1st post - Advice please - IVA or DMP

[Flush]

First of I'd just like to say what a relief finding this forum was. After years of struggling with my own feelings of shame over my debts I have finally found out I am not alone and am now determined to do something about it.

Here's my situation :-

LTSB Card - 15K
LTSB Overdraft - £2.5K
Mint Card - £10K
LTSB Loan £10.8K
Northern Rock Loan - £1.8K.

Equity in the house is in the region of £10K (and probably falling).

What do you learned people think is best. I am airing on the side of DMP but I have heard a lot of stories about people not freezing the interest, which, as far as I can tell just totally defeats the object. However as most of my debt is with LTSB I am uncertain as to whether they would approve an IVA.

All thoughts appreciated.

[Viki.W]

Hey flush, welcome to the forum. I think TSB prefer to handle things "in-house" when the debt owed to them is over 75% of your total debt. You would really need to approach an IP to have all your options explained. I recommend Melanie Giles who posts on here. Don't feel ashamed, you're trying to find a solution so you should be proud. Viki X

[pjackson]

Lloyds TSB sometimes do sometimes take a view on large percentage debts but it is not always the case.

A proportion of the equity will be brought in during the IVA but it is over 5 years, then that is it. You owe almost £30k so you need to think of your payments in a DMP, you could be paying for a long time and especially if the interest and charges are frozen. I am with Viki, speak to an IP (or several) and get some advice before you make any big decisions.

[Viki.W]

Welcome to the forum pjackson. [:)] X

[Vincent Bond]

Welcome to the forum.

Unfortunately as mentioned above the people who vote on behalf of Lloyds TSB will look very closely at an IVA application where Lloyds are over 50% of the debt.

Indeed if the percentage is over 75% of the debt Lloyds will want you to deal directly with them in some kind of debt management programme. As your debt with them is around 70% of your total debt it is unlikely that they would accept this at the moment.

As for DMPs some creditors will freeze interest straight away, but some do this after 3 months- they do not have to do this, but they generally do. Remember this plan is far more flexible and you could treat it as a temporary solution until your situation improves.

[kallis3]

One of my creditors was Lloyds TSB, albeit a small one, but when I did DMP they froze the interest from day 1.

[Vincent Bond]

That can be true Jan and certainly with Lloyds bank accounts that is often the case, but this can vary with Lloyds credit cards and loans. Also it depends on the size of the monthly payment you are offering to them.

[kallis3]

Hi Vincent,

Mine was a credit card, I owed just under £3,000 and was paying £13 per month in DMP.

[MelanieGiles]

Lloyds TSB will almost certainly reject an IVA if their aggregate debt is more than 75%. In your case it is less, so this should not prevent you from having an IVA if your other criteria fits.

The key thing will be affordability. If you show that, on paper, you could pay all of your creditors in full within 7 years including your share of the equity, then a DMP is probably going to be the creditors preferred option - but as other posters have mentioned professional advice is a good first step so that you can understand the advantages, disadvantages and implications of all options in order to make a reasoned choice.

[Flush]

Thanks for your advise Melanie.

[indebtforever]

it seems we are getting more experts adding comments can only be good for the forum as melanie`s finger tips must be sore[:D]

[facingittogether]

good luck flush!

welcome to the forum you are amongst friends who will support you whatever you decide is the best way to proceed!

thinking of you

love barb x

[Flush]

Thanks all. Cant tell you what a relief it is to finally say stop.

We had a call last week from the wife's CC company telling her she was over her limit. That was what broke the camels back... I told her all about the state we were in (she had never really understood as I had wrapped her up in cotton wool). We both ripped up our cards there and then and I started to do some research, eventually finding this forum. I cant tell you how much a releif it is to know that its not just me facing this. I have contacted an IP now and feel for the first time in 7 years that I am on the right track.

I have had in the last two nights, full uninterrupted sleep, something I have not experienced for 3 years.

Cheers all.

[aguise]

Hi flush.
It is such a feeling of relief to finally realise you need to do something about it and to find you are not alone. We have all felt the way you have and had the sleeplesss nights, and all felt the relief that we are doing something about it. The forum is a fantastic place for support, there is always someone around to pick you up and reassure in those down moments. I am so glad that you are feeling better. I know I did and now see a definate end to our debt as I am sure you will.
Keep posting and all the very best from me .

Ang