Radish wrote:In my own IVA, when I was earning more, I was expected to pay more, when I was receiving less, and couldn't make the payments, they were capped onto the end of the IVA. It doesn't feel like its meant to work out in our favour for a lot of the time, however, whenever I do the maths, the same thing keeps coming to light, whatever I thought about the IVA, and sometimes not a lot, I would still have been in debt today without it. Even when it seems unfair - it got me to a place I never thought possible. Debt freedom, and I paid £25k back for 18.500 owed with windfalls received along the way (and had to pay over). I cursed and screamed all the way - but then I look at where I am today.. Very hard road but worth it when you get there.
Very good point, Radish. We all hurt at the time, but lose sight of the fact that we would have been in a worse plight otherwise. When I went into my IVA I was at the stage of making minimum payments on everything each month. This barely covered the interest and, over the five year term of an IVA, I would have shovelled every spare penny into my debt and still have been worse off at the end !
We entered owing nearly £50k. There was no way we would have managed without an IVA. All the way through we kept telling ourselves we owed the full £50k even though we wouldnt ever pay it all back.
We lost an inheritance and PPI but payments remained as planned whole way through.
Never did we say 'but we are only meant to pay back X amount' because thats not what its about.
The original plan is to aim to pay back X amount using your disposable income however you will always owe the full debt amount and assets, windfalls, payrises, ppi etc goes in the pot towards repaying.
If we had received PPI/windfalls etc without an IVA it (well most of it) would have been used to pay off some debt.
Sorry it seems that youre friend is paying back more than planned but ultimately she borrowed a lot more amd as much as possible needs to be repaid then any remainer will be written off at the end.
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