www.iva.co.uk

I owe £38K on unsecured loans and cards. I am on a salary of £28K.
I have my own property valued at £240k, but have £140k mortgage,
I can afford the payments, living expenses, and at least £200 per month. I don’t think I could raise more on the mortgage. Will I just have to sell, and move?
As that is the one thing I trying to prevent.

If you wish to stay put and you cannot raise more on the mortgage then you may wish to consider a Debt Management Programme to deal with your debts. It certainly looks like you are paying far more than you can afford so although it provides no cast iron guarantees, at the very least it will put an end to the borrowing cycle.

Regards.

As you have substantial equity in the property,you could either sell the propery and downsize to a more comfortable mortgage or carry on struggling until your debts are repaid. A difficult choice, but sometimes quality of life is more important than the roof over your head, and it will take you nearly 16 years to pay the debts in full via a DMP.

We sold up and moved into rented - tough decision butthe right one - 6 months on and although we are having to move again this weekend, renting is alot easier whilst in an IVA than owning your own property -at least when things go wrong you pick the phone up and it's resolved - no cost to you!

Downsizing does indeed seem a better option than DMP but it is your choice. Is there any particular reason why you do not wish to do so?