going on DMP - should we sell house?

[Deleted User]

Hello!

Well done on joining MSE & getting advice from the experience DFW's :T

I don't have much to add except for this: please get some emotional help/counselling to work out *why* you ended up in debt and why you felt so scared about money. I am concerned that you would maybe end up back in debt if the underlying issues aren't dealt with?

I wish you every success and hope it brings you closer to your husband and family too.

GreenSaints

Hi,

I've just found your post and didn't want to read and run. Congratulations from coming out of lurkdom! We are all nice here

I've not had a DMP, but so I can't give you any specific advise, but if it was me, I'd agree with the others and stay in your home and pay off your debt. You don't want to pay someone elses mortgage if you don't have to!

My debts were nearly as high as yours, so don't feel bad. We've all been there

Good luck with your journey - 57 months is nothing!

x

Gimpsdad

Chrisblue, is there any reason why you are on a 16 yr DMP? Do you have loads of equity in a property to protect, or an employment role? As a rule of thumb, 7 years is the maximum you should consider a DMP over, unless there are compelling reasons. If there is nothing to stop you, have you considered an IVA or a BR?

I would ask hatecreditors the same question, with no equity in the property, have you considered looking at the legal protection of BR or IVA rather than the insecurity of a DMP?

Hatecreditors.com

@Gimpsdad BR wasn't an option for me (would have lost my job). I didn't want to pursue an IVA as I read somewhere that if creditors didn't accept the proposal they could apply for your BR (which would result in the job loss).

Luckily for me my DMP will be paid off in 2 years (possibly less subject to pay reviews and bonuses etc).

Gimpsdad

What you read was and is wrong, but no matter now, you are naerly there and I wish you the best.

Chrisblue1962

Gimpsdad wrote: »

Chrisblue, is there any reason why you are on a 16 yr DMP? Do you have loads of equity in a property to protect, or an employment role? As a rule of thumb, 7 years is the maximum you should consider a DMP over, unless there are compelling reasons. If there is nothing to stop you, have you considered an IVA or a BR?

Thanks Gimpsdad, as a far as I can recall, the`IVA or BR route was never offered to me by CCCS as I think DMP was thought to be the best option when starting it.

I owe just under £18K, now paying £92.00 / month and happy with DMP at the moment but thank you for the info / idea.

cottonhead

I would not sell my house just in case. Its a great idea to say you would save but would you actually do it ? You never thought you would get in debt and you did. I would just want tp protect my home at all costs as its not just you that will be affected by that choice. Renting is just paying someone elses mortagage. If you stay in your home you will also hopefully have more equaity to play with at the end of the plan. Also 4 years on a plan will go much quicker than you think. So no I would not sell my house but keep the debt and house issue seperate.

Gimpsdad

Unbelievable.

Truly unbelievable. If CCCS were not a "charity", which they aren't in the true sense of the word anyway, then I would advise suing them for all they have. Which is a lot by the way.

You have done enough time already. Your own signature seems to indicate that you have paid off the grand sum of less than £1,300 in nigh on 3 years. You may be happy to pay £92 for on another 187 months (assuming interest freeze, but that hasn't happened. If you have paid £92 per month for the last 33 months, if it had been frozen then you would have cleared over £3k) but that is mad. If you can get to £100, then a 60 month (£6,000) IVA is possible, Or go BR instead. For goodness sake, this is a money saving site, and you are happy to pay greedy creditors for 16 years at the behest of an organsation that collects debts, at a fat commission, on behalf of said greedy creditors whilst admitting that you were mis advised by the said same creditor funded organisation.

Had you have got real impartial advice in July 2009 the you would either have been completely debt free now for nearly 2 years had you have plumped for BR, or, if you had decided on IVA then you would have a little over 2 years to go. Not 16 and happy that it is 16. By the way, this is not a criticism of you, far from it, a drowning man will always accept the 1st life belt thrown to him, but it is certainly another of the what seem to be never ending stories of debtors being misled by creditor funded agencies.

Even if you ignore this, as you probably will, then do yourself a favour in the morning and ask them why you weren't advised as to all your options previously, and also ask what you can do going forward to make your journey shorter. Don't be surprised if they recommend that you continue doing what you are doing.

I despair sometimes, I really do.

DS4215

Nivea wrote: »

You are inspriational, you have really tackled your debts and its fantastic you are so close to the finishing line - well done
I didn't include bonus, I getit every Feb and the £8k ispost tax, have discussed with DH and decided I will put it all towards the debts, if I do that twice thats £16k off the the lot what with my monthly payments of £746 i am hoping we will be back on track in 4 years time.

When you get the bonus in Feb, write to your creditors and make a full and final offer towards the debts - you might be able to settle for less than the full amount owed and knock even more off...

mini10

Hi Nivea,

Your post caught my eye as I have been thinking of doing exactly the same thing, the thought of selling and being able to pay of debts is very tempting....

I owe approx £40k, I havent had the courage to add it all up properly and I am very ashamed to be in this state. I dont think I have anywhere near that equity in my house but as my high mortgage repayments (approx £900 per month) have meant I have lived on credit cards for past few years then to go to a cheaper rent again is tempting.

I havent mentioned it to my DH yet as I dont think he would be keen. Was thinking of having house valued by Estate Agent and seeing state of play then.

I hadnt thought about a DMP, that might be worth us looking at - will that affect credit rating for things like phone contracts and renting do you think?

Will follow your thread with interest- good luck.
Mini :