Author Topic: Is a DMP the best route?  (Read 1059 times)


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Is a DMP the best route?
« on: Aug 22, 2010, 01:39:57 PM »
I'm new to this forum but have spent a while looking through the posts - such a relief to know that it's not just me. Me & hubby have run up about £40k in Crecit Card debts and have a 2nd mortgage on our home. The equity in the house would cover our debts and leave about 10k so I guess we're not eligible for an IVA. We both work though he's leaving his job to go it alone.
I've had discussions with the CAB and am in the process of completing the application form for a DMP, but from working out what we owe divided by what we have left at the end of the month, a minor token payment to each credit card company is an exaggeration of what we will end up paying. We're both ex-uni students and have always been in the debt cycle, but the credit card companies kept upping our credit limits so we spent accordingly. Needless to say it's all com back to bite us now and some credit card companies keep harrassing for payment I don't have. I'm in desperate need to get this sorted as it's causing illness and I can't think of anything else. We can't risk losing our home as we have 2 young children; though I feel guilty that I can't afford to pay for a nice outing even and snap at them seemingly constantly as Im always so stressed. Would an IVA be a better bet?
Any advice very welcome, thanks.


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Re: Is a DMP the best route?
« Reply #1 on: Aug 23, 2010, 05:05:58 PM »
Hi QuackyJules,
If you could give me a little more info i will try to help you....
What would you say is the value of your property?
How much do you own on your mortgage?
How much do you owe on the 2nd mortgage?
Ashley Park Debt Solutions Ltd

Steven Jackson

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Re: Is a DMP the best route?
« Reply #2 on: Aug 23, 2010, 06:27:04 PM »
Hello QuackyJules
Given you owe £40k but the equity in your property is £50k then on the face of it you are right, an IVA might not be possible. However, this very much depends on who owes what. If the debt in your name is minimal (say £5-£10k) then it might be possible to do an IVA for your husband and you concentrate on a DMP.
The key to finding out the best solution for you is what disposable income you feel you have (ie the amount you can afford to pay your creditors at the end of each month). However, to make an IVA work you are really looking at a minimum monthly payment of around £150-200. If you can give a little more detail I am sure we will be able to advise further :)
Debt Expert

Re: Is a DMP the best route?
« Reply #3 on: Oct 11, 2010, 11:20:06 AM »
Hi Quacky
Another option might be to release the equity in the property and use it to offer a full and final on the CC's.
South West Debt Solutions.