IVA - Sprout Loan

jellydog123

Hi, 
     Looking for some inpartial advice from people who used Sprout Loans to take a loan for a F&F offer.  

We hit all the criteria already and with another reviewing looming in 4 months, we are really considering it. 

I know its not for everyone, but we're homeowners and the freedom it would offer os worth it in our situation.  

I have briefly spoke to credit fix and Sprout about it and what it entails. 

Credit fix seemed pretty against it, strange considering I've been reading they used to recommend Sprout to people.  

Sprout said we've got nothing to lose if it doesn't get accepted.  


Hence the impartial advice from people here.  

Thanks in advance, would be a big help 

ManyWays

How far into the IVA are you? The IVA will remain on your record for 6 years even after its settled, your credit score will not improve until the 6 years are up and it will still be very hard to remortgage with a different lender or move.
These loans are borrowing at 40% interest (I just looked that up) and you are basically taking on all the risk of what may happen in the next few years. If you are still in an IVA you can get the payments cut or the IVA ended early if you lose your job or have health problems or galloping inflation hits, with this loan you will again default on that loan and the debt-badcredit cycle the IVA was supposed to end starts all over again.

jellydog123

We've weighed up the pros and cons, I appreciate it's not for everyone.  

We're more than halfway through, I know the Apr is high, but to be out of it would feel like a huge weight lifted.  

Just looking for anyone who's dealt with them and been through it themselves. 

Thanks 

No19v87

Your initial post asked for impartial advice so it seems counter productive to then say you’re going ahead regardless of what the advice offered is.

I’m not sure anyone would suggest exiting an IVA to take on a loan at 40% APR makes any sense at all. Borrowing money is how you ended up in an IVA to begin with.

Whatever weight is lifted from being out of your IVA is unlikely to be lifted too far when you’re paying thousands in unnecessary interest for x years.

sourcrates

What exactly is this huge weight you talk of?

You currently pay an affordable monthly payment which gives you legal protection from any further action by your creditors, its the one big benefit of an IVA, once your in it, you can`t be touched legally.

You want to throw that away, and go back to a high interest loan, of the kind that likely got you into an IVA in the first place, I`m sorry but that makes very little sense to me.

jellydog123

Thanks for the replies.  I'm looking for advice from someone who went through the process, based on their experiences.  

Wright being lifted meaning, we have iur own property so final year and releasing equity potentially, that concerns us.  

Being in an IVA you feel like you're under a microscope and when the review comes around you feel very anxious, even though you know you've done as best you can.

Yes the APR is high, but all restrictions on overtime for me will be lifted and I can put it towards the loan, hopefully paying off early.


Not sure if anyone who replied had been in an IVA, but if so you'd see it more from this perspective. 

Thanks  

sourcrates

Yes I had an IVA, what you say makes sense, to some degree, but personally, if I was looking to ditch the IVA, I would just allow it to fail, just stop paying it, I would not want to lumber myself with more debt.

It takes on average about a year for it to fully fail, in that time you could save a hefty sum of money to use as a future settlement fund, for when the dust settles and the lenders come looking for money again.

No doubt your debts will have been sold on at least once, the debt purchasing companies that pick them up for pennies in the £ should be able to be bought off quite cheaply.

I would rather do that, than get back in the debt game again, borrowing money at silly rates of interest.