IVA & Mortgage Hell!

kmarx

We have just signed up to an IVA - after incurring credit card debts of £31,000. We have a mortgage of £110,000 - the house is worth about £150,000. I'm 57 and my wife is 61 (she doesn't work - health problems). Our total monthly income is £2,180.
Should we just try and sell the house and pay off all the IVA and live in rented accommodation? And if we do that what happens when I retire?

I feel we are completely screwed - and the rest of our lives will be of unrelenting poverty.

meer53

If you've only just gone into the IVA why don't you take a few months to think about things before making any decisions ?

I have a friend who is in an IVA, she had nearly 98k of debt, she's 57 and her husband is 59. They've been in their IVA for 2 years now, they still have their house and are managing a decent standard of living although lots of cuts have been made. They have about 30k of equity in their house and realise that they may have to sell at some stage but until that day comes, they are coping. They don't have anywhere near your monthly income either.

You sound depressed, have you thought about seeing your GP ? Sometimes antidepressants can help you get over patches like this. I've taken them and they made me feel more able to cope with the situation i was in at the time. They're not for everyone but it might be worth giving them a try. Good luck xx

FoggyBrain_2

HI. The house is really your security, so you want to hang onto that if at all possible. When it comes to releasing any equity, it would be very unlikley that you will be able to. It is impossible in current financial climes, and, even if this all improves in 5 years time, with the greatest of respect, your ages will be against you. So, that means you might get a 12 month extension on the IVA.

This isn't as bad as it sounds. 12 months payments are generally less than the equity which would have been required and will not add to the mortgage burden for the next lord knows how long!

The upshot of all of this is that, by the time you get your bus pass, you will be debt free. Which, at a time your income will drop, is a very good position to be in !

As said above, have a word with your GP if you feel you are getting depressed. also pop over to https://www.iva.co.uk where there are a lively bunch to chat to when the going gets rough ( or if you just want a moan or a laugh) Tell them Foggy sent you :0)