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By Super8
I am currently in a DMP paying about £150 a month. However over the last year or so I have also taken out additional loans from a lender called Provident. I now owe them almost £2000 and have to pay back about £60 a week. This debt is on top of the £15,000 I already owe. I am a home owner and we have anout £30k of equity but there is no way I can release this. Is there anything I can do?
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By Geraldine
Hello Super8 and welcome to the forum.

Try not to be too hard on yourself about having borrowed the extra money. I think this is happening more and more often.... One of the first things you can consider is adding your Provident loan to your debt management plan. This is definitely possible - have you spoken to your debt management company about this?

Alternatively, you might be able to consider an IVA (https://www.beatmydebt.com/iva/index.htm). I understand that the equity in your property is more than your debt. However, if the the property in joint names with anyone else? That would effectively half the equity. If you own the house alone, you may still find that the forced sale equity in your property is actually less than your prediction and the return to your creditors would still be better than bankruptcy and thus allowing an IVA.

I think it would be well worth your while speaking to a debt expert about this.
The use of payday loans and doorstop lending by persons who are in a debt management plan, IVA or protected trust deed is definitely on the increase and is causing a lot of problems and heartache.

If you wish to carry on with the debt management plan your DMP provider should show willing in assisting you to add this new debt to the plan. If they're unhelpful plenty of other debt management plan providers will assist you and some will be prepared to waive their initial fees given that most of your accounts are already covered by a current DMP.
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By James Falla
Hello Super8

I agree with Phil and Geraldine that there should be no reason why you should not add the new provident loans to your debt management plan. As Phil says, if your current DMP company is unwilling to help, then there are others who will happily take over the management of your plan on your behalf.

ncluding the Provident loan you now owe c£17k. I understand that you believe the equity in your property is c£30k. However despite this there could be every possibility that you could carry out an IVA. This would mean making similar monthly payments of £150 a month for 5 years and then agreeing to release equity at the end. However, if it turns out that equity release is not possible then this could be ignored your IVA would simply be extended for a further 12 months.
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By Steve Jackson
Hi Super8

Has your current debt management company been successful in getting interest and charges frozen on your origional debts? If so they are doing a good job and it would be sensible to speak to them about including your provident debts. If on the other hand your balances are continuing to creep up then it is probably a good idea to consider the IVA option.

Another thing to think about, why did you feel the need to take out the provident loans over the past year? Is this because your DMP payment of £150 a month is too tight? If so it does put a different slant on things and you first need to reassess what you can truely afford to pay each month.
By Super8
Hello everyone

I am with the CCCS and I am worried that if I tell them that I have borrowed more they will say that I have broken my DMP agreement and refuse to deal with me any more. I have heard that this has happened to other people who are with the CCCS.

The overall problem is that can really only afford to pay £150 a month (even without the provident loan payments) so it is going to take me over 10 years to repay my debt with the DMP so I am interested in the IVA. However I was originally told that this is not an option because of my equity. How likely is it that an IVA would be accepted given my circumstances?
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By Hayden
Hi Super8

As far as I am aware, your concerns about the CCCS are real. I have also heard that they will take a very dim view if you borrow more while you are in a DMP with them and probably tell you that they can no longer help you. I do not think that this is particularly helpful but it seems to be their wany of dealing with the situation.

In terms of considering an IVA, you mentioned that you feel the equity in your property is c£30k. How realistic is this do you think? I have been hearing recently that creditors are acception IVAs even where the equity in a property is considerably more than the unsecured debt because it is just unrealistic that this would be available even if you declared yourself bankrupt.
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By Geraldine
Hi Super8. Have you spoken to the CCCS to see if they will take your additional provident loans? If they will not help then I think the next step is to get a local estate agent to do a quick sale valuation of your property. As Hayden says, it is likely that the equity may be less than you think making an IVA feasible.
By Super8
Hi, I think the valuation I have is pretty accurate as I got it off the internet and the same house sold down the road last month so I would not have thought prices have changed much in a month. However, I have been doing a bit more digging and the house is in joint names with my partner but the debts are just in my name which I believe will make a difference. Is this correct?
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By James Falla
Hi Super8,

If your house is jointly owned, then your share of the equity is only £15k. Given your debts are £17k then you would qualify for an IVA strange that this was not picked up previously...) However, before going down the IVA route you need to think carefully about whether you can really sustain a monthly payment of £150. This is pretty much the lowest payment you can make in terms of an IVA so if down the line you start to struggle, your IVA may be at risk of failing and you could face bankruptcy. For this reason you must talk things through with an expert before making any changes.