Choosing to leave an IVA early

How many financial choices do you have?

We all like to be able to make our own decisions –independent thought and action is a basic human right we exercise every day and is protected in law. . There’s talk at the moment about choices being manipulated by external influences - when it appears superficially as if we have a range of options, but we are channelled into a narrow decision-making route (Shotton, Richard ‘The Choice Factory’) - but what if you weren't offered choice in the first place?

The luxury of financial options

Wealthy people are much more empowered to make their own choices. Money gives you access to a much wider products and services which exclude the less well off. Finance is a bit like a funnel – the wealthier customers at the top, with stable credit scores and ease of access to the financial range of products and services, enabling them to borrow long-term, invest for the future, ensuring sustainability and prosperity.

The poverty premium and scarcity of choice

At the opposite end of the funnel are those at the bottom financially. They have access to much fewer expensive, short-term products, discouraging any kind of strategic approach to help future life chances. The penalty of poverty costs an average of £490 a year more for essential services, products and utilities (Joseph Rowntree Foundation). When you are counting the pennies that is an obstacle to success and even survival for some.

Designed to choose

Humans are hardwired to choose and debt managers confirm that all their advice and counselling won’t mean everyone takes the same path when it comes to dealing with debt and even something as structured as an IVA. IVAs may be a perfect fit for a client at signup, but years later the circumstances for that person may have changed and hopefully improved; which can make the IVA structure feel far too restrictive. It’s somewhat demotivating for an IVA client if extra income disappears into the IVA without benefit to them. It's more encouraging to have something to work towards, where the hard work of managing finances is rewarded by the opportunity to choose to leave an IVAIVA, if that is what suits best.

More choice - at the right time for the right people

What are the risks to those who have previously struggled if we increase choice? At Sprout we monitor outcomes from our IVA Early Settlement Loan to ensure customers are treated fairly, that the loan suits their needs and is affordable. Our reviews demonstrate clear evidence of customer satisfaction and people tell us the loan is working well for them. It’s a virtuous circle at Sprout, where our business success depends on getting the balance right for our customers. IVA firms also benefit by not having to manage cases where the client is looking for a way out.

If you have questions or would like to talk about the Sprout IVA Early Settlement Loan, please ring us on 033 3987 4167 or email us at info@sproutloans.co.uk

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

Valerie Nicholson