73K debt advise please

John4702

thanks for your help peeps, ill report back and let u no how it goes

DramaQueen29

John4702 wrote: »

When u do an IVA do they give you any money for emergencies? Or the oddd pint down the pub? Or do they want expect u to give every free penny.

Hello

On an IVA you get about £50 a month for emergencies etc

However they tell you how much yo can spend on food which is £60 a week if i remember rightly - you are not allowed broadband or internet unless it is needed for your job.
Mobiles are out and h ave to come from a £40 phone limit a month including house phone.
Pets are not allowed into the eqausion so if you have any it has to come from that £50 although they may allow the pet insurance
you only are allowed a modest car and if you have more than one vehicle you need to prove both are needed and provide log books to show your not driving a porsche

To me myvesta looks the best to go for as they say they will be with you for the whole 5 years of the IVA rather than set it up then leave you stranded also you can get a payment break if your GF becomes pregnent etc

You cannot have any credit during this only your bank account and debit card

HTH

jmf76

Would you be prepared to sell your house and rent for a while? It sounds like it has some sentimental value for you but you'll reduce your debt and hopefully it would free up disposable income for you to add to your remaining debt to pay it off earlier (not to spend though!!!)

I can't really suggest anything that hasn't already been said but just enforce everyone else's recommendations - create an SoA for the different scenarios you're considering - now, if I remortgage, if I sell etc., speak to CCCS and/or PayPlan etc.

Life plans are wonderful things... until your life takes a completely different turn to what you were hoping to achieve!!

All the best for the future x

livinginhope

John4702 wrote: »

But i do have a life plan, as ihave said before,

Trouble is,unless you have a crystal ball,which I doubt you do life plans very rarely follow their course,things happen along the way and you have to be prepared to change,you are still young,you can do your life plan later,now is for sorting your problem in whichever way is best.I think remortgaging is only going to add to your problems and will solve nothing,it is only going to make you feel less in debt,which in turn,if you haven't sorted your spending,will make you go out and spend again,this has happened to many on this board.
Please read the suggestions given by others,they have your best interests at heart and most talk from experience

LIH

bectoria_2

John

As you can see I have similar debt levels to you. I spent a long time thinking something magic would happen and that I would be able to pay my debts off. Of course the magic moment never happened and a year ago I finally realised it probably never would!.

I appreciate your lifeplan is more constructive than my magic plan but it still might not happen. The only realistic way to get the interest frozen on your account is by setting up a debt management plan, its unlikely they will freeze interest while you are making minimum payments. Give payplan or CCCS a ring, you don't have to use them but they will give unbiased sound advice. By setting up a DMP with them the interest is more likely to be stopped and therefore give you £600 a month to pay off debts, at that rate you would be debt free in about 10 years, sooner if your lifeplan works and you can throw more money into it.

You seem to have dismissed IVA and bankruptsy and I can understand why but do not seem to have considered a DMP.

sammy115

My opinion

Do a 'proper' SOA

Income

Outgoings - Bills

Outgoings - Debts - amount owed, min payment APR - how long for and going up to how much.

I have looked and can't really untangle what you are trying to say. Are you saying that if you sold your house and paid off £30,000 you can afford to rent and pay off your £43,000? OR are you saying that even if you pay off £30,000 you will not be able to make min payments. If that is the case i would do a BEFORE selling house SOA and an AFTER selling house SOA.

I would not remortgage - you can't afford to pay your debts now - lowering the interest rate is not really going to do much for you is it?

sorry if people sound harsh. Through wisdom and hindsight they are giving you the benefit of their 'mistakes'.

John4702

Hi, how does this DMP work differently to an IVA?

I have not considered or really heard of a DMP

Thanks

bectoria_2

A DMP is an informal arrangement with your creditors to pay an amount you can afford each month. Payplan or CCCS will set this up for you by working out your incomings and outgoings and then each creditor will get an offer of a monthly payment based on the money you have left - in your case about £600.
The majority if not all will freeze interest so the monthly payments go to paying off the outstanding balance.

Downsides to a DMP - it will affect your credit rating, you will be expected not to take on any further credit while in the plan.
Also because its an informal arrangement the banks are not forced to accept the offers or freeze the interest, they can take you to court but generally don't because the order will be to pay what you can afford (ie the same as you initially offer).

I have similar level of debt to you and only £190 per month available, it was tough to begin with but all my offers have now been accepted and each month thats £190 less I owe!

If you have any more questions post them here, there are lots of us on DMPs.

danno_4

John4702 wrote: »

Hi,

Well its times too take charge of my stupid youth.

Im 27 and now in a good job, partner works to.

I have 73K of debt

A mortgage of 110000

So a total of 183000

My property has been valued at 155000

So if i sold up and rented i would be looking at an outstanding balance of approx 30K

My take home per month after tax is £2200

And my partners is 700

Total of 2900

I have had a mortgage agreed for 140000, thus releaseing 30000 and my 73K of debt goes down to 43K, I am scared i may not be able to maintain or reduce this level due to my stupidness. I want a one stop solution.

I think going bank rupt is a bit extreme.

Im not sure about an IVA as wont it eat up all my spare cash, i know, i know but what if my car goes wrong how will i pay for that? or the boiler blows up etc.... I wont have any emergency funds, will i?

I was thinking of taking the remortgage and then trying to offer my 73K of creditors 30K... not sure that idea makes any sense.

Advise please!!

Ah and i have kinda just hot the ceiling on my credit cars, meaning i have been stupid enough to put my self in a position where i cant transfer balances to take advantage of low rates so soon the interest will kill any disposable cash any way.


Thanks

Hi john,remorgaging is not the answer you say you have got 73k of debts,its difficult to give real constructed advice without knowing, the proportion of the debts to each creditor,firstly as any creditor got judgment against there debt.have any creditor started court procedingslets deal with these two first.if they have judgment i would make them a small ofer,if they refuse ask the court for a form to offer payment(costs about £30;00)if procedings have started make them a reasonable offer of payment if they refuse and they continue procedings and they get judgment this should stop them from getting a fixted charge on your property you may have to fight but th law says if you are making payment then they can not turn an unsucured debt into a secured one.hope this helps mate.if you require any more help contact me on my email stephendanielsc@.
good luck pal

danno.