Early settlement - sprout loans

MrFrugalFever

Hi all,

just wondering if anyone has any experience with settling their Iva early with sprout loans?

the logical decision (most cost effective) for me would be to get a friend or family member to loan me the sum for a F&F, but just curious as CreditFix who I’m with actually promote this company.

i feel as though I am ready to release the shackles and head back out in to the financial market with a new lease of money management.

fatbelly

Debt camel wrote about this a couple of years ago

https://debtcamel.co.uk/perinta-loans-end-iva-early/

MrFrugalFever

Thanks fatbelly, makes for interesting reading. I may contact one of these loan companies, starting with sprout loans as they are mentioned by creditfix, to ensure that my consumer right to make partial overpayments which incur rebates of interest is applicable. What I would like to essentially do is end my IVA early and settle the loan early.

sourcrates

I wouldn`t do it, you have come this far, your time in debt will be extended, and anything can happen during that time.

Your IVA was designed to get you out of debt, if you did default on this loan, all you have achieved would be wasted, and the time your credit file is affected would be extended.

I personally think its a very bad idea, and not in a clients best interests.

Rachelm91

Just curious of what your experience with sprout loans was like if you did end up using them? Thanks

MrFrugalFever

Hi Rachel,

I haven’t as yet although I have had quite a discussion with them over the phone (anonymously), so I can carefully and cautiously make a judgement best suited to my situation.

the advisor was helpful and explained that it is indeed possible to use the route as they would consider an application for an agreement in principle, prior to actually signing it off, it would then be submitted to the IVA firm for approval via a meeting with creditors. They would offer a loan of 85% of remaining total payments at an interest rate of 39.9%APR.
if creditors agrees the F&F settlement from the loan company they would transact with the IP not me. I would have the total amount of months left on IVA plus 3 months, with interest of course.

i would need to wait until the certificate of completion before and overpayments or settlement in full can be considered.

the minimum term for the loan is 18 months so 15 months left of IVA. I didn’t ask what the maximum was as I was only interested in paying it off as quickly and cheaply as possible.

the benefit to me is what I am considering and whether I am playing a fools game by carrying on the IVA.

are you in an IVA? If so, How far in to it are you?

Rachelm91

Thanks for the reply,

im currently 29 month in so should be able to apply after my payment at the end of the month.
Did sprout loans approach you or did you get in touch with them? Did your Iva company suggest them and if so at what point in your Iva?
im with debt management which used to be Jarvis which used to be Aperture, and I remember receiving an email from when it was Aperture regarding being eligible for one of these loans in the future.

sammyjammy

So the loan would for just over £6200?  How long would the loan be?  Without working it out I think you would end up paying much more than you would if you stuck with the IVA.

MrFrugalFever

Rachelm91 said:

Thanks for the reply,

im currently 29 month in so should be able to apply after my payment at the end of the month.
Did sprout loans approach you or did you get in touch with them? Did your Iva company suggest them and if so at what point in your Iva?
im with debt management which used to be Jarvis which used to be Aperture, and I remember receiving an email from when it was Aperture regarding being eligible for one of these loans in the future.

Hi Rachel,

sorry for delayed reply.

i approached them after reading about them on my Iva firms website (creditfix). 

I would give it some serious thought as you will end up paying more than if you just stick it out with the IVA so there must be a good reason for why you want to and it’s not guaranteed they will lend on your behalf either.

They’re simply a Phone call away though, good luck, 

MrFrugalFever

sammyjammy said:

So the loan would for just over £6200?  How long would the loan be?  Without working it out I think you would end up paying much more than you would if you stuck with the IVA.

It will cost me approx £800 extra In interest by going down the loan route, however, what it allows me to do is keep extra income and make overpayments, therefore reducing total amount of interest.

Rachelm91

I know the payments will not be more than my Iva payment which I can afford, but it’ll mean I can do as much overtime as I want and keep the money to myself with just moving in with my partner I’ll definitely benefit from the extra money. I’ve been able to keep my overtime atm with being a key worker but when we come out of lockdown properly I’ll have to turn down the overtime.