A little Advice

Mcata74

So I have got myself into a little trouble financially - long and the short of it is I made a lot of money trading CFD'S but have now lost it all plus a lot more. 

So having battled with addiction problems over the years this was my latest addiction and fortunately now getting some proper help. 

So in essence I am now £80k in debt, been speaking to Step Change and they have set up a DMP for me which will take 11 years to pay off. 

Currently I am on the morgtage with my wife and we have a sensible amount of equity currently. This current deal ends in April 2023.

I am not sure really what to do as when we come to renewing the morgtage we wont be able to move die to my credit rating. So we either stay with the current provider or I come off the mortgage.

I am now thinking a IVA or bankruptcy is the best way forward although not my ideal choice. 

I also work on commission so wages can vary.

Ideally looking for suggestions as I read mixed views of IVA's - plus I see a lot of companies pushing them to get the commission. 

Appreciate any help / suggestions 

sourcrates

Re-mortgaging with your current provider does not initiate a fresh credit check, so should not be a problem.

You're looking at DMP of 11 years, or IVA of 6 years.

Bankruptcy not an option as you have a house, even "coming off the mortgage" would still leave you with a beneficial interest, so house would still be at risk.

Mcata74

Hi, thank you for your reply I wasn't aware about coming off the mortgage and financial interest.

With an IVA is there a recommendation or shall I go through Step Change. My credit rating is buggered now which is a shame so an IVA is a better option than bankruptcy.

Thank you for your help 

MalMonroe

Hi, if I were you I'd go back to see what StepChange say, it only seems polite since they set up the DMP for you. Did they mention an IVA also? Or a reason as to why they didn't recommend it for you? Whatever, it's a free call and you've already been speaking with them and they've recommended their solution.

There's a link from StepChange about IVAs below. Never pay anyone to help you with debt when there are three excellent free debt help agencies available. StepChange you know, there's also National Debtline and Citizens Advice (as per sourcrates' signature, above.)

https://www.stepchange.org/how-we-help/individual-voluntary-arrangement.aspx

Your credit rating is never seen by anyone else but you, so that's not bug****d at all. Your credit history, however, has taken a bit of a beating. But it's only temporary. Many of us on this forum have been through similar, and survived to tell the tale. 

sourcrates

You said it yourself, you work on commission, so wages can vary.

An IVA requires you to have a regular income, as you make at least 60 monthly repayments to the arrangement, they must be paid on time, and in full every month.

As your income varies, it`s not guaranteed, so therefore you could not commit to an IVA, nor would one be recommended for you in those circumstances.

sammyjammy

Make sure you book a new product with your mortgage lender as soon as you can, it might be three months or six months before so check, the sooner you can do that the better the rate will be the way things are at the moment.

Sounds like DMP is your only option, just throw everything you can at it.