I believe myself to be in a fortunate situation where I might be able to pay the full sum of my debts via IVA payments due to a pay rise.
Here's a breakdown of my situation.
I've been on an IVA for 2 years, and i've been paying £129 a month. I took a payment break a couple of times due to unexpected bills like Car Repairs, and as such my estimated end date is August 2024.
My previous salary was £24k per year, but i've recently started a new position where my salary has increased exponentially to 36k per year.
My total debts at the start of the IVA were £11,000
I'd have to look into it in depth, but I think that i could now afford to pay £400 in to my IVA per month.
Given that the new potential payment far exceeds what I owe, would this be the case, or would the amount I owe the IVA company for handling my account mean that I still owe a significant amount to creditors at the end of my agreement even with the increased payment?
Your IVA payment will increase by 50% of your net increase in income. During an IVA you will owe the remainder of the full original debt, plus fees and possible statutory interest. The IVA will end, barring an early offer or failure, when you have made the scheduled number of payments, or hit the total of the debt, fees and interest, whichever comes first. On an £11k debt this would be around £15k plus interest, if applied, at 8% per annum, simple interest, calculated on the daily reducing remaining debt balance.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk