www.iva.co.uk

hi there,we have been thinking of a iva but been told a dept management would be better because we won`t loose any equity in are home,now we a more cofused then ever,so i`ve stopped the iva before it has started and now have to rethink what to do we have a mortgage of £160,000 and are house was valued at 215,000 last week and are debts are about £25,000 so do you have any advice.

If thats the level of your debt you arent actually insolvent. Are you in a postion to remortgage to release funds from the house?

PD is right in that you could sell your house, repay your creditors and still have funds left. Debt management is an option as is a remortgage or secured loan. Borrowing may be difficult in the current climate so you would need to speak to a financial advisor if you think that may be a suitable option.

It may be worth making an appointment with your local bank manager to discuss unsecured consolidation but be careful that any further borrowing is affordable and does not lead to you reusing your existing credit facilities.

If the mortgage is repayment you could look at interest only for a few years and throw the extra at your debts.