarily being the best solution.

Shineyhappy

Is your mortgage interest only? This is always a good place to cut back if it is repayment.

If one of your loans ends in a years time that will make a huge difference if it frees up 250 pounds a month.
Have you had a look at the up your income section? Have you thought about Ebaying, quidcoing etc? It is amazing how much you can make from selling unwanted goods!

dorisday

So sorry to hear about your most distressing time, I have been through it quite a few times but made the last time the very last time. Please look at an IVA very very careful, I was told to go into one by the national help line and to cut a long story short it was a very very bad piece of advice. I managed to pay it for a year (knowing it was too much for me to pay) but they said I couldnt pay any less also at the end of the 5 years I would have to remortgage my home and pay them some of the equitity from the sale, I eventually contacted the creditors myself and am still paying the debts off but at a pace I can afford. Also the first year of the IVA I made payments of £4000 but this all went to the company dealing with the IVA not a penny towards my creditors. I did contact the national debt line but they couldnt find my records and said it should have not have gone along the IVA road. I think an IVA only works for people who have a large amount of available cash to play with and can see things improving in the 5 years of the IVA. My debts are now 8 years old and I have been offered the opportu nity of paying them off at a fantastic reduction, but unable to raise the cash so I continue to pay the small amount I can and have not been hasseled. Please do take care if you can find the strength to sort things out yourself with help from sites like this of course you will have gained the confidence to deal with many other things in your life. It just takes some real hard work to see where you can start. Please also look at the other sites (free) where other people many who are in worse situations than yourself, can give you the advice you need.:j

RAS

I would be inclined to speak to CCCS as well, as an IVA is only if you are very sure that your situation will be OK for the next five years. If your marriage is under strain or if there is any chance of your situation changing (children, ill-health) then think very carefully before going for an IVA.

Deep_In_Debt

Yep, I agree with others. I opted for a DMP although it calculated that I would be debt free in in 9 years. I could have gone for an IVA which was also recommended but I felt it was not as flexible and since I have just lost my job due to redundancy, so you never know what is around the corner. Whilst I'm not against banckruptcy, it was not suitable for me. I worked in a job regulated by the FSA and only have 5 years until I clear my mortgage and as it's only a small mortgage which is affordable, I can't afford to re-mortgage or rent any where as I'm on my own, so a DMP has been the way to go and with the help of this forum hopefully, i will be debt free before I am mortgage free as I've already managed to reduce my DMP term from 9 years to 6 years in 6 months.

I'm not bothered about my credit rating for the years to come - I got into one mess with a good credit rating so would rather not have credit for a few years.

Do look into the implications of an IVA and if you feel it is suitable then only go for a debt charity, such as CCCS who will only charge you minimal fees if it is suitable.

rayday2

maxineperry wrote: »

well its amazing how a good marriage can go out of the window when you have serious money problems! When we have been at the brink we try to remind ourselves that "we" are not the problem its the "debt" causing the problem. I think im going to opt for the IVA as the cccs have calculated it will take 12 years 6 months to pay back my debt on a DMP. They have said that my creditors can log adverse information about me on my credit file anyway if they want, even with a DMP in place.

If this is the case i may as well take the IVA option, have adverse info but be clear in 5 years, thats 7 years 6 months sooner than the DMP. At least it will be over quicker and i can get on with my life, what do you think??

I think you are assuming life on a DMP will be how it feels now - so the quicker option seems better less pain.

However if you go the DMP route, you work out a budget to live on, save money for rainy days, special occassions etc. The you have x amount left which goes to your creditors.

Yes you agree to have no further credit so you really do need to get that first budget right. Many people going onto a DMP have been so used to eating near the breadline that they think the budget they have is to generous, but its not, if you lived like that before you would never have had to put things on a credit card, overdraft etc

I am not saying it will be a stress free life, but if you like your home and don't want to put it at risk a DMP could be the option as you won't secure any of your borrowings on it. There is a big DMP support thread somewhere with 200 members at different stages who would gladly share experience with you.

Its not exactly biased advice some are only on a DMP as a stop gap to bankrupcy or with the idea of an IVA in mind but we definately have all been at that low feeling you are today.