Which one?

edited 5 October 2022 at 12:36PM in Debt-free wannabe
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kezzer47watlingkezzer47watling Forumite
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edited 5 October 2022 at 12:36PM in Debt-free wannabe
I have talked to Payplan and Stepchange and am now more confused and stressed than ever.  Stepchange tell me to do a DMP and Payplan tell me to do an IVA. I cannot and will not release equity on the house this is not an option.  I find an IVA scary as it's such a formal thing.  I really don't know which way to go.
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  • kezzer47watlingkezzer47watling Forumite
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    Please help.  Our mortgage is due to be renewed in February have contacted our mortgage lender and accepted an offer.  I'm considering taking out a DMP to get myself under control.  My partner is unaware and wish it to stay this way, the DMP won't affect my mortgage will it ?  As it's also in my partners name.  If I take out this DMP is my house safe?
  • Rob5342Rob5342 Forumite
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    I've been in a similar position and you really do have to tell your partner to have any hope of getting anywhere. It was very hard telling mine, and things were difficult between us for a long time, but now we are working together to clear them instead of me putting all my efforts into trying to stop her finding out.
  • kezzer47watlingkezzer47watling Forumite
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    Telling him is not an option it just isn't he works so hard to provide I need to do this on my own 
  • edited 4 October 2022 at 9:56AM
    Rob5342Rob5342 Forumite
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    edited 4 October 2022 at 9:56AM
    Telling him is not an option it just isn't he works so hard to provide I need to do this on my own 

    That's exactly how I thought at one point, having done it I can now see that it is the only option, and that the reason I never got anywhere was because I was doing it on my own. The chances are he will actually find out at some point, he'll wonder where all that money is going, or why you can't get a loan for the car or new kitchen you want, or what all the letters are you keep running off with are, or why you want to stay with your current mortgage lenfer instead of a different one that has a better deal. It's best to deal with it now so you can move one with things.
  • MEM62MEM62 Forumite
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    Telling him is not an option it just isn't he works so hard to provide I need to do this on my own 
    With the level of debt that you are carrying he is likely to find out.  You have a big spending commitment in servicing this debt and that cannot go unnoticed.  (As you are financially linked his credit standing will be impacted)  Telling him might not be a conversation you want to have but it beats the level of disappointment he will feel when he discovered you have deceived him.  Trust is a foundation that relationships are built on.  
  • GrumpelstiltskinGrumpelstiltskin Forumite
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    If you go down to the woods today you better not go alone.
  • MEM62MEM62 Forumite
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    @EssexHebridean Brilliant post!  
  • peteukpeteuk Forumite
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    Having just applied for a mortgage we were asked about previous debt, I have two defaults on my credit score and a history of high risk lending.  The question of our DMP was asked but as it was significantly years ago it was dismissed.

    So potentially yes it can effect your mortgage, not so much this application but the next.  Once on a DMP your debts will default, that will show on your credit history for 6 yrs from the default.

    Even if your doing this solo, you need your husband on side.
    Proud to have dealt with our debts
    Starting debt 2005 £65.7K.
    Current debt ZERO.
    DEBT FREE
  • RASRAS Forumite
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    It would really help if you kept to one thread rather than starting new ones which lack any useful information. 

    But the basics are:

    A DMP is an informal solution that you can adjust or end without penalty. There are no fees. You may get lucky in a few years and be able to negotiate reduced final settlements.

    An IVA would require that you release equity in the house, has large fees, typically £9Kish, and 30% fail. You could end up owing the full amount plus the fees. They are great for the Insolvency Practitioners and introducers who make a lot of money, long before your creditors get anything. 
    The person who has not made a mistake, has made nothing
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