Loan vs IVA

gordyh

I am currently £25k in debt. I have tried getting a loan to repay this to no avail. Tried with Nationwide who I bank with and Virgin. I currently pay half my salary a month on paying this off as most of the debt is on credit cards so getting no where!!!!

I am about to move into a house which I have just recently purchased at the end of September. Should I wait until then to try and get a loan again?

An IVA is looking very promising at the moment. Have been told I will pay £300 over 5 years instead of +/- £400 over 7 years. Obviously I don't want to go the IVA route, if I cannot get a loan I will have to go the IVA route. So could some please give me some advice.

Thank you.

G

jamesd

Waiting will give you a very short time at your address, so that's likely to give you a worse situation. If and only if you have no late payments or CCJs you might try zopa.com for a 5 year 10,000 (their maximum, but rates depend on amount borrowed and you might get a better rate offer with a lower amount) loan. They will do a quotation search initially and only switch to full or hard credit search if you accept the offer. Apparently - new system so it's possible that it's not yet working as intended.

Failing that, moneysupermarket.com will have some lenders who would probably assist with getting you a loan for a longer term that would reduce the monthly payments.

If you haven't tried it yet, it's also worth contacting your creditors, telling them that you are contemplating an IVA and asking them if they would like to propose interest rate reduction and term extension that may allow you to avoid that step. For any that do make a proposal, their debt may end up beign cheaper not refinanced.

IVAs seem to be treated almost exactly like bankruptcy for mortgages and other credit, so it's definitely worth trying to avoid one.