www.iva.co.uk

hi I am currently in an iva march 2016 , and have had a call off my iva people asking if I would like to exit early (as I have never missed a payment) , my question is with the doom and gloom up and coming ( i.e speak of another downturn ) would I be better protected staying in the iva or taking early realese . many thanks pj

I assume what they have actually offered you is an early release loan --- these do work for some but not all --- nothing to lose by getting the figures together !

I do look at these things with a smidgen of suspicion --- making every payment is a requirement of the arrangement and not grounds for a reward .... so who, apart from the finance company, benefits ...... ?? Your IVA provider ( the bestower of the reward) might get a fee (just a guess). They certainly save themselves a heap of work and still get their fees in full .... nice work if you can get it.

But, hey, I am a grumpy old cynic

Also -- have a look here https://debtcamel.co.uk/aperture-iva-exit-loan-sprout/

and here: https://debtcamel.co.uk/ip-regulation-major-problems/

Where Debt Camel says : Early exit loans

I was critical of these on their introduction in 2016. The IS review says:

The loans… ultimately cost the debtor substantially more… are sold on the basis they will help the debtor in the long term, by improving their credit rating. There does not appear to be any evidence that this is actually the case… By concluding the IVAs early the IPs concerned will also benefit by not having the ongoing cost of managing the IVA so there may well be a conflict of interest.

That is a fair comment on the Perinta/Creditfix loans, which have not been offered since the start of the year. But it seems a slightly harsh description of the Sprout loans, where the creditors take a haircut, reducing the cost to the debtor.

hi thanks for that , I an unsure because I feel like I have some cover/support if I am in an iva , were as if I leave and have an unsecured loan and there is a prob im on my own .
I also feel the iva has taught me a very good lesson . I now take more care especially in managing my affairs , and political affairs .

I agree with your last comment about support. If anything happens where you might need to adjust outgoings or take a payment break because if a dire unexpected emergency whilst your credit history is still going to be affected by an IVA, you might find yourself stuck with no options and a loan you need to pay.

To my feeble mind a great part of the IVA is the rehabilitation aspect and, of course, leaving the experience debt free. I feel that early exit loans defeat both of those aspects and lead you right back into a potential debt spiral.

I agree Foggy.


Regards