paying more a month on your iva

[sick of it all]

Hi If you are in a position to pay more a month on your iva, does it get paid off quicker or still just run for 5 years but pay more towards it??

[Dominic]

it still runs for 5 years, the creditors jsut get more

[sick of it all]

Thanks Dominic, I thought as much!!!

[kallis3]

It can end earlier if you manage to pay back 100p in the pound plus fees before the five years are up.

[sick of it all]

kallis, does that mean if I manage to come up with what I owe on the IVA as a lump sum, it will be cleared? would they normally take a percentage of what you owe or does it have to be the full wack?

[kallis3]

No, you would have to pay back everything you owed to your creditors, not just what was agreed in the IVA.

[sick of it all]

so how does some people manage a full n final settle ment but only pay a fraction of wot they owe? im sorry i dont know that much about it all im afraid

[kallis3]

A full and final is totally different. It is usually if you can't continue with your normal payments and is normally when family or friends either gift, or loan you the money to make an offer. There is no guarante that it will be accepted by the creditor.

[sick of it all]

aw right I understand, thanks for ya help

[Foggy]

One way, I am guessing, of effectively shortening the term by making overpayments - ish .... would be to take what you felt you could have overpaid each month and pop it in a separate bank account. Towards the end of the term it could amount to the equivalent of a few month payments ---- say you have managed to save 6 months worth of payments from your allowances ( which would be going some!)at month 54 you start making the payments from that pot -- so it FEELS like you have finished.
Of course, you will still be under the IVA until the end of the term. But the advantage is that you's also have a worthwhile contingency fund building up.

[kallis3]

Any savings you can make, then save them in a different account in case you have a major problem with anything.

An overpayment will not shorten your term unless you can pay back 100p in the pound plus fees.