Taking a loan to repay an IVA

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gareth701
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by gareth701 » Mon Aug 13, 2018 1:06 pm
I’m currently in an IVA with PayPlan. I’ve paid 38 payments of £307 with a remnaining 32 left.

I’m looking at the possibility of getting a loan from Sprout? To pay the balance early. I have the potential to raise a small lump some around £3000 to reduce the amount outstanding.

Does anyone have any knowledge or experience of these or can recommend another provider?

The reason for wanting to pay it off is potential pay rises in the future.

Thanks

Gareth
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Foggy
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by Foggy » Mon Aug 13, 2018 1:16 pm
The lump sum will not reduce the amount owing --- you still owe the full debt, plus fees and statutory interest until the IVA has concluded. Sprout will need to work with your IP -- as they will need his approval. Also, some creditors will routinely reject an offer based on further lending ... so a bit of a gamble.
A Sprout loan for £9k will see off pay rises for the forseeable future in interest.
herewegoagain
Posts: 6
by herewegoagain » Mon Aug 13, 2018 3:00 pm
Foggy wrote:
The lump sum will not reduce the amount owing --- you still owe the full debt, plus fees and statutory interest until the IVA has concluded. Sprout will need to work with your IP -- as they will need his approval. Also, some creditors will routinely reject an offer based on further lending ... so a bit of a gamble.
A Sprout loan for £9k will see off pay rises for the forseeable future in interest.


Hi Foggy,

Thanks for your response, so I would use the loan as a full and final settlement. So obviously if that was accepted I would no longer have any debt? Other then service the loan?

I’m hoping the spout loan would be significantly less then £9000 once an offer had been accepted I would also like to use a small amount of money from a relative to reduce the loan amount further.

Does anyone have any experience if these?

Thanks

Gareth
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