Could an IVA provide the debt solution that you’ve been looking for?
If you seem to be constantly trying to juggle the finances in order to keep up with ever-increasing debts, there will undoubtedly be times when you simply don’t know where to turn. Each day seems to bring with it yet more letters and phone calls demanding money that you just don’t have, no matter how hard you might have been trying.
It may be that an Individual Voluntary Agreement could provide the solution. An IVA isn’t suitable for everyone, but if you meet the relevant criteria it could lead to you being able to reduce your monthly payments to a far more manageable level. If you aren’t sure whether you might qualify, all you have to do is call the specialists at Personal Debt Support.
If you qualify, we can help to arrange the IVA on your behalf. We can talk you through your income and expenditure figures before deciding on a monthly amount that you will be able to afford. Then, we can speak to each of your creditors in order to reach an agreement on their share of that monthly payment. Once agreement has been reached, you can look forward to more peace of mind than you will have had for a long time.
Understanding the pros and cons of an IVA
The IVA will be in place for a fixed period, generally five or six years, and when it comes to an end the remaining debts will usually be written off completely. This agreement will affect your credit rating, so you need to think about the long-term implications of this. You will be reassured by the fact that your creditors can no longer hassle you once the IVA gets under way.
As well as affecting your credit rating, there are other disadvantages to an IVA, including:
- Your creditors don’t necessarily have to agree to the scheme
- You have to keep up your monthly payment commitments
- Your IVA will appear on the Insolvency Register
- You have to have an income
- Your debts need to total at least £5,000
- Homeowners may be required to release equity to pay towards their debt, re-mortgaging may attract a higher interest rate. If no re-mortgage is available the IVA may be extended for a further 12 months
- Customers expenditure may be restricted during the time of the IVA
- Not all debts can be included in an IVA
- If the arrangement fails, there is a risk of bankruptcy
- An IVA remains on your credit file for 6 years after it is accepted, and may have a negative effect on your credit score for up to six years after the IVA is accepted.
One of the most important benefits is the ability to know how much you will be paying each month. You can then budget far more accurately, safe in the knowledge that the IVA is taken care of. Interest isn’t added to those debts that are included, so you will also know that the amount you owe overall will be reducing year by year. The peace of mind that an IVA can bring is extremely important.
To find out more about the benefits of an IVA, and whether you might qualify, have a chat with our friendly team soon. We’re available now on 0141 380 0578, and we can talk you through the whole process. We’ve helped many people to relieve their debt-related worries, and we’re waiting to offer you the same service. We hope you’ll get in touch soon.