www.iva.co.uk

I am four years into a five year IVA with GT. Given the changes in pension rules can I use pension funds to offer a F & F ? I am over 55 so I can access my pension pot. I pay £235 pcm and have 12 months( plus the usual 12 months equity release or not) left to run. Any advice appreciated. thanks

First take independent financial advice regarding pension release. Apparently the new rules are not as simple as first portrayed. Then remember that any draw down will affect your pension for the rest of your life, whereas the IVA will be gone ( in terms of repayments) within a couple ( maybe just one) years.

I would hazard that, with equity to look at, a F&F will take the best part of 6 months to sort out and, if no equity or extension you would already be almost there !

I agree with Foggy that this may be short-termist and could impact on your income in retirement. However it is an option and if you decide to go down this route ensure that no funds are drawn down until the full and final settlement has been agreed.

Hi Andy

We did exactly this after taking advice, but we still had 3 years to run with equity clause which would have meant another 12 months, can honestly say it was a relief but apart from not having to account to somebody else about what we spend there is not a lot of benefit from finishing early, your credit rating will still be shot to pieces, you will not be able to negotiate new mortgage or existing mortgage deal. The main benefit we have seen is that we are saving IVA payment and its nice for the first time in 20 odd years that we have a savings account and can watch it grow ready to pay for any emergency and to treat ourselves to a holiday next year.

Good luck with whatever your decide, but think carefully if it will be worth it for 12 months or 24 if you have enough equity. Also it might mean you pay more back if the pension amount you can release if higher than the remaining payments you have to make.