Should I approach my Credit Cards before contemplating IVA or DMP?

redsam

I am here as I am in debt!

I have 3 credit cards, a loan and a car on HP, and mortgage. I am teacher, but my contract is coming to an end in August and I havent been able to get a permanent post for september. So will have to pray I get some supply work. To compound things, I have labyrinthitus (viral ear infection) and been off work...had a letter yesterday that I went on half pay from last week!

I havent missed any payment and have been trying to pay more than the minimum on the credit cards. I live frugaly as possible, live off an allotment and dont spend much on clothes etc and do car boots when i can. I just want to reduce my debt.

I spoke to an debt company and they say I am eligible for IVA and CCCS said either IVA or DMP, but from Sept I dont have a fixed income.

So really my question is...is it worth approaching my CC companies to see if there is a short term solution, freeze interest/lower payments etc???

I dont want to loose my house, I am getting married in April and will be doing that as cheap as chips, my partners attitude is my debt is my debt, which i understand.

Any advice anyone?

Tixy

Hi and welcome to DFW

If you don't have a fixed income then it would seem that an IVA would not be suitable for you, as you could end up unable to make payments and your IVA might then fail.

It doesn't sound as though you need a short term solution informally with the CC companies. So it seems like you need something more long term set up so a DMP might well be the way to go.

With regards to your house/mortgage, is this just yours or is it yours and your partners? If you own it alone then i would suggest you don't open any joint accounts with your partner as you being on a DMP is likely to affect your credit rating, and theirs if they are financially linked to you.

How much are your debts? how far short are you likely to be of making repayments?
Have you done supply work before? do you know how much you are likely to be able to make from it?

It might help us give you more advice if we could see a statement of affairs (obviously your income won't stay the same but it will help us see the position with your assets/debts etc) - http://www.makesenseofcards.com/soacalc.html

redsam

Hi Tixy

Thank you for replying I am geting very worked up and stressed.

The mortgage is mine alone. I have done supply before and got a contract from both jobs! September is usually a slow month for supply, that and being on half pay for my last 2 pay cheques and I am very panicy.

I rang one of the cresit cards, they were less than helpful, rang the mortgage no point in extending the term as I am already on interest only. In terms of my outgoings I have cut everything unnecessary and go the cheapest utilities etc,dont socialise or go shopping much and got most of the veg from our allotment, but do have a car on HP, no car cant get to work especialy if its supply as it can be anywhere.

my debts -

cc - £15300
cc- £6700
cc - £9300
loan - approx £13000 left...need to ring and check (£229 pcm)

far too much and my own stupid fault, i havent missed any payments for anything which is good i suppose!

I suppose i could sell my furniture!