DMP or IVA advice needed

sourcrates

It would take a long time for your debts to get to the stage where significant discounts would be available, your talking a good few years of them being sold, and possibly sold again.

The problem you will have is that you have no disposable income for a savings/settlement pot, that might change in time if your income increase substantially.

I also find it incredible that you could be given £113,000 of unsecured credit on a relatively small income.
Lots of credit cards in that list, including multiple cards from the same lenders, a few affordability complaints might be a way of reducing the debt somewhat.

Incognito212

Yeah i understand it will be a long process and as Fatbelly advised that an IVA would only take 6 years to clear, 

im feel depressed sometimes when i reflect back, i use to be so good with my money management and its like a blur dont even now how its come to this point.

Can i ask how does this work, do we both go on to IVA’s and have them linked?

fatbelly

His & hers credit cards might be ok but it is a red flag if the same lender gave you two cards

https://debtcamel.co.uk/refunds-catalogue-credit-card/
https://debtcamel.co.uk/affordability-complaints-2-cards-lender/

Incognito212

Do i wait for my payments to default before i set up a IVA or as ive reached out to stepchange let them organise it before i miss payments?

also after speaking with the step change today they advised i can go ahead with a DMP an up my payments as time goes but that will still take years for the debt to clear and an IVA seems more of an safer option?

thanks in advance 

RAS

You do understand that in 5 years time, you will be asked to release equity towards the debt? If you can't do that, you will have to make another year's payments.

Normally, with joint ownership of property, the partner not in the IVA declines to re-mortgage so the default 6th year is added. 

I think you need to take a break. Stop paying anything but essentials for a few months, tell the creditors to take your phone numbers and email addresses off their records. Read the mail once a week, and file. 

There are an awful lot of things not included in your SOA, like insurances, medical and dental, child care. Nothing for car parking, presents or holidays? Or house maintenance?

You don't yet know how the situation with your partner's return to work will go, or the child care costs associated. IVAs are based on household income so you need that situation to stabilise.

Save anything you don't spend into an emergency fund. On the creditor front nothing will happen in that time.

Diarise a review in 3 months, adjust your budget and keep saving. Unless your income increase a lot, or you can reduce the debt a lot through affordability claims, this does look increasingly like an IVA, but you need to stop spinning and think it through before committing.

fatbelly

I agree. If you do go for an IVA, you need to fully understand how they work and not just  listen to the salesmen telling you about the good bits.

Stepchange saying they are 'safer' seems to fit into that.

Take time. There is no need to rush

Incognito212

Thank you for your responses and i do really appreciate it, has given me some relief 

i think i will wait for these payments to default before i do anything,

as for my partner she will work in a school nursery and my youngest child will qualify for free childcare an her employer has offered to give him additional hours free of charge,

i have secured a secondary employment paying very similar to my first job and i was thinking the DMP route and paying 1k a month towards it an then reassessing in a years time whilst saving an emergency fund and settlement amounts

How do i go about making affordability claims?

once again, thank you for your time and help

SPM87

Why are you even thinking of an IVA for unsecured debts.. blows my mind

fatbelly

Well, they don't work on secured debts, do they?

sourcrates

Will your creditors agree to an IVA with a monthly payment of only £196 on a debt of over 110k?

That is stretching the realms of possibility quite a lot, after fee`s were taken, and other costs, they would be lucky to receive 20p in the pound on that basis, you need to think this through very carefully, and get as much good advice as possible.