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Desperate to Get Out of Debt, But Afraid of the IVA Fee?

Desperate to Get Out of Debt, But Afraid of the IVA Fee?
"""When considering the expense of an IVA, you must understand that each IVA is unique. There are numerous factors to consider when attempting to predict the outcome and success of an IVA payment plan.

What factors affect the price of an IVA?

The monthly contribution to your IVA will depend on your disposable income. Specifically, the amount of money you have remaining after covering your essential expenses (mortgage/rent, secured loans, utility bills, sustenance, etc.).

Due to the fact that IVA payments are designed to include everything you earn beyond the bare necessities, you can anticipate that your IVA will cost you your savings and purchases in the future years. This may seem daunting at first, but it will be worth it in the end to have peace of mind knowing that your finances are moving in the correct direction (and, ultimately, to be debt-free). In the long run, your payments will be manageable, allowing you to keep up with your IVA process as well as your other day-to-day expenses.

Additionally, IVAs are intended to provide both financial flexibility and stability. Consequently, if your disposable income increases (e.g. overtime pay, pay raises) or decreases (e.g. cost of living increases, pay cuts), your IVA payments may also change to ensure that your IVA remains equitable to you and your creditors.

What should I anticipate the total cost of IVA proposals to be?

Despite the fact that everyone's circumstances are unique, you should expect to pay an average of £200 per month for a debt of £15,000, which, after 60 months, would amount to a total of £12,000 repaid and £3,000 written off.

Similarly, you should anticipate monthly payments of up to £450 for a total debt of £60,000, which equates to £27,00 paid over 60 months and £33,00 written off. As you can see, IVAs become increasingly effective as your debt increases. Therefore, regardless of your level of debt, the cost of an IVA should not be a concern when it comes to paying off your debt.""

" - https://www.affordablecebu.com/
 

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"Desperate to Get Out of Debt, But Afraid of the IVA Fee?" was written by Mary under the Finance / Wealth category. It has been read 145 times and generated 0 comments. The article was created on and updated on 01 June 2023.
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