Finally accepted im in trouble

bluelewis

Hi everyone,after years of moving debt around we have finally run out of options,ive been reading lots of posts of peoples differing circumstances.i realise im not on my own.

i have been on cccs and entered all my info
they have advised either an IVA or DMP but im totally confused which one to go with,With a DMP it will take about 10 yrs to be debt free providing the creditors agree to drop the interest.whereas if i go with the IVA i could potentially be clear in 5or maybe 6 yrs.

My problem is im just entering into a 4 month period where i get lots of overtime at work and earn good money,but then in spring and summer i earn just basic wage and cant pay the bills
do i go for it now or wait untli the spring.

One other problem is because our loans are mostly joint accounts and our overdraughts are also joint, my wife has a hp agreement
is there anyway we can go down the IVA or DMP without losng our car we only entered into the hp in july.
I accept that we alone are at fault for our predicament how on earth have we been so daft.
Any advice greatfully recieved.
below are our debts.

1# aa personal loan £15000 over 9 yrs only 3yrs old £195 pcm
2#aa credit card £5200 at fixed rate life balance £60pcm
3#rbs credit card £850 on limit £20 pcm
4#lloyds tsb credit card £1250 on limit £30 pcm
5#tesco credit card £3800 on limit life balance £70 pcm
6#debenhams credit card £450 on limit £15 pcm
7#lloyds bank account overdrawn £2100 always used
8#lloyds bank account overdrawn £900 always used
9#halifax bank account overdrawn £750 always used
10#blackhorse finance hp £11500 over 10 yrs £160 pcm


I know this is a really silly question and think i know answerr already
but if the wife took out a loan to pay off hp could we then put loan on iva or dmp

cheers to everyone who relpies good or bad

plummer_in_van

Hi Bluelewis.

Me and my wife were in a very similar situation to you.We were living off credit cards and overdrafts.
Took out a £25,000 loan over 10 years(secured) etc.

First i would ask if you own your own house?

Any equity in it?

We are with the cccsva and have just had our IVA approved. I decided to go down the IVA route really to protect our house from our creditors. We had a few conversations with the cccs about our income, debts etc to decide if we were insolvent then was advised to go the IVA route.
Did not like the DMP route because i understood it to be informal agreement with creditors.

I have a good job but our income is different every month, but whoever you decide to go with would work out your average income over the year, they would work out a budget with you and then work out how much income you have left.

Working out the budget, you have to be 100% honest with yourself and put down EVERYTHING THAT YOU PAY OUT! because if the budget is not right your IVA(if thats the route you take) would not work. Let the company who you go with decide if you are paying too much on anything and work out the budget for you.

Try and have a look at the IVA site and have a look at all the questions people put on there, you will find a lot of good advice and it will give you some idea of how things work.

One thing i would say, do not go with the first company who promises you the earth, there are some out there who talk the talk but have no idea how to walk the walk!!!!!!!

It took us a bit of time to get things sorted( we are with the cccs), but there are loads of very good companys out there who can help you.

Hope this has helped you a bit and good luck.

bluelewis

Have just got off phone from creditdebt and went through all incomes outgoings and creditors and seemed to still have a disposable income of over £500 and i can be debt free in 5 yrs and keep the caravan i feel like a lorry has just off my body still a long way to go but im real happy.
he said i wouldnt be accepted on iva so we went for dmp

Baggiebird1nil

Please don't go for a company that charges. There are plenty out theres that do not charge the earth. We started off with Debt Matters and in the months up to when they went bump they hassled us to double our payments. Payplan then took over and they were absolutley brilliant. No condesending phone calls and they really helped. Been debt free since June of this year and we now have a proper life. Best lesson we learnt is that if you can't afford it either don't have it or save for it. Came back from a brilliant holiday last month knowing that it hadn't gone on a card and that it would take years to pay off. Brilliant feeling!