Our disposable income at the moment is about 240 pounds a month and when the car is paid off in about 2 years time there will be an extra 216 pounds
We have been told by the company that we are using that it would mean that we would be paying in more into the iva than we owe ????
And it may not be possible to get an iva because of this or we would loose the extra that was paid in
My question is surely if we can pay the debts off completely before the iva is finished then all the better and the iva is stopped ? Thank you for any advice.
Although, on the face of it, you will be paying more than the original debt, you would be paying far less to be debt free than if you simply carried on paying the debts as they stand. This is because statutory interest (which could be excluded if the creditors agreed -- mine was) is at 8% p.a simple, whereas the contractual interest on your debts is likely to be far more as well as being compound. The reality is that, without the IVA you are unlikely to ever be debt free, forever paying interest. The other advantage of the IVA is that the creditors cannot take any enforcement action against you, so you have an element of peace of mind.
I would suggest having a word with a couple more advisors as the advice you are currently getting seems a little off key.
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