www.iva.co.uk

When looking at an IVA that includes a personal loan, there are possibly at least 3 ways to consider the debt amount.....

(1) current amount outstanding

(2) figure given to pay up loan in full there and then [usually less than (1) as the loan company has to defer some interest I understand

(3) number of payments outstanding x repayment per month [this would be the highest of these methods

Which one is the 'recommended' method?

rickyg

To work out how much you owe you need to deduct the payments made from the overall amount payable. It is always what is currently outstanding and not a redemption figure.

My advisor has asked for number of payments still outstanding x amount to be paid per month.

This is the bigger of the three methods I'd suggested above.

Surely there's a 'standard' agreed method for this?

forgot to add........

If the same rule were applied to credit cards, it would be minimum payment per month x number of minimum payments required to clear the debt. The total would be enormous.

Various companies calculate account balances in different ways. Please don't assume that the creditor will merely deduct the payments made from the amount borrowed. The safest thinkg is to get a written redemption statement from the creditor concerned.