Just completed my first year, PPI money is more than my original debt.

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alison776
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by alison776 » Sun Oct 08, 2017 5:00 pm
Hi i have just completed my first year on my IVA, I pay £80 month during my iva the company checked to see if i was owed any PPI which they said would go off my debt. I am a bit confused as the amount of PPI that has come in and what i have paid over the first year has come to more than my original debt and they are saying i still need to carry on paying £80 a month for the next 4 years which would see me paying back double what my original debt was
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Foggy
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by Foggy » Sun Oct 08, 2017 5:13 pm
The IVA will end early when you have paid in the full original debt, fees and possibel statutory interest. How much was the original debt, and how much PPI was paid (remember only a fraction of the PPI refund actually gets to the IVA after the claims company fee (typically about 30%) has come out)?
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alison776
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by alison776 » Sun Oct 08, 2017 7:04 pm
Foggy wrote:
The IVA will end early when you have paid in the full original debt, fees and possibel statutory interest. How much was the original debt, and how much PPI was paid (remember only a fraction of the PPI refund actually gets to the IVA after the claims company fee (typically about 30%) has come out)?


Hi My original debt was £5482.69 so far i have paid back £1200 and had PPI of £5862.87
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Foggy
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by Foggy » Sun Oct 08, 2017 7:18 pm
First of all -- what are you doing in an IVA ? This is a sledgehammer to crack a nut !

Anyway on a debt of £5482, to clear the lot, you would need to pay in around £8,000 plus statutory interest ( about £430 a year). So far you have paid in £1200 and about £4100 of the PPI, so £5,300. As interest is on the reducing debt balance there won't be much more of that added. At a guess you are looking at paying another £3,000 ( about 3 years ) .. so the IVA could end a year early as a guesstimate.

What is annoying is that, if you claimed the PPI yourself, before starting the IVA you could have paid everything off in one go.

Who is your provider ?
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alison776
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by alison776 » Sun Oct 08, 2017 7:36 pm
Hi I wish i had gone through the PPI myself, I do feel like i was mislead as i used to be with ideal debt solutions and now im with creditfix as they said all the time im with ideal debt solutions im being charged but with the amount creditfix are taking it dont seem much better
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Foggy
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by Foggy » Sun Oct 08, 2017 7:57 pm
alison776 wrote:
Hi I wish i had gone through the PPI myself, I do feel like i was mislead as i used to be with ideal debt solutions and now im with creditfix as they said all the time im with ideal debt solutions im being charged but with the amount creditfix are taking it dont seem much better


Did Creditfix buy your case from Ideal? Are you sure that you are in an IVA or is it a DMP (Debt Management Plan)? Most firms charge much the same as each other for an IVA.
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alison776
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by alison776 » Sun Oct 08, 2017 8:09 pm
Hi
Im not sure how creditfix did it but when i was with ideal debt solutions they were paying a small amount to each of my debts Yes i am in an IVA But ihave asked them how much would i need to pay to finish it early
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Foggy
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by Foggy » Mon Oct 09, 2017 6:51 am
There are two ways to finish early :

Settlement - which means paying everything owed. And:
Full and Final - which means paying an offer based on payments outstanding.

In your case there is not a lot between them !
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alison776
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by alison776 » Mon Oct 09, 2017 10:11 am
Foggy wrote:
There are two ways to finish early :

Settlement - which means paying everything owed. And:
Full and Final - which means paying an offer based on payments outstanding.

In your case there is not a lot between them !


Hi
With the information i have given you can you advise on what would be an amount to offer
Regards
Ali
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