Hi there, this is my first post, really could do with some advice as I am confused and so stressed about what to do for the best.
My husband and I have unsecured debts of around 28K and a secured loan of 18K. We recently entered into a DMP with Debtfixers, we paid them £250 to set up the programme and have made 2 payments of £150. All was going well until the final creditor HSBC came back with a refusal to enter into the scheme. They are our main creditor we owe them £22000 and it is already a managed loan. We are paying them £300 a month and the DMP offered them £92.
We are now considering an IVA as the next option as I have just been made redundant and we cannot afford the minimums. Our details are...
HSBC managed loan £22000
Welcome Finance secured loan £17500
Alliance and Leicester credit card £4000
MBNA credit card £1100
Capital One credit card £100
Barclaycard £400
To be honest it is the secured loan which is killing us...we took it out in desperation and we are paying £400 a month on £17500, the interst rate is just stupid.
I understand that secured loans cannot be included in an IVA, so am not sure now what to do.
Any advice would be greatly appreciated! Thanks.
Hi and welcome
Sorry to hear of your redundancy. Do you think you will be able to secure employment in the near future? If not, does your husbands wage leave you enough disposable income to pay for everything?
Lastly, how much equity do you have in your property?
She said on her earlier post that she had posted elsewhere as she was confused as to whether she had done it or not.
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, yeah so sorry, I posted first as DianeM but my computer crashed so I wasnt sure if it had worked. (blush!) So I am DianeM and DaisyW, one and the same!
My house is valued at £116,000, mortgage is £94,000 but we have a secured loan of £17,500, so no equity there unfortunately. We did go to the bank before we took out the secured loan for a re-mortgage but were told because of the current financial situation everywhere, no bank would re-mortgage to anywhere near 100%.
Not sure if we are going to be able to afford yet, have applied for jobseekers, but no idea how much that is, I have redundancy cover with my mortgage re-payment protection insurance, and I have informed Tax credits of my reduced income so thats going to be adjusted but not sure what to. Until all these three come through, no sure what my income will be.
Thanks again for your advice and sorry for the confusion. xxx
DianeM/DaisyW - please re-classify your debts as to what are yours and what are your husbands and what if any are joint. I will then be able to advise.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Ok,
HSBC and Welcome finance loans -joint
Alliance and Leicester - mine
MBNA - mine
Capital One - Mine
Barclaycard - we both have one but mine is very small now about £100, main debt with husbands card.
Does that help? Thanks.
Hi Daisy and welcome to what is a great site and full of information as well as support, i hope that you are able to sort your problems out and have peace of mind at the end of it, the experts on here are very good and will i'm sure be able to guide you.
Take care, be safe and good luck.
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.
IVA COMPLETED August 2012, received Completion certificate 18.4.13.
My biggest concern at the moment is the loan with HSBC, Debtfixers are allocating them £92 from our DMP payment, as I mentioned they have refused to accept this and last month just took the money from our account. We are going to close the account down, there is nothing in there now anyway, but what will they do if we stick to our guns and our DMP plan?
Also, is there no way of including our secured loan in an IVA?
Thanks. x
Cannot include your secured loan in an IVA. You should get your debt management plan provider to negotiate with HSBC and try and get them to accept a figure that is within your DI.
There maybe away of one of you to propose an IVA and one in a DMP - I would need to see all the figures of debt and both of your I&E first though
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Sorry you have given the figures in an earlier post - I'll check on Monday if there is anything anyone can do by checking with my colleagues.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Is £150 per month all you can afford to pay to creditors on a monthly basis? With little or no equity in the property, wouldn't bankruptcy be an option worthy of consideration to bring an end to your debt problems for good?
Thank-you David and Melanie for your replies.
We need to re-do out I&E, obviously at the moment with the redundancy I am not sure how the money situation is going to work. Our mortgage is a homestart one, interest only payments for 3 years, then it turns into a capital re-payment (with a big hike!) next May...so we were anticipating that. The secured loan is rediculous, as much as the mortgage. I also had nursery costs which took over half of my income, I did receive extra tax credits to help with childcare but they have been taken off me now as Im not working. Our personal expenditure is very low, however my husband commutes and spends a lot on diesel.
I look forward to any help with this big mess!!
xxx
