Everything rising in cost leaves us £100 short on our IVA payment

[Dee.95]

Due to everything rising in cost and no wage increase the reviw I have just done leaves us just over £100 short of our IVA payment. i have asked the IP whether the payment can be decreased and they say the term would then rise to 6 yrs, how unfair is that?

[Foggy]

Normally the IP can only sanction a reduction of up to 15% without having to ask the creditors for permission.

It's not really unfair, I am afraid it's business. The creditors loaned you the money and want to see as much as possible back. I would imagine, even after 6 years they will be wrting off a fair chunk ( even without all the interest you are saving in the meantime ), so you will still be ahead of the game at the end ... and debt free

As an example .. I owed one CC company nearly £13,000 and was just paying the interest each month. Assuming I wasn't in an IVA, after 5 years I would have paid that company over £12,000 and STILL owe them the £13,000 !!!!! In the IVA they are getting about £4000. So I have "saved myself £21,000 !!! And that's just one creditor!

First time I have actually worked that out -- puts things in perspective !!!!

[Dee.95]

I know that's business but when you're over half way through and the choice is move the finish line or really really struggle and gradually have less and less (not much in first place) it sticks. Don't get me wrong I know this is our own fault - no sympathy wanted - but pay and pay and pay again for mistakes doesn't even cover it!

[kazzafunk]

Hi Dee - is there a clause in your proposal / chairmans report about the IP being able to reduce by 15%? Would that help at all? I agree things are rising very fast. However, I just keep reminding myself that I wouldn't have been able to live at all with all the debts we had and prices rising so this is the better option.

To be honest with you if we struggle in the next few years (I may have to reduce hours again in the future due to health issues) then I will jump at the chance of lowering payments and extending by 12 months as it will still all be over long before my debts would have been paid if I hadn't entered an IVA!

[Foggy]

I see what you are getting at -- and yes it IS annoying but, say you are halfway through and you are asking for a reduction of £100 per month... they would be "knocking off" £3000 and asking for a years extra payments in return, at the new rate. Do you currently pay more than £350 per month ?

[kallis3]

Unfortunately I think you will have to go with the extended period but at least you know your debts will be over at the end of it.

[Dee.95]

we currently pay £354pcm and it would be nice to pay a bit less. Obviously we're feeling it more because of the economic climate, what was spare 3yrs ago certainly isn't now - my husband has to work overtime just to keep going, if that drys up too we really are in trouble. we keep trying to reduce outgoings but life is getting duller and duller! On the bright side it could be worse - I suppose!

[Foggy]

... so the extra year offsets the reduction -- a longer term, but slightly ( slightly) better payments. In effect not costing you anything more. Once that is agreed ( if you go for it) I would still ask if your IP would sanction a 10 - 15% reduction, which he should be allowed to do off his own back, without adding to the term. Check your proposal, it should be written in there.

On the bright side .. it could be a LOT worse, looking at my little calculation above ... 12 grand over 5 years and still be at square one !!!! Sheeesh!

[Dee.95]

It would be a lot worse if we didn't have the IVA. We are loathe to extend but as it has been noted it would be at a lower rate. At least we both still have jobs

[Foggy]

True --and you are nearly on the downward slope. It is still worth gently trying to push for that 15% if it's in your proposal --- after all this is a negotiation.

[baldy]

I like your credit card example Foggy, would you class that as fair or would you class it as day light robbery by them? Im not going to except you have a choise because a lot of us probley used our cards to live off at some point.

Maybe its time the goverment looked at all companys lending money and the amount of intrest they all charge.Its usually the people who are less well off who borrow at these very high rates that will struggle in the long run.

Dee 95: I would push for the 15% reduction at least,really lay it on the line to them that you seriously need some help with your payments, have you made sure your I&E are well up to date and every single penny you spend is on there? Keep your chin up you have not got too far to go and then you can chill out not knowing you have to deal with them ever again!!!
Regard
Baldy

[Struzzo39]

I really feel for you. I'd be gutted if our goal posts were moved. Stay strong, you've come this far. Good luck for the rest of the way

[Foggy]

Hi Baldy ... I would class my example as daylight robbery. I was my credit card from that well known set of initials starting with an M and ending with an A ( and an N and a B in the middle). To be fair, they were my highest interest charge, but that example alone pays for the IVA.

[kazzafunk]

Foggy - can you give us another clue?!! ha ha. MBNA were one of my largest creditors and they didn't vote at my IVA. Aparantly they don't bother much which makes me think they make so much from creditors they don't really mind what they get back from those that fall by the wayside.

[Foggy]

Awww Kazza ... you've given it away