I have loan, credit card, and overdraft debt of £47.3k. I have a temporary debt management plan in place for another 5 months only for a loan of £23.5k. I am a homeowner. I am also looking for a new job with a higher salary. I am struggling to live each month on my disposable income and am becoming increasingly worried about my debt. I am considering selling my home and paying off some debt with the equity, however this will mean starting off again on the housing ladder, whilst also looking for a new place to live which will be rental and all associated costs. Ideally, I want to re-arrange my debt and keep my house. Please advise on any possible solutions for my situation.
There are a number of options and it would be advisable to speak to a number of companies.
Andy Davies, Lisa Thomas and Michael Peoples who contribute to the board all represent organisations that may be able to provide initial advice.
They are recommended because of the generally positive feedback from the board.
You could also speak to Shaun or Ryan (found under ask the experts) or might be able to give you advice on the impact of selling, getting a future mortgage etc.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
An IVA sounds like an appropriate solution as it appears that you have equity to protect and you have an income to fund any arrangement. There are other alternatives but certainly an IVA could be better than selling and starting again. Your credit file is likely already damaged due to the reduced payments so a remortgage may be difficult and expensive.
I agree that you need to speak to a company who can advise you.
I recommend speaking to Andy Davie/Vincent Bond for some initial advice and a possible way forward.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi Graeme - an IVA sounds like it might be suitable for you but its difficult to say for certain based on a small bit of information over a forum. Suggest you speak to an IP like myself or Michael and get some firm advice on the way forward.
Hi Graeme
Think very carefully about an iva especially if you are working in any kind d of finance capacity. Also if you think you might be changing employment in the next 6 years. An iva is not the best for everybody talk to your local citizens advice bureau before you do anything. Good luck with whatever you decide
Given that you appear to have equity you could find yourself doing the iva and then saddled with a secure loan at the end of it to release equity.
Anything you can do to make yourself debt free without an ova do so.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
The last two posts may not be very popular, but do contain some very good points. Insolvency clearly isn't for everyone.
I would only disagree to the point of commenting that anything you can do to make yourself debt free without a never ending DMP is worth considering, and securing unsecured debts against property also clearly carries it's own risk as well. Further borrowing when you are already struggling is fraught with danger too.
I would suggest that getting advice from an organisation that doesn't stand to benefit financially from helping you is a good place to start. I make no recommendation as to where that should be, as my understanding is that that has always been against forum rules. This may have changed of course, as I do not post on here as often as I used to, but if so I was not made aware of any changes to that particular rule.
Regards.
Last edited by size5 on Fri Nov 27, 2015 3:53 pm, edited 1 time in total.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
I contribute but have no official function wit this board - the CAB or size5 organisation may be a good start if you need free advice.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
I agree that taking advice from free companies is an option but many of these gain financially anyway. Many charities are paid a commission by the banks to collect the money and even have their own IVA arms which charge the same fees as everyone else.
It is best to take a few soundings as some 'free' firms have dubious independence and also may not have the experience necessary to deal with serious insolvency issues. Ultimately only an IP can propose an IVA and if that is the correct solution you should end up with one. Unfortunately that is not always the case and countless people are in unending DMPs because they do not even know that an IVA exists.
I also have no official link just giving my opinion based on the difficulties with employment we have faced and if given the full implications on employment before going down the iva route would have seriously considered the option of trying to release the equity in our property again this is just my opinion
Every IVA proposal I have ever seen from the organisation that I think Michael may have been referring to has a much higher nominees fee than commercial organisations can get, so I do accept that some free organisations are anything but in reality. Even some CAB's are getting a referral fee from Clear Start, so I believe, so it does indeed pay to shop around.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
The following companies are part of the same group:
Clear Debt
Debt Free Direct
Lawrence Charlton
Moneyextra.com
Writefully Yours
Simpson Millar
Its a similar type of set up with some of the other IVA companies - look at what group they are part of/actually owns them.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
I was with Cleardebt and never realised they were part of the same group as Debt Free Direct. They are listed separately at Company Check and have different directors.How did you find the link LNE?
We were with Cleardebt and couldn't recommend them enough yet I have always had a different view of DFD.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
