So yesterday I received a text from Creditfix re. the cost of living.
They said that, based on the increase in the cost of living, they have carried out an assessment on me and believe I'll be unable to continue to make my payments of £268.00 monthly to my IVA.
With that being said, they have put forward a suggestion of a more reasonable payment of £144.62 to be paid monthly, and will be happy to propose this to my creditors if I choose to accept it, with my permission.
To add, this has come out of nowhere, and this isn't something I have initiated.
The kicker is, if accepting this, and the creditors accept this, the IVA will he extended for an additional 24 months on top of the original 60 months.
As such, I don't really know what to think of this. I'm not going to accept it, as I don't want to be in this for another two years - the idea of that is horrible in itself. But with that being said, I feel like this is a way for them to counteract anyone who argues that their payments have gone up at their annual review, and that Creditfix will just say "well you chose not to accept our proposal of reducing the payments, so it's your own fault" kind of thing.
I started to read it and think wow that's great, then I got to the part where they add another 2yrs on and though nahhhhhh. I have 10 payments left and I would sooner live off beans on toast for those 10 months than add another two years on. But I am also quite fortunate that my gas and electricity are on a fixed tariff and I won't feel that increase until after the IVA ends, I don't have a car so I won't feel that one either. But council tax and food I am seeing.
Off topic, I don't know how people with any debts will be feeling right now. I was at a point in the past, pre IVA where any single one of those cost increases would have left me with nothing rather than £40ish a month and I was perma stressed.
Wow ...CF actually doing something without being asked !
What are your thoughts ... if you are happy to manage on a very tight budget for the balance of original time then I would not accept the offer.
However, I would be sure that this is realistic- none of us know where this will end. We don't know the true extent of the situation in Ukraine with Russia. There is no guarantee that things will get better ...
I think if it were me I would accept the proposal, but then save the saving each month while I can afford to do so that you can build up contingency and potentially offer a lump sum full n final offer later possibly.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Different ways to look at this --- you currently have around 4 years left and around £16k to pay at the current rate.
With the newly proposed, reduced, payment and extension, there would be in the region of £10.5k to pay over the remaining 72 months, with the extension as suggested.
You are currently considering a F&F payment of that £16k. In your place ( and this is purely opinion and in no way advice) I would be inclined to give the proposed offer a go, spend the next 12 months making the reduced payments and letting the dust settle and then re-visit the F&F idea, which would then be based on 60 remaining payments of £144 ( £8640 ).
Or go through with this proposal and, if it is accepted, live a little better and reconsider the F&F in the last few years to lop off the extension then.
Just make sure that there is nothing in the new agreement to prevent future F&F offers.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
How much have your gas and electric gone up so far, are they going up again in April and then probably again in October? What about water council tax mobiles food petrol etc
If you are as CF say £120 short then proposing to keep paying the same will turn out to be very very hard. Beans on toast is okay for a few months not years.
I just got the same text I pay £129 a month and they said it can decrease to £86.32 but they want 23 months extra on the Iva which would end 06-09-27. I have refused and said no. Purely because they already have made me add on another year to make it 6 years I’m not happy to add nearly another 2 years to make it 8 years in a Iva.
As much as I detest being in a Iva I want to complete the full 6 years and just carry on with my life and never touch credit again and have certainly learnt my lesson not add more time on..
Wed Mar 30, 2022 6:22 pmJessie91 wrote:
I just got the same text I pay £129 a month and they said it can decrease to £86.32 but they want 23 months extra on the Iva which would end 06-09-27. I have refused and said no. Purely because they already have made me add on another year to make it 6 years I’m not happy to add nearly another 2 years to make it 8 years in a Iva.
As much as I detest being in a Iva I want to complete the full 6 years and just carry on with my life and never touch credit again and have certainly learnt my lesson not add more time on..
When you start extending these arrangements, mid-term, to the order of 8 years, you bring into question the original advice --- had the IVA been proposed at 8 years initially, you might well have chosen a different solution in the first place.
If CF's main motivation was to make life a little easier they should have ( assuming they have used the usual clauses) the ability to reduce the payment by, in your case, just short of £20 a month with no need to extend or consult creditors.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
What they fail to mention, however, is that they can reduce either your monthly payments or the total amount owed by up to 15% without the need to call a variation meeting of creditors.
They also probably conveniently forget to mention that they will charge a variation fee for calling the meeting, which will usually be £400. They will also normally charge further supervisory fees of £400 for each additional year the IVA is active.
Personally, if your gas and electricity has gone up I would try your best to find the cost savings elsewhere in your budget before considering the offer and only taking them up on it as a last resort. With the extension, the money likely won't reach your creditors and will be swallowed in fees.
As usual with CF, tread carefully.
Hi! I used to work for one of the UK's biggest Insolvency Practitioners - I don't work for an IP anymore but still have an extensive knowledge of the IVA industry. How can I help?
