www.iva.co.uk

Just wondering if anyone has ever said about this before or done it. I am in an iva and alas have had to get payday loans because i simply dont have enough funds for costs. Has anyone on here done this?

Hi

I recently had an incorrect payslip/payment from work. They over paid me by £300 last month so this month I am £300 short of my normal wage! It was actually a blessing in disguise as my car tax is due and I haven't yet stored enough savings to cover the full cost so used the overpayment in wages for this and my dog'd vet bill, on the understanding I would pay it back to my employer the following month.

Quite how this will affect my annual review (next month) I don't know. Technically I got paid more than stated in my proposal but as I paid the money back the folowing month I suppose it levels out. I would think that if you are regularly having to get pay advances (like more than 3 times in 12 months) then you probably need to re-assess you I&E with your IP as the purpose of the IVA is to leave you with enough money to live on - not force you into more debt. You'll have to catch up on paying back the advances sooner or later...

Hi
I know that it is an expensive way to borrow but can also understand that sometimes life gets so tough in an IVA that it seems like you have no other option.
You would be better contacting your IP and asking them for a payment break whilst you get yourself straight.
Then have a good look at your income and expenditure with your IP
Regards

It seems to me as well, from reading other posts on here, that payday loans tend to become a viscous circle and you end up borrowing more and more.

You need to speak to your IP asap before you get in too deep.

Hi shazzles

If my mind serves me correctly then your iva is quite new[?]

If you are struggling i would make your first port of call your IP and see if they can help rather than the payday loans.
As Kallis said once people get these payday loans they seem to be in a circle and need them every month to get by,

I would hope you should recieve a sympathetic ear from your IP

good luck

hmmmm i know you all mean well but ive already had a two month payment break because of being off sick from work, i dont think i have any other option....ekk

Perhaps you need to ask if you can lower your payments? You might find your IP might be able to do it without having to call a variation. You'd need a new I&E if you do that though.

Are these actually allowed in an iva? I thought they would have been classed as credit.
I would speak to your ip and review your i&e as it's obviously not right somewhere. It's not supposed to be easy but you should have enough to live on.

Perhaps as you borrow against your next months wages and then pay as soon as you get paid, it's not the same as a loan or credit card?

Don't know for definite though.

What happens if for some reason you don't get paid the next month though? Wouldn't it still be a short term loan guaranteed against earnings?

Pixi is absolutely right - a payday loan is classed as credit and depending on the terms of your arrangement you should not be using it.

In any case Payday loans are a very expensive way of taking credit and you will find it very difficult to get back on top of things.

If you have had a two month payment break because you were off work sick and were not getting your full pay then that is a perfectly understandable and justifiable reason. I cannot see how you could be criticised.

You should speak to your IP as soon as possible and explain the situation to him or her. I cannot promise that they will not be disappointed or even a bit angry but what's done is done. The most important thing is to get you back on track with your IVA.

Depending on the terms of your arrangement your IP may need to go back to the creditors and explain to them what has happened and ask them to ratify the loan (i.e. to agree to it after the fact). You will probably need a bit of space to sort yourself out and get the payday loan repaid.

You should not have to borrow to make ends meet - if you have to, your IVA will never succeed. If you are not able to manage on the budget you have, you need to ask your IP if he can return to the creditors and ask them to agree to reduced payments.

Please do not be worried about telling your IP you are struggling, they are there to help you get through the five years of the IVA. If you are scared to talk to him or her, they can't help you when things go wrong. I am not saying that your IP can help every time but he or she will do their best.

AS Elizabeth has rightly pointed out, this is a minor offence in the big sheme of things, which is likely to be dealt with in a quick chat with your IP, but it may be masking a much bigger problem - that your IVA payments are set at an unrealistic level.

It is probably a good idea to now have a thorough interim review with the IP personally - ideally try and arrange a face to face meeting, so that they can see that you are sorry about what has happened, but are serious about putting things right both for now and for the future of the IVA.