advice please

[andyg]

i owe about 45000 to 9creditors. ihave set up admp with ccsand pay 125 amonth. obviously it will take over 30 years to pay it off.ihave made 18 payments.however some of the creditors are starting to charge interest and penalty charges again.i would love to be debt free after 5 years.is the iva route any good for us.wecould probably pay 250 amonth.do you have to remortgage the house after yr 4 to pay the balance. ihave about 60000 in equity. is there any point in doing an iva ie should i just try and remortgage now.i would be grateful for any advice

[MelanieGiles]

Hi andyg and welcome to the forum

You are not insolvent if you have equity of £60,000 - unless this is joint equity rather than just yours - and may be better off remortgaging now to pay the debts off. Interest rates on mortgages are still far cheaper than loans and credit cards, and although some will tell you to beware doing this due to the longer periods of repayments under a mortgage, at the rate you are going your DMP will take at least 20 years to repay!

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[mikebdomain]

Hi anyg

I have to say I do agree with Melenie

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[Adam Davies]

Hi
Yes I,ll agree with that as well.With interest charges etc you are on a neverending payment plan.As you have 60k equity it really would be best to remortgage and pay off all or a large part of your debt so that it is manageable.
The secret,when consolidating loans,is to ensure that you do not rack up credit again,so cut any cards up etc.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[andyg]

thanks for your prompt and considered advice.my problem is actually remortgaging.i got this house when i worked in yhe middle east and it has increased considerably in value my present income is no where near the amount required so what would happen in year 4 if you couldnt remortgage. also if i stayed on the dmp is it possible to offer the creditor a lesser amount. does this actually happen

[MelanieGiles]

As you are not insolvent - the year 4 revaluation and equity release is not relevant to you. Selling the property and using equity released to repay your debts might be another option to consider, if you cannot find an affordable mortgage.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[MelanieGiles]

As you are not insolvent - the year 4 revaluation and equity release is not relevant to you. Selling the property and using equity released to repay your debts might be another option to consider, if you cannot find an affordable mortgage.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[catullus]

Hello Andy

I assume that when you say that you went with CCS that you actually meant CCCS. Is that right?

If so, I'm particularly interested to know what advice or options that they gave you. It's also interesting to note that, assuming that it is CCCS, even they can't stop creditors breaking ranks in a debt manangement plan.

As to your problem, what is stopping you from selling the house? I know that the tendency is to think that you will never get back on the property ladder but, as I've said on this board before, property prices may go up and they may go down, but you can be sure that the punitive interest charges that you will be incurring will only go in one direction.

I'd be interested to hear your views on this.

[andyg]

thanks again for your interest. my agreement is indeed with the cccs. im trying to hang on to the house. im in my early 50s and have 3 children and we dont really want to move.having read the advice i dont think an iva would work for me. ill have to keep going with the dmp and maybe if i come into some extra money try and repay the creditors who are starting to charge the interest.cccs advice is that they wont negotiate with the creditors but do you think they could stop me