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Can Individual Voluntary Arrangement Be a Smart Debt Solution?

Are you drowned in debts? The constant phone calls and letters must be making your life difficult. On top of that, the looming danger of losing home or bankruptcy can intensify your woes. But don’t bother yourself to death thinking about all this. There is a safe way out through IVA (Individual Voluntary Arrangement). You can usually seek this solution if your debt amount is more than £6,000 and you can pay a fixed monthly amount for 60 months. It will not have any interest charges or other costs. At the same time, you can keep your home. The phone calls, letters, and everything else will stop. Once the IVA concludes, you will not have to pay any balance.

In essence, there are many benefits that you can hope to enjoy after negotiating an IVA with your creditors. In this article, you will learn about them.

A debt-free life

If you pay your monthly amount for five years, you can eventually become free from debts and the associated troubles. The creditors will not be able to reach you both during and after the arrangement. And the good thing is although you did not repay your entire debt, you can lead your life smoothly at the end of the 60 months cycle. The remaining debt amount will get cancelled.

Single structure payment

You will not need to pay different companies after entering into an IVA. All the debts combine into one monthly payment to go to an Insolvency Practitioner (IP), who would disburse the money to the relevant creditors.

Protection for personal assets

If you don’t wish to lose your home, car, and other contents, then this arrangement can prove to be highly impactful for your cause. You can protect your house and its items after signing up for an IVA. However, be aware of the fact that if you have a bigger stake in the house, then you may have to re-mortgage it to make the payment towards the conclusion of this agreement. Similarly, you can retain your car for official or personal reasons, but then again, you may have to check the rules. Read about Beat Debt.

Freedom from interest charges and others

After creditors sign an IVA agreement with you, they cannot ask you for interest rate payment. It will help bring down your cost drastically and give you some financial stability. A regular monthly payment will reach them, reducing the burden of your debt. Besides, you will not need to clear late payment or overdrawn charges towards your credit account. The fees will stop.

Allowances to cover essential needs

You may not have paid your phone bill or children’s pocket money to cover other necessary expenses. But you can take care of all these things by opting for an IVA. Your financial advisor can plan some allowances so that all the costs concerning food, entertainment, energy bills, children and others can be covered. You will only need to follow a budget.

The advantages of this type of debt solution are many. But you need to make a well-informed choice to avoid any unforeseen risks and challenges. For the correct guidance, you can visit once.

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