Salary Increase and change to Monthly Payments

[Helping Hand]

Morning guys - hope you are doing well. A question mainly for IP's but in your experience does a pay increase of £100 lead to much of an increase in your monthly payment? My annual review has just been completed on my old salary level with no monthly contribution increase, so assume this will now go up. Grant Thornton have said that it will be at least 2 weeks for them to carry out the salary review (things are somewhat busy there at the moment).

[herbekj]

From my personal experience I have not had my payments increased at either of my annual reviews even though I had received quite substantial pay rises circa 8%-10%. From the income and expenditure form I added a little bit here and there (food/car/petrol etc) to pump the outgoings up but this still left an increase that I indicated I could pay. When I received the yearly IPs report they had increased some of the items more than I had and that there was not to be an increase in my payments. Got to say I wasn't complaining.

Third review shortly and will do the same, enter honest and valid figures (that also mean I can still have bit of a life) and if it shows that I can pay more again well that's what's supposed to happen, the IP can then decide.

[liamjames]

Hi Nahdia!

It completely depends on the wording of your proposal and your creditor modifications, as well as any increases to certain parts of your expenditure since you started the IVA.

I wouldn't be concerned, but make sure that your IP is informed of any changes to your situation (including any increases to expenditure), as this may also affect the review. As long as all his information is up to date, you can be confident that any increase to your contribution will be fair and affordable.

[Helping Hand]

They have just completed my annual review so they have my latest expenditure information, but as I haven't received the annual report yet to see what they finally calculated as my monthly surplus income, I guess I don't know whether this was above or below my current monthly payment.

Nahdia

[Declan at DebtFreeDirect]

Hi Nahdia
From experience I don't thin it will make a huge difference. It will obviously be taken into consideration during your review.

Thanks

[Helping Hand]

Thank you Declan. Just to clarify, do you mean for my next review? As I just had my review for this year. This salary increase came in effect at the end of June 2009 and my income and expenditure information had already been submitted for this years review. So in effect they are just being made aware of the salary increase now, not the best timing but rather than wait until next years review I thought it would be wise to notify them now.

Hope this makes sense!

Nahdia

[MelanieGiles]

This does depend entirely upon the terms of your specific agreement, and also whether you have increased expenditure to set off against the pay-rise. Let GT do their review and advise you, as they have detailed knowledge of your case and we do not.

[Declan at DebtFreeDirect]

Hi Nahdia.
I miss read you previous post - sorry bout that, I think I need to go to specsavers!
Yes you are correct, its best to inform your supervisor now so they are made fully aware of it.
Thanks

[Helping Hand]

Thank you Melanie, of course, I see the point you are making - that we all have different terms on salary increase, windfalls and bonuses and GT will know what is the case with me. With regards to expenditure, no increase to be accounted for.

Although the extra money would be great[:)] - I had not accounted to have it due to the economic climate, so if it leads to an increase in monthly payments then so be it.

Thank you

Nahdia

[kallis3]

So far neither myself nor hubby have had any increase in our payments, despite a payrise for myself and a pension rise for hubby.

I have another payrise due shortly, so we will see what happens then.

It really all does come down to how your IP deals with it, and how much your cost of living has gone up.