Hi, so we owe just over 6k on the IVA. My questions is, we pay £85 a month on our IVA, New IVA, We still have 5/6 years left.
I have been reading that if you earn more your pay back more each month. Does this mean the IVA will end sooner rather than later. Say if we started paying 150 back a month or 200 back, well thats £10,000 over the 5/6 years, surely you wouldnt have to pay more than the opening balance of the IVA.
Second question, If you become self employed and started saving money to pay the IVA off in full, can this be achieved also? Or will they be like you cant save you have to pay more each month?
During an IVA you owe the full original debt, plus fees and also statutory interest (unless this has been excluded), not just the agreed monthly payments. Any extra you pay in (windfalls, overtime shares, etc) just add to the amount you pay off your original debt. It will not reduce the amounts or the number of payments you have to make, unless you hit that full debt, fees and interest earlier than the end of the arrangement. Only at the end of the term is anything you haven't paid towards debt written off.
If your income increases, so will your IVA payment. If your repayments are calculated correctly you should be unable to save enough to make a lump sum payment.
At £85 per month a good chunk will be eaten up in fees, so there will hardly be a dent in the original debt.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
