Secured Lending as last resort

Pixie5740

carlyfarley wrote: »

I don't want a DMP, its IVA or secured loan. I know its not 2007, although I'm sure I've seen this response from you before.
We do have a decent amount of equity, around £60000

You mentioned you were considering a DMP/IVA or secured loan not that you'd discounted a DMP even though it's probably the best solution for you.

No, I didn't respond to your previous thread but the advice given was not to turn unsecured debt into secured debt just the same.

https://forums.moneysavingexpert.com/discussion/5163538

carlyfarley wrote: »

Thank you Dancingfairy, I really appreciate your friendly and helpful response. I seem to get attacked every time I post on here x

Do you feel attacked when people tell you something you don't want to hear? You cannot borrow your way out of debt. This board is full of people who've been there, done that and got the t-shirt. Listen to what Step Change are telling you, they're experts in this field.

carlyfarley

I have read through Martin Lewis guide to Ivas, plus various others. I have been researching them since Christmas. I am aware it's more severe than a dmp but it's arranged, it's official, no chasing, a clear end date. None of these things are guaranteed with a dmp. On the support threads, nothing is guarantee and everyone's experiences are different, some sound awful. 11 years is a long time.
I don't feel attacked when I hear something I don't want to hear. I just found your 2007 rant rather condescending, we are all equal. also, I sure I've seen you use similar replies to others.

I have listened to step change, of course they are offering the lesson severe option, I'm just not sure if the uncertainty suits me

mc2705

I am not quite debt free yet, but I have been in a similar postion. I owed around £35k at my worst and I didn't even have a house to make a secured loan an option!

The trouble with consolidating is that the cause of debt (and the amount!) isn't solved. I would get a loan to pay off my existing loans, overdrafts and credit cards and think that I was solving an issue, when in actual fact I was just ending up with a bigger loan and would continue to use my overdrafts and credit cards... and the cycle would continue. The only way to solve your debt is by dealing with the debt, not just moving it into another debt.

Pixie5740

carlyfarley wrote: »

I don't feel attacked when I hear something I don't want to hear. I just found your 2007 rant rather condescending, we are all equal. also, I sure I've seen you use similar replies to others.

I have listened to step change, of course they are offering the lesson severe option, I'm just not sure if the uncertainty suits me

That wasn't a rant, I was just stating a fact. Secured loans are much more difficult to come across now than they were in 2007 when the television was awash with adverts from the likes of First Plus, Norton Finance and Ocean Finance. I bet many people who took out those 25 year secured loans bitterly regret it now.

Clearly you've decided to ignore the advice from Step Change and many other posters so good luck with your IVA, I hope it works out for you.

Time_to_face_the_music

carlyfarley wrote: »

I don't want a DMP, its IVA or secured loan. I know its not 2007, although I'm sure I've seen this response from you before.
We do have a decent amount of equity, around £60000

Hi carlyfarley :hello:

Have Stepchange explained why they are recommending a DMP rather than an IVA? It would be worth you asking this question, though I suspect it's to do with the amount of equity you have in your house. I know you have read up on IVAs but it's worth giving a bit more time to the consideration of having to remortgage and release the equity to your IVA.

11 years for a DMP sounds like a long time but many people find they are able to reduce the original timescale. As for being chased and hounded, the first few weeks can be a bit tough but it quickly settles down. If you wanted to, you could have a read of the DMP& Mutual Support thread and then ask any questions you need to:

https://forums.moneysavingexpert.com/discussion/4988866

Good luck with whatever you decide.

TTFTM x

Grumpelstiltskin

Carly You are quite within your rights to ignore what Stepchange advise but please be 1000% sure you have fully researched all the options and an IVA is the best way forward.


We don't want you to come back in 2/3 years time saying ' my IVA has failed because ....................'


If that happens you may be forced into bankruptcy and end up in a much worse position.


With a DMP that shouldn't happen.

Puzzcat

Hi Carly,
I am 16 months into my dmp and can say I have never been hounded or chased! I was the queen of consolidating hence my start debt of 60k..it is now nearer 50 so getting there slowly!
I wish you well with whatever you decide to do. A dmp for me has been the best financial decision I ever made.
Puzz.x

leicestersq

Is selling and renting an option?

Will cost lots to move, but you may save even more in interest payments, particularly if you can't pay down much capital now.

Think carefully about this option though.

fatbelly

PinkPoppies wrote: »

How much do you know about IVAs? Give me a DMP any day. Please have a look at this- http://images2.moneysavingexpert.com/attachment/ivaGuide.pdf

I'm not a big fan of IVAs but this guide is years out of date - was it written in 2007?

For certain situations (and this may be one) I would consider an IVA

I suggest you talk to the guys on the IVA board.

carlyfarley

I really do appreciate all of your replies, I'm very confused at the moment so need to talk to step change again. It's just the uncertainty and no clear end of the dmp that scares me to death. You all make it sound so easy though.
puzzle, you're very motivating and ttftm, what an amazing amount of debt you've paid off! How the hell did you do it that quickly??? X