The Sprout IVA Early Settlement Loan: Myths and Legends – how to separate the reality from the rumours
People are talking about the Sprout IVA Early Settlement Loan and that’s a major plus as far as we are concerned! We like the conversation about our innovative financial product but we know because it’s new and different, some people may feel nervous and a bit puzzled by it. It may sound very strange and somewhat counter-intuitive when you hear that Sprout is offering a loan to someone in an IVA. We’ve had comments and questions along the lines of “why would you lend to someone with debt problems?” and “what’s the point?” That initial bewilderment is understandable, but - as we’re not a ‘smoke and mirrors’ sort of company and we don’t aim for an air of intrigue and mystery, we thought we’d debunk a few of the current confusing myths and legends around the Sprout Early Settlement Loan. We’ve found that sometimes if people don’t know what’s going on, it’s easier for all sorts of stories to evolve and that’s usually not very helpful, when you’re dealing with important financial facts and figures. Let’s separate the fact from the fiction and make things clear as crystal!
Myth no 1
Your IP will charge you extra fees to leave your IVA early
In all the IVA Early Settlement Loans we have agreed, none of our customers have been charged a fee to exit their IVA early. We have relationships with a variety of IVA firms and this hasn’t been an issue. A charge like this would have to be included in the IVA terms and conditions and your IP will inform you, if you ask them whether such a charge exists.
Myth no 2
You’ll still have to pay off your IVA – this is extra borrowing on top
Certainly not! This loan is designed to pay off and finish your agreed contract with your IVA. No more fees, no IP supervision and your IVA payment schedule is over (apart from other one-off items such as PPI, inheritance, additional pay or windfalls which have become due to your case during the IVA and haven’t been included in the loan calculations).
Myth no 3
What’s the point of this loan? If you take out a Sprout Loan you’ll have to pay off the total debt which you had when you entered the IVA
Oh no you won’t! The loan is agreed with your IVA company so it covers the remainder of your agreed IVA amount and is calculated to include the interest due. So, let’s be clear: the total amount of the loan clears your remaining IVA payments (with the exception of any additional sums such as those mentioned above, if they apply) and includes interest. You are not ‘back at square one’ regarding your initial debt before you entered the IVA. The point of this loan is that sometimes (for a variety of reasons) people want to leave their IVA – and if they have proved they can make and sustain repayments over three years, that indicates to us that they might be ready for financial life outside an IVA.
Myth no 4
You can use this loan for something else other than paying off your IVA
Afraid not! This loan is exactly as it says – the clue’s in the title. it’s a loan to settle your IVA early. Sprout pays the loan directly to the IP to settle your outstanding IVA debt. That’s what it has been designed to do.
Myth no 5
Your creditors will pursue you once more if you leave your IVA using a Sprout Early Settlement Loan
Creditors will not pursue you once your IVA has been completed – whether completion has happened either as originally agreed within the full term of the IVA, or when settled early such as with the Sprout Loan.
If you have read something confusing or have more questions and queries about the Sprout Early Settlement Loan or would like to speak to someone about this product, please call 033 3939 9393, or email us your telephone number and request a callback on info@sproutloans.co.uk. We’ll be delighted to tell you all about it!
REPRESENTATIVE EXAMPLE: If you borrow £2,000 over 24 months at Representative 39.9% APR, with an interest rate of 39.9% p.a. and fixed monthly repayments of £116.15, the total amount payable will be £2,787.50