Final Month of IVA - Dilemma

debtinfo

If you do end up taking the secured loan do they allow you to overpay at the same rate of the iva payments to pay off earlier and avoid lots of interest, it is really only 10 years long because of the low payments

FoggyBrain_2

debtinfo wrote: »

If you do end up taking the secured loan do they allow you to overpay at the same rate of the iva payments to pay off earlier and avoid lots of interest, it is really only 10 years long because of the low payments

Good point, debtinfo. In which case you could get shot of it in around 18 months. Presumably the good repayment history that will put on your credit file won't do you any harm either :-)

smartiedriver_2

It sounds like a poor option, I have to say. I would do everything you can to resist the loan and either end the IVA now or at worst pay the additional 12 months.

Plus, and this is just a thought, it would take a while to get the secured loan agreed, put the security in place, and draw down the monies.

If your IVA is due to end this month,what happens to it in the interim period (assuming you went down the secured loan route)? Would you still be expected to make the monthly payments? Would the IVA fail? If you did keep up the repayments, the F&F amount would therefore be less, which makes the secured loan even less of a sensible option.

These are just questions I thought of, sorry they aren't answers.

Good luck though.

spaceman5

debtinfo wrote: »

If you do end up taking the secured loan do they allow you to overpay at the same rate of the iva payments to pay off earlier and avoid lots of interest, it is really only 10 years long because of the low payments

i would think there will be some penalty fines for doing that

spaceman5

There is definetly something fishy going on here, can you check whether there is some link between your iva company and the company they have told you will give you a loan?, i would certainly take advise from somebody like the CAB, as the line about your creditors refusing to take an extra 12 months payments if they know that somebody is offering you a loan does not sound right to me, in the first place how would your creditors know that somebody is offering you this loan in the first place unless your iva company goes around telling them all, also check the wording of your original iva documents when you signed up for it, as i am pretty sure there will be a clause in there saying something along the lines of, if you cant remortgage towards end of iva then you will need to make another years worth of contributions, nothing about taking out a ridiculous loan at extortianaote rates to pay of your loan, if that was the case then everybody that is in a iva that has a mortgage would have to go down this route, and ths is the first time i have read of anybody having to do this, this iva company of yours sounds really dodgy, would not be surprised if you do manage to be able to pay the extra 12 months they do a review and find a reason to up your monthly contributions substantially :eek:, good luck;)

leeds4ever6

hi there, iv just read your post, i would forget the loan ( they are talking rubbish) trying to to con you springs to my mind...... your ip will extend it 12 months without question, pm me if you wanna chat.

mulder68

Hi thanks for the further advice

I have registered on the IVA forum board thanks to Foggys recommendation and an employee of Debt Free Direct posts over there. He is looking into my case. I will let you all know the outcome but I can tell you now that I won't be taking the loan.

Thanks again

spaceman5

mulder68 wrote: »

Hi thanks for the further advice

I have registered on the IVA forum board thanks to Foggys recommendation and an employee of Debt Free Direct posts over there. He is looking into my case. I will let you all know the outcome but I can tell you now that I won't be taking the loan.

Thanks again

wise choice