Increase in payments

[caraf]

Hi.
I have not been on for a couple of weeks I have now read through the threads are now up to date.
One of the common things arising again and that worries me alot is the increase in iva payments. What reasons do IPs increase payments for ??? do they have to give a reason. Why do they do it.

Our curcumstances propably wont change much over the 5 years, maybe my husband will get his 2.5% increase each year but thats all, and I have already been told we can keep that. So surely our payments shouldnt increase. should they ??

[Adam Davies]

Hi
Payments only increases in an IVA if your income increases faster than your expenditure increases or if your expenditure decreases then your payments will increase.
Your 2.5% increase each year should be gobbled up by expenditure increases leaving your payments the same
Regards

[louisa.s]

if it is of any help our payemtns did not increase when we had our 1st review. We have voluntarily increased them as of Feb as Hubby had a sustantial payrise in Jan and I'm hoping that when we have our next review it shouldn't increase much past what we are paying now taking into account council tax rises etc.

[OPTIMIST12]

I would just like to follow on from louisa.s - I had a significant (but not huge) payrise when I was about 6 months into my IVA - and as a result my monthly payment jumped up quite a bit after I told my IVA Company ( absolutely no complaints - that is the whole ethos of an IVA - to pay the most back that you can). I am hoping though that I wont get another increase at my annual review this month - time will tell!!!