www.iva.co.uk

I am in an IVA which is due to end next year.I was struggling to make ends meet and didn't want to ask for a variation to my IVA payments asI don't want to extend it. I took out two payday loans but now cannot afford the repayments and am frightened my IVA will fail. What should I do? I want to pay the money back but maybe through a repayment plan with the interest frozen. I'm really worried

How much did you lend? some ip's allow credit of up to £500 under as tight agreement.

Really you need to speak with your IP as it could potentially be a breach of your IVA proposal

As they do the amount I owe has escalated as I needed to borrow more to pay the interest. I now owe £1700

You really need to speak with your IP about this, i know its not what you want to hear or do but im afraid its the only way to solve this problem.

Which company are you with?

Arty

I'm with debt free direct who have always been brilliant

I think you'll have to speak to both parties. I have seen posts on here where payday loans will freeze the interest and work out a payment plan.

I can't think of why any IP would want any IVA to fail it's how they put bread on their table.

If you can't make ends meet go through your I&E with your IP. I think under the latest protocols they can reduce your amount by up to 15% or up to a six month break at the supervisors discretion, not sure about earlier ones but most IP are flexible first time round but wouldn't fancy your chances if you did it again

Ohhh the five S's may help here. Sound sorry, say sorry and be sorry.

How many IVA payments would clear it, if you see what I mean?

Thank you, I can't believe I've got into this mess and truly want to sort it out. It would be 4-5 months iva payments to cover it

Sorry to hear that. Things must be pretty bad as you have had to even consider pay day loans. I had borrowed money from friends when I was struggling. IVA was frozen while I was being treated for cancer. Mortgage company hounding me to pay etc.... When I could afford to pay they charged me £100 per month plus arrears.

That was 2yrs ago. Only 2days ago I found this great forum

Hi and welcome.

Firstly, i suggest you speak to DFD to tell them what you have done and be guided by what they say.

Do you have any family or friends that can help you out here?

I agree with Niobe do talk direct to your IP as they're best placed to offer case specific advice. x

You really do need to make that call. It is probably worth going through your income and expenditure to see if you can highlight why you had to go to the last resort of a PayDay loan. It seems there may well be a bigger picture here that needs to be addressed.

Hopefully DFD will be able to help you - let us know how you get on.

Thank you so much, will keep you posted x

Hi, I am an IP and there is some very sensible advice on here. You do need to speak to your IP as this may be a breach of the terms. Tell them you were in difficulty and as advised be sorry. Come clean as soon as you can and they may be able to use a certain amount of discretion. As advised, no IP wants to see a consumer debtor protocol compliant IVA, for a number of reasons. We have to report all failed VAs on our annual returns to our governing bodies. Speak to the IP and explain what happened. It may be that a variation will be necessary so you may reduce the payments into the VA to cover the payments to the pay day loans. The pay day loans will not be covered by the VA. Hope this helps. Sam

Fingers crossed you get this sorted Nicole.