I am looking at settling my IVA in full because my kind boyfriend is willing to help me out. My situation is as follows: total debt is GBP26,841 monthly contributions is @ GBP510
total contribution is @GBP30,600
cost of the IVA @GBP10,288 includes:
nominee's fee @GBP2,500
supervisor's fee @GBP6,000
disbursments @GBP300
irrecoverable VAT @GBP 1,488
Feb 09 is my 22nd month, can you please advise how much I should propose for my F&F? Many thanks in advance.[:)]
The best thing to do is to take the amount you have paid so far and minus it from what you would have paid over the 5 year period minus the remaining 3 Years IP Fees.
Alternatively you could ring your IP to ask for an amount as you have to sometimes get as close to the original dividend you would of paid over the 5 Years.
Is there a genuine reason for wanting to end early such as moving in together, affordability etc. This is something they would like to know
To achieve the same dividend of 76p in the £ would require about £16,000. This figure assumes the supervisory fee will be waived for the final three years and a variation fee of about £1,000 plus VAT is charged. If you go past the 24th month and into the third year another £1200 plus VAT becomes payable and the figures would need adjusting accordingly.
Creditors may accept a lower amount in return for having their money earlier but as Ray says you should provide your IP with a reason for the early settlement. In addition to what is suggested there could be uncertainty of employment or you could be considering starting a family.
As the FF settlement is paid in a lump sum, this might make one debt free in an instant but getting credit will still be a problem for the unforseeable future,the 'iva tag' is still with you and I don't mean the 6 year credit reference entry in the credit file....but rather that creditors had written off debt as they didn't get 100% back.
FF are fine but it isn't an instant fix to be credit worthy again to go buy a house. As long as people know this or and is doing a FF for other reasons then pay the FF lump sum!
I agree Skippy. I think that people just want to pay off their IVA's so that it is out of the way, and isn't hanging round your neck for 5 years.
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
Is it not the case, Kalla, that most people who complete an IVA, by whatever means, don't want to touch credit again with a bargepole?
Mortgages, of course, are a different kettle of fish but my own opinion, for what it is worth, is that saving for a sizeable deposit to put down first has to be better than jumping feet first in to what is currently a very volatile market.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
size5 wrote:
Is it not the case, Kalla, that most people who complete an IVA, by whatever means, don't want to touch credit again with a bargepole?
Mortgages, of course, are a different kettle of fish but my own opinion, for what it is worth, is that saving for a sizeable deposit to put down first has to be better than jumping feet first in to what is currently a very volatile market.
Regards.
Hi,
I totally agree with size 5. We would love to end all our debt problems asap and would like to think that we could never get our hands on credit of any kind again. It's credit that got us into this mess. We have had to learn that if you can't afford it you just can't have it.
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
I am proposing a lump sum IVA (creditors meeting on Monday), and the very last thing on my mind is applying for credit again - ever!! I never want to see a credit card again in my life. A mortgage is differnt, but thats some way down the line when I manage to pay my parents back the money that are lending me for the F&F first of all, and then save for a deposit. By the time all that happens, I will be looking at retirement flats I reckon!![:D]
