IVA Completed with Early Exit Loan

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flossom
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by flossom » Wed Jun 14, 2017 7:15 pm
Hi,

I know what I will post about what we have done won't be to everyones taste but it has certainly been the right way to go for our situation...

We are coming up to our 4 year anniversary and were looking forward to a year left. We received letters from Perinta saying Creditfix had put our details forward for the early exit loan option. NO WAY was I going to do that...my partner wanted to as he spoke to them at length on the phone but I refused to take their calls because I knew better! We argued about it and finally got an estate agent in to give us a valuation based on a forced/quick cash sale...Oh my was I wrong...house prices in our are have really shot up and I was scared. The price would definitely mean the extra year clause coming into effect and I didn't want that. So cap in hand I called Perinta.

That was 4weeks ago and today I had the call to say out full and final has been accepted! Yay so happy. YES it does mean we are paying interest on a loan BUT it will be finished 6 months earlier than the extra year AND we are actually saving money as we won't be paying back as much over the loan length and also I can now keep all my bonus from work every month! Im very happy with the service and really quick turnaround...4weeks from start to finish. If we want to we can pay in extra or finish early if we want to. We were told we will get a completion certificate in the next 4weeks and the hold on the property will be removed with the land registry. They went through all the bits in relation to the ova showing as complete and of course we are aware it won't fall off our credit file for another 2 years but we don't care!

Still not debt free but I feel free of the shackles of the IVA and having to justify what I spend every month. It felt so goo to cancel our standing order to Creditfix and Perinta just take over the payments now.

Im not a poster on here but I'm a long time lurker...it helped me to feel that we weren't on our own in this situation...financial difficulty is a very isolating problem and I feel is a real taboo area for people to talk about. Thank you for being here and I hope many other people benefit for the words of wisdom from the regulars. Thank you x
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Foggy
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by Foggy » Wed Jun 14, 2017 7:29 pm
Hi. I am happy it has worked out for you and your own set of circumstances. Although I am not in favour of these early exit loans I would always say to have a look at the figures as, as you know, sometimes they work out as acceptable.
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harrysmummy78
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by harrysmummy78 » Wed Jun 14, 2017 8:27 pm
Well done hope it goes quickly for you and you will be debt free very soon :D

We were contacted by Perinta as well some time back, With hindsight we do wish we had taken up this offer as I have now been made redundant at month 52 but CF have put a F&F offer forward for us which hopefully will be accepted on the 6th July. We do wish we had considered the early exit loan though.

Hope all goes well for you Flossom :D
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Foggy
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by Foggy » Wed Jun 14, 2017 8:40 pm
harrysmummy78 wrote:
Well done hope it goes quickly for you and you will be debt free very soon :D

We were contacted by Perinta as well some time back, With hindsight we do wish we had taken up this offer as I have now been made redundant at month 52 but CF have put a F&F offer forward for us which hopefully will be accepted on the 6th July. We do wish we had considered the early exit loan though.

Hope all goes well for you Flossom :D


This is one drawback with the early exit loan ..... you have been made redundant, so are looking to end the IVA with a F&F. Had you taken the loan ... how would you be making the repayments ? They can't be delayed or reduced and we have yet to see how Perinta might react to such a situation.
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harrysmummy78
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by harrysmummy78 » Wed Jun 14, 2017 8:44 pm
Foggy wrote:
harrysmummy78 wrote:
Well done hope it goes quickly for you and you will be debt free very soon :D

We were contacted by Perinta as well some time back, With hindsight we do wish we had taken up this offer as I have now been made redundant at month 52 but CF have put a F&F offer forward for us which hopefully will be accepted on the 6th July. We do wish we had considered the early exit loan though.

Hope all goes well for you Flossom :D


This is one drawback with the early exit loan ..... you have been made redundant, so are looking to end the IVA with a F&F. Had you taken the loan ... how would you be making the repayments ? They can't be delayed or reduced and we have yet to see how Perinta might react to such a situation.


Yes Foggy, but the money my mum is using to fund the F&F would have paid this off and I would have saved the stress of going through this now :(
redboxtree
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by redboxtree » Thu Jun 15, 2017 12:29 pm
If you go into an IVA at 40 and have a mortgage it effectively takes 7 years of your life to go into it and them come out.

That would be almost 20% of your life and no wonder someone would consider an exit alternative.

Also, with HMRC potentially pushing for home ownership issues being redressed at 36 months rather than towards the end of the IVA things are changing.
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Foggy
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by Foggy » Thu Jun 15, 2017 12:48 pm
redboxtree wrote:
If you go into an IVA at 40 and have a mortgage it effectively takes 7 years of your life to go into it and them come out.

That would be almost 20% of your life and no wonder someone would consider an exit alternative.

Also, with HMRC potentially pushing for home ownership issues being redressed at 36 months rather than towards the end of the IVA things are changing.


Things are definitely changing .... some firms are "getting into bed" with creditors and hardening their treatment of "clients". These firms are getting larger and hogging more and more of the market. Eventually an IVA will, effectively, be run by the creditors through pet insolvency firms and the debtor will be the loser.
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