confused dmp or iva

Charco_2

Well the first thing is it begs the question - where did someone find £450 from?

It's companies like that that give insolvency a bad name - and i bet £1 they're not even IN insolvency... their website (if it is moneyexpert) shows they've a finger in every pie from insurance to loans to debt help but my spideysense is telling me they simply sell people on like commodities to various industries who will actually do the work!

You definitely CANNOT do an IVA becasue you're not insolvent (all that equity) so you fall somewhere between the cracks of the debt solutions... not enough cash to produce a DMP of any realisitc term (£30,000 debt / 250 monthly contribution = OVER 10 years DMP... depending on Interest and charges which at a guess would bring this closer to 14yrs)

A DMP is certainly you best option for the short-term but keep your eyes peeled for other... boosts along the way!
Think about it like this: you've got your prison sentence but you can get time off for good behaviour. Work out your realisitically affordable monthly contribution - as Choo says, not including bonuses etc, just basic wage and commit to making this contribution every month.

Good behaviour:
- keep nagging your creditors and putting pressure on them to freeze interest and charges (or you'll get nowhere), keep an eye to see that balances are reducing every month or every quarter - even if just by a little bit.
- save up bonuses and commissions and pay them directly off specific debts, target those debts that have the highest unfrozen interest rates. (your DMP company may not allow this saying that you have to pay everyone equally but actually it's an INFORMAL agreement and you can...
- ask for settlement figures from your creditors especially those on loans (as opposed to cards) in case interest was front loaded for the full time period of the loan, and those debts that have been sold or passed onto debt collection agencies because they bought it for a fraction of the full debt and may accept some discount for a speedy return
- check on the DFW threads and the Old Style MoneySavers threads for ways to reduce you outgoings and maximise your earnings! (the further it goes, the quicker you can save up the extra to clear the debts)

jules42

well i will say a big thank you to you all, i think i have had a lucky escape.. reckon its dmp for me xx

Choo_Choo_4

I think that's prob the best option for you Jules.
Remember to set a monthly payment that is affordable and realistic (without verging on generous)

And this way, if your situation does improve along the way or at some stage you think you might be able to realise some of the equity through a remortgage you would be able to settle some of the debts early.

Good Luck Jules - will pop onto DFW to see how you're getting on once sorted x