www.iva.co.uk

Hi. My husband and I have been in iva since april 2011. We have got ourselves into a stupid horrible mess with a payday loan that is spiralling out of control. Its worrying and upsetting me and I don't know what to do. I am too worried to tell our IP as I don't know what they would say. Every month it is getting higher and higher as we can't pay the whole lot off. My husband should get a bonus in feb/mar next year which would probabyly just clear it, but I am scared it will be even higher then than it is now. How do IPs deal with this situation? Is there anything we can do? Thanks in advance.

Well first off dont do nothing, that won't help. You will have to come clean with your ip regarding the loan. Why did you need to take it out in the first place? You know that most ips can arrange a payment break? Ok thats you had a telling off from me. Seriously dont worry too much but you really cannot simply hope this goes away. Is you payment to the iva too high that you had to borrow cash?

You arent the first and certainly wont be the last person in an iva to get caught up with a payday lender.

Paul

I thought payday lenders credit check you first.thats what they been saying on tv lately.

Payday lenders assess affordability. Some are better at it than others.

Avoid! !!

Paul

This borrowing could put the IVA in jeopardy so you must speak to your IP. He/she may be able to help by giuving you a short break to clear the payday loan but this may need approval of creditors. As Foggy says you must do something.

Definitely best to come clean now rather than later. It may well be that your IP is agreeable to you either making reduced monthly payments or a complete payment break to enable you to pay off the loan ASAP. I'd also recommend trying to get the loan company to agree to a repayment plan, such as for the original loan amount plus one months interest, pointing out that you're in an IVA etc., so at least whilst paying it off no more interest will be accumulated.

The downside would be that your IVA may then be extended by a few months to cover that shortfall, but the alternative is to continue to let it spiral out of control which could/would jeopardise your whole IVA.

Thanks for your replies. I didn't a payment break with the time added on at end of IVA may be a possibility...would definitely help and gives me more confidence to speak to IP. Am so annoyed that we got into this situation, can't believe we were so stupid.

Let us know how you get on Hilary, your IP should be able to offer you some support

Which payday loan firm is it? A credit check really should've taken place along with a review of your financial circumstances to check your affordability before giving you the loan.

It sounds like this wasn't done and if this is the case, then the payday loan company are as much in the wrong as you are.

Many payday loan firms are unscrupulous and do not carry out proper and stringent checks.

Hi Hilary, I would contact your IP soon and arrange a payment break within with the IVA just to clear that loan. That should get you back on track to continue with your IVA payments as normal, although extended but at least you will be back to the IVA payments that should be affordable. I know that's what i would do in this situation.

Maz

So, I have emailed my case officer. My heart is pounding, but I guess I just have to wait now and see what they say.

Better to get things sorted though. Good luck and let us know how things go.

Paul

Good luck. I hope you manage to get this sorted x

Good luck Hilary, fingers crossed your IP can help you to find you a solution

Good luck Hilary, hope it all works out,