I’ve been in an Iva for 4 years with DFD, with 29 months left. However Aperture who took DFD over rang me this morning. Apparently they are in partnership with another company and they try to complete IVA’s early for customers with a good payment record by way of what is effectively an unsecured loan. Advantages are that payments remain unchanged for the rest of the arrangement and you can start rebuilding your credit rating . This will add a couple of payments to the end and £7 per month. Has anyone else done this?
It can sometimes work out financially -- but you have to look at it carefully. Yes, the payments will be fixed, but you are effectively just replacing one debt with another --- what happens if you need a payment break, or you suffer a reduction in income ? There are no "lifelines". I would also be very suspicious of claims that it will help improve your credit rating --- yes, it will provide you with a little early history, but your rating will still be shot for the same length of time as for the rest of us. Finally -- why are they pushing this ?? To "reward" you for a good payment history ? I don't think so .......
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
In my mind, it makes no difference to your credit rating if you finish early or not as the IVA and defaults will not drop off until the full 6 years are up. I can't see how Aperture can make a sane argument to back up this claim. Plus I agree with what Foggy has said as well, there is no "reward" for getting a loan to pay off a debt that is being managed successfully.
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues
I had an IVA with aperture for 6 years, didn't have to pay 7th year as I had no equity in my house. Never missed a payment, had all my PPI and inheritance and I was considered an excellent client but they never offered me a loan. But for all the reasons already mentioned by others, I wouldn't have had the loan. Rather finish what I started. Must be a new thing for aperture, maybe they aren't coping with all the additional IVA clients they now have
Michelled0422 wrote:I had an IVA with aperture for 6 years, didn't have to pay 7th year as I had no equity in my house. Never missed a payment, had all my PPI and inheritance and I was considered an excellent client but they never offered me a loan. But for all the reasons already mentioned by others, I wouldn't have had the loan. Rather finish what I started. Must be a new thing for aperture, maybe they aren't coping with all the additional IVA clients they now have
This early exit loan is a recent arrival to the market --- I have no doubt they do OK out of it -- after all they still get their fees from the loan introduced into the IVA, as well as doing a couple of years less work. There is also the possibility of an introducers fee.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Also it looks like you've been sold the benefit being that the payments aren't changing but later you say it's £7 more a month so the payments are actually increasing and you are paying it for a longer period of time. I'm really not sure what the benefit of doing this would be.
Regards
Ryan Radford
IVA Mortgage Expert
Zebra Money Centre
IVA Mortgage advice needed? Looking at Right to Buy and completed IVA still on credit files ?
Personally I would not do a secured loan as you could you be in more debt.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Michelled0422 wrote:I had an IVA with aperture for 6 years, didn't have to pay 7th year as I had no equity in my house. Never missed a payment, had all my PPI and inheritance and I was considered an excellent client but they never offered me a loan. But for all the reasons already mentioned by others, I wouldn't have had the loan. Rather finish what I started. Must be a new thing for aperture, maybe they aren't coping with all the additional IVA clients they now have
Hmm, yes that could quite well be the case, although it could just be a case of them both scratching each other’s backs, as I would be paying £1,049 more and three extra payments! Thanks everyone for your advice, I think I was just putting too much emphasis on the fixed payment element , oh and the thought of no more annual bloody reviews, but I guess they’re a small price to pay! I’ve just got to wait for the paperwork to arrive and take a deep breath before I decline their ‘kind’ offer! Thanks again!
Sally
I’m with Creditfix and they offered me a similar deal using their sister company Perinta Finance to offer the loan. I had lots of reasons why I wanted to do this, not least around the pettiness involved in the management of my IVA. For e.g. having to complete another full I & E for the sake of 84 pence being their share of a months overtime. Anyway to cut a long story short despite being accepted by Perinta who offered me the loan, the early Completion was halted by some of my creditors. The reason stated was that they didn’t believe it was in my best interest. I was gutted at the time but I have to say that in hindsight it was probably for the best. I have one year left and interest rates are on the up, which will likely mean my mortgage will follow suit. With things as tight as they still are I may be glad of the potential lifelines. I.e reduction in payment or a payment break.
Glad of the support and help I received from this forum as always. Foggy, Kallis and other regular posters on here are absolute stars. Thank you.
To the OP. Good luck whichever direction you choose to jump in. That light at the end of the tunnel is not necessarily a train coming
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
SteveUK wrote:From a layman's point of view this just sounds like robbing Peter to pay Paul.
In our case this was what got us into this mess in the first place!
I agree, Steve. Many of us have tried consolidation loans (which is basically what this is), but without the "rehabilitation" provided by the IVA fall back into borrowing. Before my IVA I lived on credit -- which is how it became unaffordable. But, since my IVA ended, (over 4 years) I have not felt the need to take any credit -- a lifetimes habit changed for the good. I can only feel that being pushed back into borrowing is a retrograde step -- especially when it is not needd at all.
Having said that, there are a few, rare, occasions when it might be worthwhile ---if there is a large pay rise on the horizon or someone who is likely to leave you a large inheritance is gravely ill (morbid I know!), for instance. So, these early exit loans should be treated with the utmost care but not dismissed out of hand. The trouble is, some creditors have cottoned on that the reasons for these loans is to, at best, provide the IP with another income stream or to avoid an anticipated increase in IVA payments --- and they vote to reject.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
