Individual Voluntary Agreements - A Closer Look

Is an IVA the best option for you? Read on to find out.

Individual Voluntary Agreements - A Closer Look

Do you have lots of debts spread across lots of places? Are you struggling to prioritise your debts - pay off your credit cards as well as your utility bills, rent and more?

Government established IVA's (Individual Voluntary Arrangements) are a good option for people with serious financial problems.

IVA explained:

An IVA is a legal contract with your creditors - such as your bank or building society - which is arranged to help you pay off a portion of what you owe, or your debts in full. You can start chipping away at all of your debts with one simple monthly payment.

The amount you need to pay off each month will be agreed between you and your creditors and the amount will be less than what you have to come up with at the moment. As long as you stick to all of your IVA conditions, a percentage of your debt will be written off at the end of the five year term.

What are the advantages of an IVA?

One of the main advantages of an IVA is that assets such as your home, car and personal valuables can be protected under the agreement. This will ease the pressure and worry, so you can really focus on clearing what you owe. There are no surprise costs with an IVA because all of your creditor fees are included in your monthly payment.

And what about the disadvantages of an IVA?

You will not be able to take out new loans of any kind during your IVA term. Be aware that your credit rating will be affected for a short period of time once you have completed the agreement. The consequences of an IVA will have no implications for you or your credit rating long-term.

If you think an IVA could be the right kind of debt management solution for you and you would like to learn more about the conditions of setting one up, or if you simply have some questions you want answered regarding IVA's - please give us a call on 0800 011 4634. We can give you professional advice and help you start managing your debts before it's too late.