DMP

[Sadsack]

Hi everyone

Need some advice on behalf of a friend please.

Friend is presently in a DMP (2 years now) with debts owing at £8k. She owns her own home, equity approx £50k. Her car is falling apart and is costing too much to keep on the road. What is the situation regarding her being able to take out a secured/unsecured loan to pay the debts off and purchase a better car?

Thanks in advance

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[ray_a]

Would have thought a remortgage might work. She would need to see a motgage adviser who could get the possible rate of interest.

However, whilst a few weeks ago I would have jumped on this advice with the turbulence going on in the financial markets because of poor lending bt banks and building societies I would have to dappen down my advice. Worth a go though!

[MelanieGiles]

Re-mortgage or secured loan. The former is likely to have a cheaper interest rate, but a secured loan could be a quicker way forward. Just make sure that he/she can afford to make the increased payments, and leave a little contingency aside for when interest rates undoubtedly rise again. (Probably after the next General Election now!)

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk