Help! DMP or IVA?????

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

rayday2

Have you read martins guide to IVA - if you search at the top you will find it.

I honestly don't like the idea of anyone getting any equity in my house so it wasn't for us. DMPs do go quiet after a few years so you won't get harrassment forever but it is your call. Can you see your income improving in the next few years (me personally my youngest children will be in full time school and my husband is getting his degree so our income will improve)

rayday2

Sorry just thinking here again for you, would you feel better starting your DMP and telling Payplan that you will in time consider an IVA you just want to keep your options open? Or are you really seeing the sense of being debt free in 5 years?

Yummy-mummy

I can't see our incoming improving drastically in the foreseeable future. Both kids are at school full-time, salaries will probably increase in line with cost of living (at least I hope they will)! We haven't got much equity at the moment and the way things are going, can't see that getting any higher. Have to say I do like the idea of being completely debt free in 5 years and still having money to live on in the meantime.

Yummy-mummy

After a sleepless night turning things over and over in my head, I've decided to put off the IVA and go with the DMP. I know its going to be a long haul but I'm scared that if anything changes in the next 5 years then we'll be up the creek without a paddle so to speak!

As I'm going to be around for quite a while, can I have a number please?

Thanks.

Krasnoludek

Hi

We were mis sold an IVA through a fee paying company and at the last moment didnt sign after being told on here not to and am so glad we didnt as we were being ripped off and given lots of duff info plus I didnt want someone telling me to remortgage in a few years either :eek:

We started our DMP in May/June and apart from one creditor (who after a strong letter copied from here) who phoned us every day then stopped calling altogether , its really not been that bad. We owe 19K and have kept in contact with CCCS and made sure we made the payments on time and replied to all our creditors letters, even if it was just to reiterate that we are on the DMP - doh!

Good luck and it might not be that bad !

K xx