Hello my name is Will i am currently in an IVA with my partner Jessica and we are currently in our 3rd year in our IVA plan with Harrington Brooks. After a financial review last september we had both gotten better jobs and had an increase in salary. Due to this our monthly arrangement went up from the agreed £150 a month. To £258 a month due to Harrington Brooks saying we had more spare income and we had to provide some of this towards our debt. I would just like to find out if this makes the plan shorter than the 60 months as we are paying more and will our debts be paid off quicker? or what is the case with this. Any help or information i would be very grateful.
Higher payments only means you can contribute more to repaying the original debt.
It will only finish early if you pay enough to cover 100% of the debt plus fees and statutory interest.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
Lifenoteasy is totally right. However if you have had a payrise your IVA payments will only have increased by 50% of the additional surpluses so you should be a lot better off yourselves as well as improving the return to creditors.
Hi Will - I agree with both of the above. You're paying higher contributions because your disposable income increased. This means creditors get a better dividend than originally envisaged but doesn't mean the duration is shortened unless as Michael says everyone gets paid off in full as a result. The only way you may be able to shorten it if you can offer a F&F payment with 3rd monies from family and friends.
Thanks for you info guys, really helps. If we were to make a full and final payment with help from family, what would be the best way to rebuild our credit files?
Your credit files are badluy damaged until six years have passed from the start of the IVAs so no real need to worry about that. If you do propose a full and final which is accepted you could look at getting a Vanquis card or the like to start building up an improved score.
A full and final to end your IVA early may help in the future if you want to secure a mortgage as some lenders judge decisions on how long since IVA is concluded
