IVA

[rebeccadjcolley]

I have recently completed the first year of my IVA which was originally set up for 60 monthly payments of £167.

I had debt of £16,095 therefore the total repayable would have been just over £10,000.

Since I set this up, my income has increased substantially and my IVA payments have increased to £309 per month. Based on this new monthly payment, I have calulated that the total now payable will be £17,000 by the time 5 years has been completed.

My income is likely to rise further in the next 2 years and therefore I am concerned I could end up paying a lot more than the actual debt I took out.

Does anyone know what happens if I do this? Does the IVA finish early or does it continue despite the fact I will have paid back a lot more than the original debt!!

Thanks[:0]

[David Mond]

You will only ever have to pay up 100p in the £ plus the IP's cost as a maximum.

Glad your income is improving and if it means that you meet the 100p in the £ before 5 years are up then your IVA will be concluded early.

[sparklywatcher]

Hello, you never pay back more than the original debt plus IP fees. All that will happen is you will finish your payments early. The IVA will still stay on your credit score for the full six years

[rebeccadjcolley]

Thats brilliant, thank you. I've been worried about this all day wondering if I had been ripped off!!

Thanks again.

[sparklywatcher]

glad things are looking up for you xx

[LoneRanger]

With the pay rises you may well look forward to finishing it early. Do rememeber it will stay on your credit file for 6 years though as already stated.

[MelanieGiles]

It is a great feeling to be able to pay your debts off in full, and whilst you also have the IVA costs, you do not have the ongoing burden of interest and collection charges.

[David Mond]

And enables you to think clearly and being able not to make the same financial mistakes in the future.