been trying to solve my debt problems on my own

[chaoscorner]

I am currently considering an IVA. I own a house in joint names with my husband but all my debts are in my sole name. I also have lost my hearing over the past few years and so am unable to use the phone - I am terrified that companies will contact me by phone? Two questions - can I make provision so that my mother is the point of contact and not here at my personal address and secondly - will my home be at risk if i enter an iva agreement? thanks I have been trying to solve my debt problems on my own but am now considering the iva option as i can see no way out o fmy current situation without my husband knowing thanks

[MelanieGiles]

Hi chaoscorner and welcome to the site

You are correct in saying that your husband ought to now know about your difficulties. I am sure that he will be sympathetic and supportive, and be worried that you have carried the burden of this for so long on your own.

Firstly, you could advise all of your creditors to use your mother as a point of contact. Explain to them that you have hearing difficulties, and that she is authorised to deal with your affairs. You will need to put this request in writing, so that the creditors do not fall foul of Data Protection issues.

Secondly, if you have equity in your property at the moment, this will need to be disclosed to your creditors within an IVA. Can you tell us how much your house is worth and the amount of the outstanding mortgage, and I will be able to respond further.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[chaoscorner]

our house is worth £300k and have only £2k outstanding on our mortgage. Everone I have spoken to says why dont we just remortgage but I dont feel it is an option as it is my debt not my husbands. I feel very strongly about this but maybe i am not in a position to make a choice.
I earn a good wage so maybe if I look at our total expenditure and income etc I can find another solution to this problem
thanks for your reply

[MelanieGiles]

So you have £298k equity to share between you! And your share is therefore £199k? Unless your debts are more than that (doubtful???) then your equity is your asset, and if you choose to use some of that money to repay your debts this does not affect your husband. I am sure he has benefitted in some way from your debts in any case - especially if the credit has been used to fund household expenditure.

If you owe less than £199k then you are not insolvent and an IVA would not work in any case. The cheapest way of borrowing at the moment is via a mortgage, and therefore I suggest you give that serious consideration.

If you are concerned about how this will affect your husband, why don't you agree to fund the new mortgage payments personally, and therefore he is absolutely not affected?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[chaoscorner]

thank you for your reply. i hadnlt really looked at it like that before - I have been so consumed by my credit cards etc that I have just felt like I am drowning. I thought that my only option was IVA or a debt management programme but I think that my answer lies with being truthful with my husband and being able to sort my debt problems that way. i will give it serious consideration. Thank you for your time. I know that if I can get things back in control I will never touch a credit card again. I just want to get back to a "normal" life.

[chaoscorner]

I did mean to say that my debts are mainly credit cards but have a couple of loans too - all in all about £85K. I earn £30k a year so have always thought that sonehow if someone would lend me the money I could pay it back so need to find courage to ask him for help.
I have lost my hearing over the past few years and have coped by spending! Very stupid - mostly just on the family and everyday expenses rather than wardrobes full of clothes or handbags. No excuses I know but again thank you for your advice. I think today could be a turning point in my life

[MelanieGiles]

Don't beat yourself up over this, you have made great progress today just broaching your problems with a bunch of strangers!!! Your debts have resulted from some comfort spending, which has been a prop to cheer you up as a result of your failing hearing, and it is now time for you to put that in order and move on with your life.

A mortgage of £85,000 will cost you approximately £425 per month on an interest only basis - more obviously if you take it on repayment terms which is most advisable. I am sure that payments at this level ought to be affordable given your current salary.

Your hubby will be more than happy if you are able to service this debt - which ought to be a lot cheaper than you are paying out at the moment. You might even be able to negotiate settlement figures with your creditors at a lower level thus saving you more money.

If you need the details of a good mortgage broker, I am happy to recommend someone I use extensively for client work. Do let us know how you get on. There are a lot of people posting at the moment who have been afraid to tell their partners, so any tips you could give with regard to that I am sure will be gratefully received.

Just think - that extra money you will have, having got rid of those debts can be put to good use again. I sense a few shopping trips coming up in th future - but do beware of credit in the future and make a pact with yourself to have a "plastic-free" purse!

My very best wishes to you for the future.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk