Overpaying IPA and shortening the term.

elljay

Dear all, I think I'm beginning to ask silly questions now that all the big stuff seems to be sorted but still!!

I have today received details of how I go about paying my IPA and when it is to start. It gives the total I will have paid at the end of the 3 years. My question is, if I overpay sometimes when I have saved a bit from my food etc budget, so that I reach that total before the 3 years is up, will I be able to escape from the IPA early? Or do they not allow overpayments?

Thanks. EJ

tigerfeet2006

Anything you save then I would keep for emergencies.You never know when they might happen and it makes sound money sense to have a buffer, especially when BR. But don't save thousands as the OR will come for it.

Also if you start paying odd amounts the OR will think you have more spare money than you say you have and will up the payments so you have to pay more back.

egrescrimp

elljay wrote: »

Dear all, I think I'm beginning to ask silly questions now that all the big stuff seems to be sorted but still!!

I have today received details of how I go about paying my IPA and when it is to start. It gives the total I will have paid at the end of the 3 years. My question is, if I overpay sometimes when I have saved a bit from my food etc budget, so that I reach that total before the 3 years is up, will I be able to escape from the IPA early? Or do they not allow overpayments?

Thanks. EJ

Keep in mind that total amount is what you'll pay based on your current monthly payment arrangement, that total amount will go up or down if your circumstances change. So over payments won't make the amount go away quicker, it will just alert the OR to the fact you have more money available and can afford to increase those IPA payments

GoingUnder

I made an offer to end mine 3 months early which they accepted. They got confused what I needed to pay initially, but sorted in the end and received a letter confirming the IPA had ended.

debt_doctor

GoingUnder wrote: »

I made an offer to end mine 3 months early which they accepted. They got confused what I needed to pay initially, but sorted in the end and received a letter confirming the IPA had ended.

Blimey - that seems to have passed quickly! Must feel good for the IPA to end.


DD

alastairq

Do the conditions of the IPA period [3 years] still remain if one has an early payment offer accepted?

GoingUnder

debt_doctor wrote: »

Blimey - that seems to have passed quickly! Must feel good for the IPA to end.


DD

It certainly did, your help was much appreciated.....twice!


Alistair, my letter said the IPA was finished, and I have had no correspondence advising me that I have to keep them updated.