DMP or IVA?? Totally confused...and upset!

sajirv · 21 June 2011 at 9:32AM

Hi all,

I'm new to all of this so in need of abit of help!!

Me and my husband have only recently gone onto a debt management plan where we are paying £872 per month to clear debt of around £45,000 (ouch!!!). However, the company who arranged it for us have now contacted me and suggested an IVA where the payment will reduce to £424 per month.
Obviously the payment sounds appealing but I am now so confused as to what to do for the best.
Due to the nature of my husband's job he is often in and out of work...earning great money when he is working but then nothing for up 6-8 weeks! Which means the reduced IVA payment would mean things on the whole would be more managable and realistic.

I am concerned about the impact on our credit rating...any thoughts on which option is best for us in terms of this?

We are a home owner paying a mortgage and at the minute we are probably breaking even in terms of equity etc as we took out a 100% mortgage 4 years ago. We are in a fixed rate until next year when we would've liked to remortgage to a lower rate...would we be able to do this? and could someone explain about the 4th year equity release/extended IVA payments please? I though it was for 5 year only?

Any help would be great!! Thanks

Ineedaname · 21 June 2011 at 9:55AM

If your husband's work flutuates then an IVA may not be sustainable and if failed would cause you more problems. It would also impact more heavily than a DMP on your credit rating, so a remortgage may become more difficult.