Help.. I can only see one solution!

blueneleh

I just wanted to say well done on confronting your debts and doing so much already to try to change this. It's a hard thing to do and taking that first step can feel like a weight lifted.
Well done!

dancingfairy

Hi. I wouldn't discount an IVA out of hand to be honest. The thing is they are suitable for a small proportion of people - the reason they have such a bad name is because they are sold as 'the answer to everything' and 'we will wipe out all your debts' by companies who are out to make money and don't usually have your best interests at heart and it is not explained to people 1) that they are a legal agreement which if fails can result in bankruptcy and 2) the fees that are payable to the company that arranges it.
IF (and I mean if) CCCS or you local CAB or National Debtline recommends it as an option then they should be able to talk it through with you and explain all the ins and outs and why it is suitable for you and with them they shouldn't be pressurising you just to make money out of you but should be impartial.
Having said that there is nothing to stop you taking advice from more than one of the debt agencies for a second opinion and there is no reason you have to take their advice - they may recommend bankruptcy but a person may feel that they would rather sell all of there possessions and work 2nd and even 3rd jobs to stay afloat - they can but recommend - at the end of the day you have to take their recommendations and do what you feel is best for you and your family. What I mean is even a Debt Management is by no means a forgone conclusion - if you wanted and were able to you could sell everything, take in a lodger, work 2nd/3rd jobs etc - I am not recommending this but just to give you options.
The main differences between a DMP and an IVA are that a dmp is an informal agreement where you ask the creditors to suspend charges and interest (most do but some take a lot of persuading and can be hard work to deal with but some companies are happy to oblige straight away). A dmp runs until the debt is paid off or until you are in a position to make full and final settlements generally. The amount you pay can increase or decrease depending on how your circumstances change while on a dmp.
An IVA is a legal agreement and has to be agreed by your creditors - it runs for a set period I believe (5 years) and you may have to release equity in your house, the payments are set I believe and if it fails you may be made bankrupt. I don't know much on IVA's so you will need to read up on them more if necessary but hope this gives you a rough idea.
Anyway - enough from me- good luck with it all and you're on the right track.
df

mah

I've spoken to CCCS now and clarified a few points. They recommend a DMP as i have potential growth of income from my additional incomes and new business. this means i could reduce the time to repay above the agreement of the DMP.

I now have to spend this evening switching utilities and BB, changing bank account etc. etc. then putting the actual figures in the plan, at moment they are from the last statements. so that will be a 2am bed time....

I'll list the revised SOA when done and am very open to any more of your comments and help.

I can then start the ball rolling with the DMP and CCCS.

Your all right, it feels better that we're doing something about it. As well as having people to talk to. I'll keep the thread going.

PS... Last day as a smoker as well!!! that will be hard!!!!

pepe2008

mah wrote: »

I've spoken to CCCS now and clarified a few points. They recommend a DMP as i have potential growth of income from my additional incomes and new business. this means i could reduce the time to repay above the agreement of the DMP.

I now have to spend this evening switching utilities and BB, changing bank account etc. etc. then putting the actual figures in the plan, at moment they are from the last statements. so that will be a 2am bed time....

I'll list the revised SOA when done and am very open to any more of your comments and help.

I can then start the ball rolling with the DMP and CCCS.

Your all right, it feels better that we're doing something about it. As well as having people to talk to. I'll keep the thread going.

PS... Last day as a smoker as well!!! that will be hard!!!!

Be confident about your Business, mah, but dont overstretch yourself on the agreed monthly payment.
Well done.......allow yourself to buy some chewing gum out of your budget!

WorzelG

Im suprised nobody has mentioned it but I think your mortgage is far too high as proportion of income. Especially with kids in childcare and other debts to pay.

Perhaps look to downsize in medium term?

mah

WorzelG wrote: »

Im suprised nobody has mentioned it but I think your mortgage is far too high as proportion of income. Especially with kids in childcare and other debts to pay.

Perhaps look to downsize in medium term?

Problem with this is that if we move now, we would end up with no equity to put down as a deposit on a new house. We would need our house price to recover a bit more first.

gonzo127

well you are doing so well so far, if you need any help looking at broadband and related things we can help with that as i said in a earlier post the first thing you need to do is look at what is available to you using http://www.samknows.com/broadband/checker2.php put in your phone number and post code and it will show you what if any LLU and or cable you can get at your local exchange once we know that we can advise further

good luck with everything and you really should be proud with how you have gone about these things!

mah

sky reduced to £21 for the time being.
BB reduced from £21/m to £5/m and free for first 6 months with sky
Telephone package reduced from BT's £54/month inc free E&W and F&F to Sky at £11/month line rental inc free evening and weekend calls.

Saving £61/month so far.....

gonzo127

well done thats a great start. just remember when you look at your gas and electricty to check through quidco and or topcashback for cash back deals! these can really help as they can be anywhere up to £100 -£150 if you switch on top of getting cheaper bills!

mah

Well, the s**t hit the fan last night.

The loan is £20k not £7k. We adjusted some of the figures on the CCCS report. it now recommends a Low Start DMP. I'll be paying this lot off for the next 17 years.. no pensions, no assetts, and debts not clear til i'm 62..

i'm now thinking we should just go bankrupt and try to do best we can to start again.