Why oh why???

[stickman]

Why why won't creditors freeze interest when on DMP.
Neg eq--iva poss but looking grim---but if they froze interest then would be paid in full over remaining time in work as I retire in 10 years. Can't afford extra years on mort due to retirement in 10 years.

[MelanieGiles]

Hi stickman

Which creditors do you have who are refusing to freeze interest? If the banks want to make DMPs the preferred route of repayment, they will need to start providing some incentive for people to enter into these rather than other options.

And also why do you feel that an IVA would not work for you? How much do you owe to creditors and how much are you currently paying into your DMP?

[stickman]

Thanks Mel, you and this site are a godsend.
Current debt 48k DMP 230pmth. If they froze interest and I increased to 350pmth debts virtually paid off over 10 years.As you have seen from my other post I retire in 10 years in neg eq and can't afford interest only mortgage as payback at 5 year point is impossible.
What are the chances of creditors accepting this
or is it a non starter.
Thanks

[Oliver]

If you can afford £350 per month, why do you think the IVA is a non starter? Have you sought advice on an IVA?

[MelanieGiles]

I would say that an IVA is far better for you than an neverending DMP - and with payments of between £250 and £350 this ought to work.

I suggest you have a word with an insolvency practitioner to see what options there are available to you, and the explain the advantages, disadvantages and implications of each one.

[Andrew Graveson]

On the facts presented I'd have to agree that an IVA would be a better way forwards. Is a raise to £350 per month really affordable?

[stickman]

Thanks
Was told that as my mort payment was over 40% of our joint income also in neg eq then aposs option was a int only mort with no eq release.
like I've explained int only is no good due to retiring in 10 yrs.

Thanks

[MelanieGiles]

Worth getting a second opinion on just to confirm whether another IP would share that view.