IVA? Need help please, can't sleep.

Meow

I am not sure what a DMP is - debt management plan? I called the National Debt Helpline and they reccoemended the IVA.

I guess it appeals to me because I am in a mess and getting bank charges all over the place I would be able to be more organised, my credit rating is already shot to bits and I like the idea that in 5 years it will all be over.

I won't be able to pay those debts off in 5 years.

My main concern is that I don't want my partner's credit rating to be affected.

I can't cope with the stress any more.

Determined

Hi Meow

I've been off the boards for a while as I have been sorting out my IVA with CCCS. I really would urge you to call them and talk to them to find out what your options are. I can only say from my own experience that I feel the weight of the world has been lifted off of my shoulders now that I have my IVA.

I had debts totalling £75,000 and my husband and I separated in February so I really had no option. Trust me, even with this my amount of debt CCCS were brilliant and now I pay £395 a month to cover everything. I don't own my own house so I don't have the same worry as you with regard mortgage but I do have 3 kids that I am determined will have a good quality of life and a mum who isn't constantly worried about and being chased for debt. The feeling of relief at being able to have the telephone plugged in and not stopping the kids answering the phone in case it's another bullying chaser is enormous!!!

I understand the risk I am taking in that if I lose my job I will more than likely have to go bankrupt, but, ultimately I would have never been able to pay off the amount if debt I had and the risk of bankruptcy is a risk I am willing to take.

So the point of this ramble is to say call CCCS and talk to one of the advisers there. They really are brilliant and are on your side.

Determined x

Meow

Hi Determined,

Thank you for your post. I am glad that you have got things sorted out.

I will call the cccs and have all my questions ready.

Good luck with everything xx

Meow

Hi Merlot,

I am sorry I missed your post before.

The life insurance is to pay out £100k to my partner's boys if he dies. They spend half their time with us and half with their mum which is why our grocery is so high. My partner is cutting the Sky back to £20 a month.

The life insurance covers the mortgage loan of £247k which is why it is so high.

We work for the same company and there is a good chance it will be sold so need to have cover in place. It is recent cover, the best premiums I could get with the shortest excess period.

I am in a mess but my partner isn't, he is just drained financially because I can't contribute so much to our joint outgoings.

I need to get my debts sorted but I don't want it to affect my partner, it is unfair that he has a good job etc and would have to give up more than he already has done just because I have messed everything up. We don't spend anything else, no meals out or holidays etc.

We both earn more than we ever have but are in the worst shape ever. We know that buying this house was a huge mistake, so far we have dropped the price by £35k, losing all our equity and the £10k savings my partner put in. But, if we could sell and walk away with nothing at least we could rent somewhere smaller and save money.

It seems the more I look into this the more complicated it gets, meanwhile, First Direct are bugging me and I don't have anything left...

Yummy-mummy

Can someone please offer me some advice?

OH and me were all set to go for a DMP with Payplan - assessment was all done and I was just waiting for the authority letter to come out for signing. However, this morning they've rung and have reassessed our situation and are recommending an IVA. I'm so confused!!!:eek:

With the DMP we would be debt free in 22 years but may have the hassle of creditors contacting us throughout this time. With the IVA we would pay £30 a month more but be debt free in 5 years. Written down it's easy to see which is the favourable option but I'm worried about what happens if our circumstances change in that 5 years. Also, we will have to release 75% of the equity in our house in the 4th year and this worries me getting a remortgage with bad credit, obviously the interest rates aren't going to be the best rates available.

Has anyone else been in this situation? I could really do with some advice/reassurance on this.

Thanks x