Your views and questions.

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By Sammy
#67380 Just some thoughts going through my mind and if your response is 'no way ' or 'don't touch it with a bargepole' please tell me :)
As I think many of you know I'm in a DMP with Payplan. Most of my creditors have accepted except Barclays Bank - now passed to CDCS - although Barclaycard and Barclaycard Masterloan have. The other one is GE Money.Both of these represent debts of around £3500 each
My total debts are about £51000. At the moment I have been paying £322.47 a month - my circumstances have changed slightly - pay increase - not huge and also I decided to cancel a life insurance - it just seemed to me to be money I could offer to my creditors
Accordingly I now pay £380 per month
I'll be 57 at the end of July. I work in local government which means I'll be old enough to be able to retire at 60 if I want to but I can carry on until I'm 65. When I retire I'll have a lump sum of around £24000 - it'll probably be more then
I own my own house outright - when my mother died 3 years ago I bought it for about £74000. Obviously I can't downsize and my main concern is to protect the house. I know Norwich Union offer equity release schemes but even after 60 the most I could release would be £16000, and it's something I'm very wary of
Do you think in view of the lump sum that I should consider an IVA over 3-4 years ? Would they leave the house alone or would it be at risk? As far as the lump sum is concerned, I'd like to keep some but would certainly be happy to offer about £17000
There's also the possibility that in view of the fact that pay increases in local government tend to be around 2% that I could offer more in coming years say around an extra £20 per month
I don't want to phone Payplan yet as I know they're very busy and if the IVA was a sensible route I would much rather go with them as they've been so incredibly helpful, but I just wanted to get other people's views
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By Yogi Bear
#67841
Sammy wrote:Just some thoughts going through my mind and if your response is 'no way ' or 'don't touch it with a bargepole' please tell me :)


Hope you don't mind if I, as a newbie, take you at your word, as my situation until quite recently bore some very striking similaries to yours, especially on the employment front. The plan I had was to continue paying off my debts with existing pro-rata offers, and then with the proceeds of my lump sum retirement grant, offer F&F settlements. Whether this would have actually worked, I don't know, but unfortunately it got overtaken by events last year when my wife became ill and I took early retirement in order to look after her.

I think you're right to be wary of equity release schemes. I haven't looked into it myself in any detail, preferring to keep it as a sort of "bottom line" option. The thought that occurs to me however - and I haven't checked this out at all - is whether any sort of credit reference searching would be done? That in, my case at least, would put a king-size spanner in the works!

For the moment, I'm afraid that's all I can offer, and I'm suspect I've probably clouded the issue rather than solving it for you. Sorry!
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By Sammy
#67844 No Yogi I just wanted to test the waters by getting as many people's views that want to contribute
At the moment I am genuinely undecided, but my main concern is to protect the house and also car - I don't only need it to get to work I need it for work as well - whilst paying my creds as much as I can afford
However one of my creds is GE Money and simply put I just don't trust them.
It's the lump sum at the end of 3 or 4 years that I was querying - would the creds accept the fact that'll I'll be in possession of a not inconsiderable lump sum £24000) when I retire? instead of risking the house
I think really I'll need to speak to Payplan ( I'm in a DMP with them )but I wanted to take soundings here - I've learnt a lot on this site. I'm not expecting people to make my mind up for me just want to hear different views...
Thanks for your input....
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By Yogi Bear
#67854
Sammy wrote:At the moment I am genuinely undecided, but my main concern is to protect the house and also car - I don't only need it to get to work I need it for work as well - whilst paying my creds as much as I can afford
....


Me too. I was, and am, strongly motivated by the desire to protect my home and everything I've saved up for: I guess it's an 'Englishman's home is is his castle' sort of thing with me. That's why I don't want to go down the big B/IVA route, even though I'm sure it would probably make more sense financially.

I did use my lump sump from early retirement to pay off our mortgage early, on the basis that not having to fund a monthly mortgage payment would free up some income which could then be distributed amongst the creditors. I didn't specifically mention this - I just deleted the monthly mortgage payment figure from the revised I&E, and none of them appeared to notice it or comment on it in any way. Hmmm.
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By Sammy
#69181 Yogi - thanks for your input. I had to speak to Payplan today anyway so I queried this then. The advisor seemed to think that I'd have to put equity at the end of the arrangement, whilst on the other hand the fact that I had a lump sum sometime in the future could possibly enable me to offer F&F
A lot depends on how much I'll be able to pay off in the intervening years of course, so I've decided to leave things alone. I'm aware of equity release schemes but I'm very wary of them and to be honest - it wouldn't release much. So best to leave well alone I think