To those that replied to my initial post. You are right I should have read carefully the full detail of my IVA. After seeing the magical figure of 45% of my debt to be written off I was under the false impression I would not be asked to pay more and after reaching this I would be debt free.
Also I did not expect to receive a letter from the bank in the first instance informing me of a successful claim and an award of over £5,000 to see it go back to the banks via a third party (my IP). This letter was received just 1 week before my final payment. As you all know an IVA still is in force for 3-6 months after the final payment is processed so this sum of £5,000 was never mine. Both bank and IP are aware of its existence. At least I can sleep at night now.
Good luck to those who are still paying an IVA I hope you have a better experience than I did. Final Post.
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 have been reading this with a bit of interest over the last couple of days.
I received my PPI refund from Barclays (one of my creditors) by cheque and I paid it to my IP once cleared. The PPI related to a secure loan I had with them rather than the overdraft and Credit Card with Barclaycard.
This was written into my IVA when it was set up and I have also informed my IP I will be receiving a life insurance payout in a couple of years time (still in IVA) which I will pay to them.
These amount were going to be planned to be spent on replacing my car and motorbike and the insurance one for a holiday for my 50th birthday.
Do I regret having to pay these amounts over? ...... well only in the fact I got into this mess in the first place by using loans and credit cards to finance a lifestyle that can come crashing down by a change in cirmcumstances.
I went the IVA route to ensure my creditors got back as much as I could afford to pay them whereas they would have not got anything going BR.
Normally I'd say that paying back as much as possible is the main thing but in some circumstances, for some people, the PPI (usually forced on you) was pretty much the straw that broke the camel's back.
You can argue that no one forced you to borrow the money, but in a way they did, saying "you can't have the loan without PPI", this definitely happened to me.
Personally, if the PPI was the thing that pushed it all over the edge (it wasn't for me) I'd definitely feel aggrieved at having to pay a PPI refund into the IVA.
I've no problem with paying an increased dividend, or even declaring windfalls (if they had happened) but to have to pay PPI back when mis-sold PPI had tipped me over the edge...... I'd be pretty ..er.. annoyed
Last edited by animaleyes76 on Wed Sep 07, 2011 9:55 am, edited 1 time in total.
Hi, this is in reply to animaleyes76. At last someone on this forum who feels sympathetic to what happened to me. Its refreshing, everyone on this forum (it would seem) are blaming themselves and not looking at all the circumstances regarding their personal debt problems. Its true some people are irresponsible with money. I tried not to be. In the end it was interest rates that inflicted the most damage on me not my over spending. I am still in a poor financial position today even though I have paid my IVA. The cost of living as shot up but my salary over 4 years as increased by just 2%. Think it about it. Every time you put on the TV something else as increased in price
and I have had to find the money somehow to make all the ends meet. If not you are financially punished by the banks who demand their share.
The windfall PPI would have helped me completely. Alas its not to be. I don't want to go to prison for a possible fraud and to fail my IVA. My IVA is in the housekeeping phase of 3 months until they issue the certificate. Even though I made the claim with bank regarding the PPI over a year ago it has taken a year for a compensation claim to come through only for it to be forwarded back to the banks via my IP. Ironic or what. Anyway I am pretty annoyed. I face the next few months of trying to juggle my finances until everything sorts its self out. This should be by January or February next year. I wish it were sooner. Thanks for your kind words and I know exactly how you feel regarding PPI refunds and who finally benefits from them. For me its been a journey I'd sooner forget.
It’s a journey that I would prefer to forget too Daytona, but I still find myself scrolling through the pages of iva.co.uk every day and reading most of the Q & A that are posted daily, and there is no reason why you shouldn’t chip in yourself occasionally as people going through the IVA process may be interested to read of your experiences and opinions. You may think otherwise, but most people on this forum do sympathise with you, but we all know ultimately that getting into debt is usually our own fault – even though the Banks can rightly be blamed for pouring petrol on the fire of peoples’ debt and getting away with it. I don’t think that anybody on this forum will make the same mistakes again though, as going through an IVA is a sobering lesson in managing ones’ finances, and although I didn’t think so at first, an IVA was the best course of action to tackle my debt – and on reflection, you may come around to thinking it was the best option for you too Daytona.
Last edited by PELDER on Wed Sep 07, 2011 11:16 am, edited 1 time in total.
I know mine is certainly the best thing I've done to tackle my debt, which was all my own doing. I can't blame PPI as I never had any and was never told that I couldn't have a loan if I didn't take it out.
Even I had taken it out, I wouldn't mind paying any claim back as my creditors have written off all charges and interest and I would be happy for them to get a higher dividend back.
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
My IVA is the best thing I could have done in the circumstances ( well, technically, probably BR), but is the worst thing I would do completely voluntarily (if that were possible.)
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Foggy that is was my sentiments exactly. I did not want to sign up to an IVA it was my circumstances. I started mine in October 2006 and my last payment was August 30th this year. I have paid back 100% of my debt plus £600 by my calculations. A figure I am sure I will never see from my IP. My creditors and the IP will have swallowed it or hidden it in expenses. Still like many have said to me on this forum, for me its over. I look forward to (hopefully) a better financial year in 2012. Good luck with yours.
I understand what people are saying - that we borrowed the money in the first place - which is all true.
My only gripe is that once I had lost my job and my credit rating dropped, the credit card companies I had been using for years suddenly increased my apr from 5% to 30% - and higher than that on some. To me this is the straw that broke the camels back!! It's like they wanted to see me fall.
Why do the banks give you a low apr rate when you can afford it, and then the minute you hit a difficulty make it practically impossible? It is their greed on interest rates that causes a lot of problems.
Hi Tamiami, I understand totally where your coming from I've been down that road before. I was paying £35.00 each on four credit cards a few years ago, then all of a sudden the higher interest rates were applied. I started to receive credit card demands for much higher payments. It went up to something silly like £175.00 demanded on one card for the month.
I had to do something about it, so I entered an IVA. The banks know the game and its very simple. They will offer you low interest rates to snare you in and then hit you with higher interest rates on the money you borrow. Its a slightly simplistic answer but in general this is what happens.
The more people in debt to the banks through loans, mortgages, credit cards, the more money they make in the accumulated interest. For one or two people its not going to make them wealthy. However if millions owe them interest on the borrowing you can see where they get their billions in profit margins. The PPI claims disaster did give the banks a b***** nose and you've seen how big that is by turning on the TV, but generally the banks always win. I should know I am living proof. All the best to you.
Yes, the normal monthly payment is then trebled due to the account balance rapidly increasing because of the new rate of interest being thrown onto the account. Subsequently you can no longer afford the minimum payment, so they stick on a £35 charge on each month for not paying the minimum payment. A credit card that had been managed beautifully for years is suddenly out of control - but not not through an extra penny being spent using the card - just through interest and charges!!
That's exactly why I had to enter an IVA. I am still feeling the effects of debt even today. I just hope and pray I get the certificate soon that states that I have successfully completed the IVA. I'm currently completed the payments and in the IPs housekeeping phase. Thats all I am concerned about. You would think that after paying 100% back to my creditors they will be satisfied. All the best to you Tamiami, you're not alone, thats for sure.
