confused.com!

[rockstarloz]

I am slightly confused. Due to getting a bit more on a monthly basis my IVA payments have increased. All well and good but I owe just over 21k and my payments £433 a month. Now if my maths is correct, I will end up paying more than I owe I think, around 25k. Is this right?

[Viki.W]

Hey rockstarloz. Is that the original amount of debt before the IVA? Also don't forget IP fees. Good for you that you're able to pay back more. X

[rockstarloz]

well the original payments were 333 a month so including the fees I would pay back around 19,000. I do get pay rises annually so does this mean I may be able to pay off the IVA early, say in the 3rd year`? That would be great!

[Viki.W]

If you can pay back your original debt ie 100p in the £1 plus interest plus fees early, then yes, your IVA can conclude. What was the exact amount of your debt BEFORE your IVA and how many pence in the pound are you paying back?

[rockstarloz]

my debt was 21k and I was paying 58p in the £. This will have gone up due to bigger higher monthly payments now. So will I have to pay the full 21k in full for it to conclude or what was agreed, i.e 19,000 minus fees?

[Viki.W]

For it to conclude early then you would need to pay the full £21k plus IP fees and probably stat interest at 8%.

If you have a wage increase, don't forget about all the increases in you outgoings. Don't leave yourself short. If you pay it off earlier then brilliant, but don't struggle. X