IVA or DMP?

Stillsmiling

We have a call with an IVA person this afternoon to discuss an IVA. We've spoken with CCCS and they suggested an IVA or DMP and to talk to the IVA person for more info before making our decision.

But I have some concerns and wonder if someone could help me?

We don't have equity in the house as we have a FirstPlus loan in addition to the mortgage.

Our info is:
Income: £3095
Outgoings: £2717
Contractual payments: £1018
Total credit debt: £39123
Leftover: £378

My main concerns/questions (at the moment!) are:
1. I don't want to risk the house
2. We own money to a family member and I don't want them to know what we are doing. Would they have to be told?
3. There is a small chance of Dh getting another job earning more which could mean paying off a DMP quicker
4. We're due a refund on insurance from FirstPlus in 2010 which I hope could be used to pay off a DMP quicker.
5. Which has the worst impact on your credit rating - an IVA or DMP?
6. Our remedy from CCS says 8 years and 8 months for a DMP but I'm hoping the refund above and possibly a new job would help reduce that.

Can anyone offer any advice that would help us make a decision?

Thanks!

RAS

I am not an expert, but I would have thought the follwing are considerations

1. how much is your secured and unsecured debt (rather than total).
2. If you do an IVA, and your house increases in value, you may have to release any equity in year 3 or 4 of the IVA.
3. You need a clear understanding of what the fees are for an IVA. A lot of people here find that all their payments in year 1 and 2 are swallowed by the administrators fees. This does not make for happy creditors.
4. On the otherhand if you do a DMP, make sure it is with CCCS,payplan or via CAB as they do not charge fees. Commercial DMP providers do and some people on here have been paying 80% of the monthly account as fees. Alternatively manage it yourselves if you can stand the hassle.
5. Some 20% of IVAs fail and then the creditors can make you bankrupt.
6. Theoretically, the IVA may enable you to cut you debt by a larger amount, but if you manage your own DMP, you may be able to make full and final offers in a few years time, which would reduce your debts.

Stillsmiling

Thanks RAS. Those debts are ALL unsecured. The First plus loan is the only secured loan (apart from mortgage) and that is around 70k.

I think I'm erring more on the side of a DMP at the moment....