Is it possible to have a loan while in an iva?

[FirstTimeMum0]

Would it be possible to get a loan while in an iva? I’m aware most places it probably wouldn’t be

I would say it’s possible but not recommended to be honest. There may be restrictions too.

Aren’t there conditions in your IVA that say you can’t without their permission, and that it can’t be over £500?

Would you want to? Surely you need to clear the IVA before getting a new loan?

The iva lasts for 5 years and I’m only 2 years into it. I’m only looking to borrow around £300 just wasn’t sure if it’d be possible or where would accept me.

Any loan you could get is likely to be at a huge interest rate. What do you need the loan for?

Have a look at the advice on stepchange's website. They're a good debt charity.

It sounds like you can but you have to ask permission and that it is best avoided if possible as you are likely to have a v high repayment rate. Is it something you can save for instead?

The loan is needed as my oven has broken, I have a 2 year old son so it’s not really something we can go without.

Thank you for the advice, only in desperate need as my oven has stopped working, with a toddler at home it’s not something we can go without.

Can’t you get one on n easy pay or something

@FirstTimeMum0 I would get a large airfryer for £140 - there really isn’t much you can’t do in one - even pizzas you can cut up

Have you tried grants? Contact your local council first, then try the turn2us grants search if your council can't help.

Adding more debt at a high interest rate to your existing debt problems isn't ideal

That’s a loan

You can go without an oven, and you can buy one cheaper than £300 - AO has them at £150. Save up.

I haven’t heard of easy pay before. I’m unsure if I’d be eligible due to my iva.

Are you on universal credit? They may be able to help

You don’t need an oven, you can get by for a while with a microwave and kettle, even better if you can get access to an air fryer or slow cooker.

You really do not want to add to your debt, you already have an IVA, the purpose of that is to reduce your debt and get rid of it, you are defeating the purpose to add to it now.

Look into grants, funding and second hand options. Let us know what cooking equipment you have access to and we’ll help come up with meal ideas.

I would buy or borrow an air fryer until you could save for it.

Speak to your insolvency practitioner before you do anything. You might be able to miss a payment and add it on to the end of your IVA or something - if possible, that would be better than incurring high amounts of interest that could make future payments more difficult. They'll be able to advise you on your options, I'm sure.

Even if you could - don't. You've fallen into difficulties paying off your debt already and the absolute last thing you need is any further debt. Even 'only' £300.

You don't need an oven - search FB marketplace and get a cheap airfryer. If you still want an oven, save for it.

I’ve got a halogen air fryer thing. It was about £40 on Amazon. It’s the most used appliance in my house and I use it for everything. I’ve barely used my big oven since, only if I’m cooking for more than me and DS or at Christmas. It’s a brilliant bit of kit. If you can afford that you won’t miss your oven and it will give you some time to save. I’m sorry that you’re in this difficult situation. I hope things get better.

It doesn’t even need to be £300 - plug in ovens start at £160! No electrician required. This is how people get into debt problems - not looking at the alternatives.

@TheFormidableMrsC yep - I would be getting an alternative

Have a look on your local Facebook pages for an airfryer. We’ve barely used our oven since getting an airfryer.

Even if you were accepted for a loan, which is doubtful, it would be hugely expensive interest and how could you pay it back?

In any case, the budget you've agreed as part of your IVA should be sustainable over the long term and include a modest emergency fund, eg £50 pm, to allow you to replace things like ovens.

It should also be relatively generous for things like groceries, meaning that if it came to it, you'd have scope to cut back for a few weeks and free up money to buy an air fryer.

So if you think your budget is too tight, don't forget you should be reviewing it annually, talk to your supervisor about accounting for cost of living payments.

As you have a good reason, you could request a payment break from your IVA for a few months.

Then you could put the money you'd normally pay into your IVA towards the cost of a new oven.

I realise this wouldn't give you the money you need straight away, but it's an alternative to taking out a very expensive loan, so worth considering.

Under the Consumer IVA Protocol, the Insolvency Practitioner supervising your IVA can grant up to 9 months payment break. The missing payments are added to the end of your IVA.