Tackling Your Debt Problems Head On With An IVA Is Better Than Putting Your Head In The Sand

| September 26, 2012 | 0 Comments

A debt management plan can be a good way to manage your debts and make sure all your payments are met. Ignoring your responsibilities will only make the matter worse as legal proceedings can go on in the background like getting a “second charge” on your home or registering a CCJ against your name. In a worst-case scenario the bailiffs may be around to either take your possessions or your home from under your feet.

There are many avenues for a financial institution to recover their debt at any cost. In most cases they will sell your debt on for a reduced price and an aggressive recovery agency will take over the responsibility. In many recent documentaries and news reports the unscrupulous and underhand tactics used by these companies can be very disturbing if not against the law. With all of this happening in the background this can seriously damage your health and bring on extra stress.

By tackling the problem head-on with an IVA your payments can be made very simple and you will notice a difference in your household’s overall expendable income.



What is an IVA?

Firstly it stands for “Individual Voluntary Arrangement” it is a scheme that was set up by the government and it is important to understand that is not run by them. This scheme allows for an individual or household to clear their debts and get them reduced to a manageable monthly payment.

This should not be confused with a debt consolidation loan as it is completely different. What this does is it prevents your creditors taking action against you and it can also freeze the interest on the money that you owe. Also a large proportion of the debt can be written off and as high as 50% is achievable. You should be aware that any company that is offering higher figures as much as 90% of the debt written off are probably not telling the truth as this is not a realistic figure.

You will have to go through an application process to be eligible for this scheme and then be accepted according to your individual circumstances. You must have a regular income that is sufficient enough to pay off the debts and the most important aspect of an IVA is sticking to the agreement. If the agreement has been broken then you can be pursued for the full amount that you owe and all judgement and court proceedings will go ahead as normal.

This is not a decision to be taken lightly as there are many restrictions that are placed on someone who is under this scheme. It is important to take professional debt advice first before you go ahead.

Meeting with a professional debt adviser from a company like Clearstart is recommended as they will be able to discuss all of the different options available to you. You may find going under a different program more beneficial to you so it is important to have all of the options in front of you before you make a decision.

Category: Debt

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