Are you having trouble with escalating and out of control debt? You’re not alone, and it is very easy to find that you can no longer afford to pay what you once could. People’s circumstances change all the time – jobs come and go, interest on mortgage payments can vary – and it’s all too easy to suddenly find that you are faced with constant demands for repayments and soon get behind. The resulting stress and strain can also be problematic, and the feeling that you don’t know what to do next is one that can border on despair.
In fact, you may qualify for a solution that will not only reduce your monthly payment, but that will also write off some of your debts at the end of an agreed period. It’s called an Individual Voluntary Agreement, and it is a preferred alternative to declaring bankruptcy, both for you and your creditors. How does an IVA work? First, rest assured this is a legal and above-board solution that can only be arranged by a licensed Insolvency Practitioner, so you are within the law at all times. Let’s have a look in more detail at what it’s all about.
All About IVA
You begin by talking to an IP who can help you decide the best step forward for you. For example, you can take IVA advice from Creditfix, who will work with you to arrive at a monthly payment that you can afford, based upon your income and outgoings. Bear in mind that, once you have entered into a legally-binding IVA, you and your creditors will deal only with the IP, and not each other. Your IP will take the monthly payment from you and distribute it among your creditors, who cannot contact you directly, and can take no further action against you. Furthermore, any interest charges will be frozen for the duration.
An IVA usually covers monthly payments over five years. At the end of this period, any outstanding balances may be written off. Your creditors will prefer you to enter into an IVA rather than declare bankruptcy, as the amount they will recover will be greater. You need to meet certain criteria to qualify for an IVA – check with your IP for the amount of debt you need to have, for example, and other personal circumstances that may influence the decision, so it is important that you talk to the right people.
Stress-Free Debt Control
An IVA will not only reduce your level of debt, but will also alleviate the stress you suffer from dealing with daily demands on your finances. The agreement will be administered by experienced people with the right knowledge and ability, and you will begin again with a debt-free existence at the end of a few years of simple monthly one-off payments.
If you want to know more about IVA solutions, we recommend you contact the professionals and check out the Creditfix website for all the information you need on how to get out of the debt trap.