Angel Advance: Free Online Debt Advice, DMPs, IVAs & DROs

24/08/2021

Angel Advance Launches Fair, Transparent and Low-Cost IVA

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If you are looking for an IVA provider, we are glad that you found us.

In August 2021, we launched our new IVA fee scheme with low, fixed, transparent, and most importantly, fair, fees. Angel Advance now charges a simple £55 per month for your IVA - nothing else. And we mean nothing else, no other fees, charges, costs, or disbursements. All the costs of running your IVA are included in this fixed monthly fee.

With most providers (we checked every provider we could find), your fees and charges are disproportionately loaded towards the start of your IVA. This means, that if for any reason your IVA doesn't complete, any IVA payments you'd made would be swallowed up in upfront fees and you'd be back to square one, owing as much as you did at the start. We don't think this is fair or a good way of helping people with problem debt.

We have a proven track record of success. Successful completion of your IVA is our goal so we will work with you all the way to ensure that the end of your IVA means the end of your debt.

We achieve this high success rate by working closely with our clients to overcome the impact of life events on their IVA's. For example, of all IVAs that started with Angel Advance in 2018, only 3% had failed by 2021 (over 2 years later!). Compared to the rest of the industry, where 8% of IVA's started in 2018 had failed within just 12 months. Our high success rate means we can charge lower fees than other providers.

If you want to know why this is important, then please read on!

Why IVA Fees Matter

Although your monthly payment and length of the IVA may be the same with any provider, lots of other aspects are not. Most importantly, the fees you pay in an IVA need to be considered carefully as they can vary significantly between providers.

The amount that most IVA providers charge, and the way these fees are charged, can put your finances at further risk if you are unable to complete your IVA.

Typically, IVA providers charge a setup fee, which they call a "nominee fee". This fee is usually £1,000 to £2,000 and is charged at the start of the IVA before any money is paid to your debts. So, for example, if you are paying £150 per month into your IVA, then your first 6-13 months' payments would be taken up completely in setup fees.

What is not clear, however, is that in addition to these fees, they also charge other costs, sometimes called 'disbursements', to your IVA. Common examples are bonding (insurance for the IVA), software fees (yes, they charge you for the software they chose to use), land registry fees, postage, bank charges, claims etc. These are also commonly charged at the start of your IVA - meaning that, in most cases, you will pay nothing but fees for at least the first year (and longer in a lot of cases). Very little goes to the creditors until later in the IVA.

And the fees don't stop there... once they do start making payments to your creditors, a percent of your repayments are taken as 'supervisor' fees - usually 15 to 20%.

And you may think, that's it. Sadly not. If you then need to make changes to your IVA, i.e., your expenses have increased or your income has changed, they then charge what they call a 'variation fee' - a fee simply because they need to do a little extra work over and above their 'supervision' of your case. They may also charge fees for closing your account if you can't continue payments.

What are IVA costs and fees?

So, in summary, with most IVA providers you will pay:

  • A nominee fee (setup fee)
  • A supervisor fee (ongoing monthly % fee)
  • A variation fee (if your IVA needs to change)
  • Bonding fees (insurance)
  • Land registry search fees (to check if you own any property)
  • Software fees (paying the provider's costs for their own software)
  • Other costs (these can vary)

Typically, the total fees are in the region of £4,000 to £5,000, with a higher percentage being charged in the first two years of your IVA.

With Angel Advance - you pay one flat monthly fee (taken from your monthly payment) and nothing else! It's so clear and transparent, we don't need any small print on fees. *

*note - no other fees are charged - zero/nil (we just felt weird not putting in some small print)

Why do IVA fees matter to you?

IVA's can fail. In fact, across all providers, 8% of IVAs started in 2018 failed in their first year. More than 25% of IVA's started in 2016 had failed in their first 3 years (1 in 4). So, if your IVA provider charges high front-loaded fees, then you will find very little, and in a lot of cases - zero - has been paid towards your debts if it fails. Your situation when exiting the IVA early is likely to be worse than when you started it and, to make matters worse, some providers will also make a claim against you for the fees that haven't been paid.

So, please always check the fees involved and ask about the expected disbursements. Providers will often tell you that 'fees are included' or 'the fees don't affect the total repayable' - these statements are only true if your IVA succeeds. But IVAs last at least 5 years - think about how much things have changed in your life over the last 12 months alone. Fees can impact you even if things go well. If you earn or receive enough money to pay your debts in full, the IVA fees and disbursements will be payable on top so you could end up repaying more than you owe.

How to Get an IVA with Angel Advance

You can enquire about an IVA in the way that most suits you and your confidence in speaking about your finances. We know it's not easy for anyone!

Apply for an IVA online

Register a free online debt advice account here. You can work out your budget online, provide all the necessary details, and compare your options at the end. If an IVA is available, you can make your initial application online. This is a good route if you want to work at your own pace or outside of normal office hours, and you can take all the time you need to consider everything carefully.

Apply for an IVA by phone

Register a free online debt advice account here. You can work out your budget online, provide all the necessary details, and compare your options at the end. If an IVA is available, you can make your initial application online. This is a good route if you want to work at your own pace or outside of normal office hours, and you can take all the time you need to consider everything carefully.

Apply for an IVA by email or webchat

We can do a lot more than you might expect over email and webchat - even if it's just answering questions. It may take a little longer - but it's a good route for people who need more support but don't like speaking on the phone. Click the chat button in the bottom right or start an email conversation with us at info@angeladvance.co.uk

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