I think that you have completely misunderstood the nature of an IVA Alastair. The spirit of entering into such arrangement is that you pay back as much as you can to your creditors over an agreed timescale. Surely that was your absolute intent when you borrowed the money in the first place - when you also knew you would be paying back more than you borrowed in terms of bank interest. I am struggling to understand why you feel so resentful of your own decision?
MelanieGiles wrote:
I think that you have completely misunderstood the nature of an IVA Alastair. The spirit of entering into such arrangement is that you pay back as much as you can to your creditors over an agreed timescale. Surely that was your absolute intent when you borrowed the money in the first place - when you also knew you would be paying back more than you borrowed in terms of bank interest. I am struggling to understand why you feel so resentful of your own decision?
I am aware that the idea can be to pay back my creditors back what i owed them. However when the iva was set up and my payment plans were set out, surely with the amount of debt I had was not dealt with correctly as to payback more than the initial debt ( including interest on some ) would mean I would of surely been better not to enter this iva? Also it wouldn't of have effected my credit rating so dramatically as it has done. I know an iva is of great benefit to many individuals but I am in my case feeling a little bit sceptical on my iva.
Well the IP is not going to do the work for nothing! So if you have paid more back than you originally owed it is probably due to costs. In hindsight you may well be feeling that you made a bad decision, but if I were you I would concentrate on the benefits that you have had over the last few years - protection from creditors and no interest being charged on the debts at an average of probably around 15% per annum.
A lot of people enter IVAs paying their creditors back in full - which of course is the intent when the loans are actually taken out in the first place.
Not sure how you work out you would have been better off not entering into the IVA, unless you are thinking that bankruptcy would have been a quicker way out for you. Perhaps this is so, but personally I think you have done the right thing by the people who loaned you the money and you ought to be feeling proud and not disgruntled.
Your credit rating would be equally effected in either an IVA or bankruptcy, and very possibly under a DMP as well - where you would also have incurred charges and had to repay your debts in full - unless you chose one of the "charity" based companies to represent you.
I completely agree with the points you have made, but think that the advertising of IVA's gives the wrong impression and often focuses on the debt write off aspect as the headline message.
In fact, if you look at this website, the message at the top of most pages has the following text:
Do you qualify
for an IVA?
Write off up to 70%
Ave write off 45%
I know that you are not responsible this forum, but just wondered whether this may give the wrong initial message.
I think the relevant points here are 'write of up to 70% of your debts off'.
Does not mean that you will be able to write off that amount of debt.
Each case is individual.
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 understand what you are saying. It was just a general point that any advertising you see for IVA's is often about debt write off and there is so much more to an IVA than that. In my case it is peace of mind and feeling that I am paying back as much as I can.
I guess the point I was making is that even this website re-enforces the initial message of debt write off with the text at the top. Clearly if individuals still believe that it is all about paying as a little back as possible, even when they are part way through an IVA, then they will have missed the point of IVA's.
I hadn't noticed that Paradise but now have seen what you're referring to and that is how it's marketed so I guess is why peopele assume they're going to have x amount of debt written off. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
lesley_ wrote:
I hadn't noticed that Paradise but now have seen what you're referring to and that is how it's marketed so I guess is why peopele assume they're going to have x amount of debt written off. x
So I guess from this then that it is correct and I am to pay off all my debts back! This is fine but does it give me any added bonuses? As in a better credit rating or something similar? What happens when my iva finishes does my credit rating improve or does it stay rock bottom? I would be pleased that I was able tom pay what my total of original debts were, however the iva's are not very clear on this when taking them up. All clever marketing. My total for the setting up of the iva was £4400! Is this about normal?
Sorry but I don't agree. The forum is perfectly entitled to say that debts can be written off, and they quote an average write off of 45% - which is actually incorrect in that this is more like 70%.
The problem to me is with those who interpret the benefit of debt write off to seek as much as possible, rather than realising that they have to pay as much as their own circumstances dictate they can afford.
I know that our write off won't be that high, but I know I am paying back as much as I can. I'm happy with that, but do wish I could afford to pay them back in full.
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
