I have just had my offer from 'Just Lending' (Perinta Finance).
It is an unsecured loan at 29.4% APR, with a £200 arrangement fee built into your repayments.
the total of my remaining 23 IVA repayments would be around £6,400 IF they stay the same.
the loan offer is £275 over 34 Months - so £9,400 and a shade under £3K more than the remaining IVA repayments.
If that was not bad enough, here's the real kicker: Even if you plough any O/T bonuses into repaying the loan early, there is no reduction in the interest, so it cost you £9400 regardless of how soon you pay it off.
However, I am on the cusp of getting a contract, which will increase my company turnover by £15K per Year. That will result in a significant payrise and will cause my IVA repayments to go up.
Going back to a comment Michael made a while back, which went along the lines of being able to 'shop around'.
Easier said than done I'd say: Anyone aware of any IVA early exit loan (secured or otherwise) with better terms, available to IVA customers?
Got some thinking to do...
My opinions are just that: Based on my experience and being a self-employed IVA customer.
Shaun Vickery from Select has access to secured loans and his details are in the experts section. However, if you own your own limited company you do not have to take an increased salary and any new profits will not show through until the accounts for the year are finalised which could be some time away. You could then declare a dividend of which around half would be captured by the IVA and use the rest as a full and final settlement.
