hello i have a £20000 loan with five years left to pay off and £20000 credit cards also pay £10000 towards a £20000 loan my wife has. we are homeowners have a £1490000 mortgage and our property is worth £180000 now . for first time i have been unable to pay my credit card minimum payments.wat is best option for me? iva? please help .
Hi Steve and welcome to the Forum.
An IVA does sound like an option and you should consider getting some free advice from an IP firm. Bankruptcy or debt mangement may also be appropriate and all options will be discussed with you by the IP.
You may wish to discuss your circumstances with an insolvency practitioner, but if you can afford the repayments then you could remortgage your property and pay off the credit cards and your share of the joint debt. That would leave you to pay the five-year repayment on your loan, which may be more manageable than a monthly IVA contribution and would last the same amount of time.
There are lots of factors involved here though-
Are you able to get a remortgage at this time? Your creditors may well require you to do this during an IVA anyway.
Is your wife's debt actually a debt in both of your names, or are you just contributing towards it?
Is there a reason you have started missing payments? If it is just a short term thing then it may be worth speaking to your creditors direct to reduce the payments and ask them to freeze the interest for a few months until you get back on your feet.
If you feel this isnt going to get any better then have a chat with a debt advisor and see what options are available to you and what costs are involved.
I am thinking with the missed payments a remortgage is going to be out of the question.
I recommend that you speak to an expert. Visit www.iva.com for a list of companies and reviews. Give one or two a ring for free and impartial advice as to all the options open to you and the best way forward for your circumstances.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Without more information i couldn`t really say what might be the best option for you. As Busby mentioned if you have had a missed payment this may impact your chances of a re-mortgage at this present time.
If you have missed these payments because you have been out of work but are going back into employment then it may be better to speak with your creditors direct and explain your current situation and arrange a payment plan until you are back on your feet.
If you have been struggling along for some time and find that you have now got to the stage where you could well miss next months payments as well then speaking to an Insolvency Practitioner may be your next step. The link provided by Kallis is as good as any place to start if that is the case.
