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Searcher
New Member
60 Posts |
 Posted - 24 August 2010 : 16:20:42
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I was musing over the IPA Payment table that Skippy13 has very kindly posted (on the blog, I think it was) and it is interesting to see how the amount to be paid rises with the surplus income etc.
Not sure who worked all this out, but (if I am not losing it here) it looks like there are points on the scale where you can be worse off if your surplus income rises.
For example, if your DI is £240, you pay 50% - ie £120, leaving you with £120. However, if your DI rises to £250, you pay 60% - ie £150, leaving you with £100. So, in that situation if you DI rises by £10, your are £20 out of pocket!!  |
Edited by - Searcher on 24 August 2010 16:21:52 |
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xmas baby
Average Member
537 Posts |
Posted - 24 August 2010 : 16:27:47
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Tell me about it. I am paying 66% of my disposable income, which is nearly the max percentage they can take. At least I am a third of the way through I guess.
xmas baby |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 24 August 2010 : 16:32:44
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quote:
Originally posted by Searcher
I was musing over the IPA Payment table that Skippy13 has very kindly posted (on the blog, I think it was) and it is interesting to see how the amount to be paid rises with the surplus income etc.
Not sure who worked all this out, but (if I am not losing it here) it looks like there are points on the scale where you can be worse off if your surplus income rises.
For example, if your DI is £240, you pay 50% - ie £120, leaving you with £120. However, if your DI rises to £250, you pay 60% - ie £150, leaving you with £100. So, in that situation if you DI rises by £10, your are £20 out of pocket!!
It depends upon how you look at it. One way is to say that depending upon how much DI you have you could be out of pocket as you mention. The other way is that even when you pay an IPA, after 36 months you are only paying a small percentage of your total debts back.
When you get you IPA work out how much of your total debt you would be paying back and this will make you feel much better. I pay 70% of my DI but this will only equate to about 35% of my total debt if I continue to pay this amount for 36 months and I am more than happy to pay this back. |
Edited by - gettingoutofdebt on 24 August 2010 16:33:53 |
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Searcher
New Member
60 Posts |
Posted - 24 August 2010 : 16:55:13
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I take the points, and don't have any problem with the fact that we shall only be paying back a percentage of the total debt over three years.
It just surprises me that table is so badly thought out. Surely the rates should be banded like Income Tax - eg first £100 free, next £200 @ 50%, next £200 @ 60% etc etc. Must have been a Friday afternoon job - even Working Tax Credit is scaled better than this...
Anyway, I it hardly matters in the big scheme of things.  |
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xmas baby
Average Member
537 Posts |
Posted - 24 August 2010 : 17:15:47
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I do agree that the IPA payment table is a bit strange. The fact that it changes from no IPA to 50% if the amount of disposable income rises £1 from £99 to £100 seems a bit unfair. You could have £99 to keep to yourself or only £50 all depending on the difference of £1.
Oh well, who are we too criticise I suppose.
xmas baby |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 24 August 2010 : 17:22:39
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I suppose there has to be a cut off point. However it was done there will always be someone with the extra £1 to take them into the next banding.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
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debtinfo
forum expert
2826 Posts |
Posted - 24 August 2010 : 17:33:08
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Exactly, there will always be someone that losses out and someone that gains there has to be a curoff point somewhere.
As regards the first £100 the reason it is set like that is not to give you the first £100 to keep but because the OR uses a collection agent and this costs therefore if your surplus is under £100 then the IPA would be £50pm of less, it is just uneconomical to employ an agent to collect that amount so the table starts when the IPA collected would be £50 or more,
Again there has to be a cut off and you are just unlucky if you fall the wrong side, although with a bit of negotiating on expenses you could try and make sure you fall on the right side if it is close |
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IPA Payment Table
