getting debt paid off quicker ?

[tozer007]

I have 15,000k worth of debt i have been quoated to pay back £110 each month for 5 years is there a way to get this debt paid off quicker? so i dont have to wait 5 years! i also have about £3000 spare which i can put towards my debt if it will be paid off quickly

[rayb]

Hi and Welcome,

The monthly payment you have been quoted is this for an IVA or a DMP as the payment seems very low.

The only way you would pay it off quicker is if you could offer a full and final payment (£3000 would not be enough) or increase your payments so that you pay off the debt in full or near enough.

Please bear in mind that your credit rating is shot to pieces for 6 years from the start of the IVA so even if you clear it sooner it will make little difference

[David Mond]

Is this by way of DMP or an IVA?

In any event can you afford more than £110 per month.

Need more facts about your disposable income and all of your assets to give appropriate advice.

[liberta]

Tozer007, I would presume that as £110 over 5 years would not repay the £15,000 in full, you are talking about an IVA. Funnily enough the amount you have been quoted would make a 25pence in the £ dividend, which is tends to be a general bench mark for what the creditors will and won't accept in an IVA.

I would be very hesitant about entering into an IVA with an firm who quoted you the amount to pay back. What you pay back should be based on what you can afford. The advice and solution should fit your circumstances and not the other way around.

I would suggest that you contact another firm for advice on your particular circumstances.

Depending on what you are really able to afford, it might be possible for a third party such as a parent or sibling to make an offer in full and final settlement rather than you making payments for 5 years. I have even had an IVA where the individual's employer offered the money.

In any event, the £3,000 you talk about should be offered into the IVA as an asset.

[MelanieGiles]

I don't see that 25p in the £ benchmark being operated any longer, but of course can only speak from personal experience.

I cannot believe that there is an IP out there who would put forward an IVA based upon payments of £110 per month - but perhaps I am wrong!

If you have such a low disposable income, and few assets apart from the £3,000 you have already referred to, I would also consider bankruptcy proceedings, given that you are looking for the most speedy way of dealing with your debts.

[David Mond]

Melanie we do offer and have had in certain situations agreed IVA's with dividends as low as 8p in the £ (one only though) but quite a few over the years offering between 17p and 25p in the £. It all depends on the circumstances. This poster tozer007 would like to pay it back faster than 5 years. We all need substancial more information to be able to give appropriate advice.

[MelanieGiles]

My lowest dividend ever was 6p in the £ for an IVA - but of course exceptional circumstances.

My personal lower limit is usually 20p in the £, as below this it can be difficult to argue the benefits to creditors compared to the costs - but as in your firm we view every case individiaully and rarely manage to not find a suitable solution.

It has been a long while since I have been faced with the 25p barrier Elizabeth referred to, but maybe that is because we immediately changed over to Protocol arrangements in February for the majority of our cases.

[David Mond]

The Protocol implies that any dividend is acceptable if all things have been adheard to Protocol wise and that this is the best offer. Creditors are slowly comming round to this fact - slowly though!

[MelanieGiles]

Ever the optimist David!!!

[David Mond]

That is why I am what I am!!!!!