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Posted: Thu Mar 20, 2008 6:42 pm
by wisewoman
Due to me being disabled and unable to work, our debts built up and borrowing from one card to pay another made things worse.We have been on a DMP for 18months approx.Our joint debt is about £54000.If we were to offer a one off payment,what sort of amount do think would be acceptable.We might be able to sell our house to our son and rent it back.This will release some equity that we could use.I understand that you cannot be precise,but I would like some idea of whether this would be appropriate for us to do. Thank you
Posted: Thu Mar 20, 2008 6:47 pm
by Adam Davies
Hi
As you know it really depends on many factors.
How much equity do you have in your house and how much are you paying into your debt management plan each month
Regards
Posted: Thu Mar 20, 2008 6:57 pm
by wisewoman
The equity is about £44000 and we pay £135 a month into the DMP.
Posted: Thu Mar 20, 2008 7:04 pm
by size5
Would it be too rude to ask who your DMP is with, the reason I ask being that an informal settlement may well be more in your best interests?
Regards.
Posted: Thu Mar 20, 2008 7:08 pm
by size5
Also, how long has your DMP been running?
Posted: Thu Mar 20, 2008 7:10 pm
by wisewoman
We are with Payplan.
Posted: Thu Mar 20, 2008 7:21 pm
by size5
Ok. Without more info I cannot advise you except in a hypothetical sense, but my gut feeling is to say to you that an IVA proposal would be viewed favourably, though if I were you I would keep my powder dry just for a little while yet.
On assumption that your DMP with Payplan is working ok, the course I would take is to contact each of my creditors individually and hint that you have a lump sum coming, the amount of which you are not certain of yet, but which will not be enough to cover the debt. Any reasonable creditor will be happy to offer you a significant discount in return for a cash injection. Make sure that it is in writing though.
Add everything up and see where you are then. If you can get decent discounts then you will be able to keep any extra money you have raised and will have avoided any fees for an IVA proposal.
Conversely, if they are not willing to play ball with you then you have only lost the cost of some phone calls to find out and you can reconsider your options then.
Regards.
Posted: Thu Mar 20, 2008 7:26 pm
by wisewoman
Thanks for your advice.I will give it a try.
Posted: Thu Mar 20, 2008 7:35 pm
by size5
Please let us know how you get on.
Regards.