The choice is totally up to you. If can manage to struggle (and don't forget that interest rates will rise sooner rather than later) and then be debt free in three years then go for it.
You could consider a debt management plan in the meantime and then settle your debts. It would have less impact in the long term.
Please speak to a professional as they will be able to go through everything with you and give the appropriate advice.
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
Our biggest debt in the iva is to Northern Rock, who our mortgage is with, we are still in a fixed rate deal which will change to a svr next year, so no worries about the mortgage, we just cant get another fixed rate.
full and final accepted January 2015
iva agreed; August 2010
iva would have completed; August 2017
extra year thank's to NRAM
Not all mortgage providers refuse a new deal. My provider Clydesdale did allow a new deal but apparently this is more the exception. SVRs are usually quite competitive these days and personally I don't think interest rates will rise massively in the short to medium term but that's just my opinion. You could also try to do a ive year deal before you start.
"Just when you think that you can make ends meet, somebody moves the ends."
I would certainly try and fix before you start an IVA if you can, that way you are more likely to be accepted for a new deal.
I think interest rates will start rising soon.
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
A DMP is an alternative for anyone who isn't quite ready for an iva or doesn't feel an iva is suitable...although obtaining a mortgage will still be more difficult than for someone who maintains their contractual payments. The best thing is to seek professional advice and www.iva.com is a good place to start researching a few firms.
I'm late to this but I do understand the worry. I only recently entered into an IVA and struggled like hell for about 18 months prior to it, and I mean really struggled, borrowed from my 75 year old mother, oh it was horrible. When I finally faced up to it and went into an IVA the relief was immense. If you are at the end of your credit now and you have any doubts about managing just speak to an IVA company, you don't have to do anything, but speak to them, it will help clear things up in your mind much more and they will lay all the options out for you. I was determined to do a DMP before I found out the full facts, I'm not 3 months into an IVA. It is not an easy option, that's certain, but it is a sensible option. I wouldn't dismiss it on the basis of not getting a good mortgage deal. I moved from a deal to standard rate last year, it was tough but now it's normal and I'm used to it, my debts are addressed and yes I am at the will of my current mortgage company for the life of my IVA but that's better than the situation I was in before.
Good luck whatever you decide
"It is never too late to be what you might have been"
Fiona
