So, you’re interested in getting down to business and getting an individual voluntary agreement? You’re not the only one. An IVA is really the key to getting out of serious debt, but you will still need to make sure that you have certain details in place.
One thing that people automatically assume is that they can do just about anything they want and their IVA will still go through as planned. Yet that really isn’t the case. Even if you’re secretly dreaming about winning the weekly lotto so that you can just pay off all of your debts, you’re still going to have to deal, with the reality of your situation. That means looking at the money that you have right now, not the money that you think that you should get down the line. This is a mentality that ends up having people making bad decisions — they think that it’s going to be okay if they spurge on things, because they know that they have a good chance at coming into a large windfall. It’s not a good idea to risk your present for a future that may or may not come at all. That would just put your family in a lot of risk that they don’t need to deal with. Why would you want to put your family through something that you can actually avoid? Wouldn’t you want your family to truly have the best of everything? Wouldn’t you expect things to actually go your way for a change? (more…)
These days, magazines, newspapers and websites are often filled to the brim with advertisements from companies professing to be able to offer you valuable debt advice. At the same time, the very same magazines, newspapers and websites are, in their editorial content, frequently warning you against working with them. This naturally leads to confusion for those in debt: On the one hand, they would love to receive advice from experts to help them deal with their problems. On the other, they are wary of these experts and unsure about what the exact advantages of working with them could consist of. Which is why we have compiled some of the most important benefits of debt advice and why it may help you to significantly bring down your debt.
Debt advice can provide important psychological support
For most people, what makes living with debt so painful is not just the idea of having to apply for bankruptcy, but the immense and constant psychological stress associated with it. Debt can make you feel helpless and hopeless, can make your life seem without meaning. Disappointed creditors can begin chasing you for their money, thereby making things even worse. In these cases, knowing that there’s someone who understands and can deal with creditors on your behalf can make a significant improvement to your quality of life and raise your spirits.
Debt advice can bring about a new approach to spending and debt
As part of debt advice, the debt management agency and you will analyse your current debt situation and your spending patterns. In most cases, the outcome of this analysis is highly enlightening. You will find that your debt is the logical result of dubious actions taken by you in the past, by mistakes you’re committing over and over again. By breaking the habit, you can prevent them from happening, thereby paving the way for a brighter and more secure financial future.
Debt advice can prevent things from spiralling out of control
Just like anyone would, you will most likely have asked yourself what the benefit is of paying for debt advice when you should really be paying off your debt. The reason is plain and simple: Debt advice can help you make a serious dent in your debt by putting the finger on the sore spots. It can lead to tangible solutions to your issues, keep you from piling up more debt and prevent you from having to apply for bankruptcy – all of which pay for themselves in the end. (more…)
If you are having trouble repaying your debt, a IVA might be the most practical solution, and a better alternative to bankrupcy. In this article we will describe exactly what a IVA is and how to apply for one.
First off, an IVA is a legal contract between you and your lender/creditor. It is entirely a private affair and ensures that a IVA will not damage your credit rating severely. This does not mean you should take a IVA light hearted, you really must think about your options in depth.
What a IVA does is allow you to pay a certain, manageable amount every month, for a total of 5 years on average, after which your debts will be fully wiped off.
To get started you must get in touch with a Insolvency Practitioner. They will look at your bills, payments, bank statements and the likes to help you decide on a fair, but manageable amount to repay. (more…)
What are IVA bank accounts?
What many people call ‘IVA bank accounts’ are simply basic bank accounts that don’t require credit checks, but may provide other services that can be really useful to someone on an IVA. But first – what’s the benefit of a no credit check bank account?
Bad credit bank account
When you enter into an IVA, it is recorded on your credit file for six years. Having bad credit can make it difficult to open a bank account during this time, as banks often ‘credit check’ applicants.
If you’re on an IVA and you need a bank account, you may need to open one that simply doesn’t require a credit check, or find a provider that won’t turn you down because of bad credit. On the surface, it may appear that a simple ‘basic bank account’ would do – as they don’t have credit checks.
However, some IVA bank accounts can supply more than just a ‘basic’ bank account. (more…)
More and more people seem to get locked in the four corners of debt, and it is very difficult to get out of it. There are a lot of reasons why many are stuck in this situation. One is that loans can be easily availed nowadays even if one does not have any collateral. Piled up debts is the outcome of being able to get loans fast and easy. There will also come a time when a person realizes that he or she can no longer afford to repay all incurred debts, which makes the situation even worse. Can you relate to this scenario? If yes, you might want to avail on an Individual Voluntary Arrangement or IVA.
The number of people with serious credit problems in UK has increased significantly; this triggered the rise of the IVA. Having multiple debts often leads to having uncontrollable finances and this can be resolved by seeking the help of debt counsellors. They shall provide you with doable solutions and give you advices on how you can put back your finances at the right track. Although this is one of the best solutions to debt problems, many people are not yet familiar with it – this has led them to filing bankruptcy. There are groups that offer bankruptcy advices free of charge, and it is also actually offered over the Internet. (more…)
Choosing to go with an IVA can be one of the most difficult decisions of your life. It is something which will have a big impact on you and your future. It is a good idea to do a lot of research, find out all of your options in order to make your final decision. It can be good to talk to other people, bring in experts and things like that.
It is good to make sure that you are fully aware of every option that you have and the consequences of that option. Make sure that you give yourself some time to think about those options and try to imagine what your future might be like depending on what you do.
This may sound rather melodramatic but once you choose an IVA or bankruptcy or whatever you may not be able to borrow money again and you will be setting yourself up for long term repayments of your debts. (more…)
Debt isn’t just something that people have to worry about “across the pond” — it’s definitely a problem in the UK as well. Of course, when you’re thinking about Christmas and having family over, you’re probably not thinking about an individual voluntary arrangement process. You’re not thinking about your debts at all, but the truth is that even if you’re not thinking about them, your debts are still giving you a lot of trouble. They’re still keeping you from getting that dream job, and they’re still keeping you from credit products that would make your life a lot easier in the long run. Surely there’s going to come a point where you want something more to life than just more debt and more problems. You will need to look into an individual voluntary arrangement sooner than later.
The relief that comes from having a workable way to get through your debt is going to make your life better — and the holiday season is the best item to do it because that’s when your creditors expect you to be thinking about anything related to your debt.
That can make you look very, very good in the eyes of your creditors. It does take a lot of strength to overcome your fears about your debt and make the right choice. It’s an alternative to bankruptcy that can leave your credit more healed in some cases. When your debt is just too large to manage on your own, it’s a good idea to get help before it’s too late. (more…)
One main advantage of an IVA is that you will be free of debts in 5 years. This may seem like a long time but if you consider how long it could have taken to pay off all of your debts then it is likely that it would have been a lot longer than that. The repayments will be the same throughout that five year term which means that you will know exactly what you have to pay back each month. This should help you to manage the payments and give you time to think about and learn about budgeting.
Once it is all paid back you will have proved that you are able to pay back debts. This means that you credit rating will improve and you will be able to borrow again if you wish to. It would not be advisable to borrow too much but it could mean that you might be able to get a mortgage or something like that which could allow you to build up an asset.
Because it is a legal arrangement it means that all of your creditors have to agree to the terms of the repayments and so you will not get hassled by any of them for payments. It will all be coming out of the single payment that you make each month. This will stop all the payment demands and telephone calls that you will have been getting that are demanding money. (more…)
If you are looking in to getting an IVA, then it is worth knowing that there are IVA advisors that can help you. You could look through all of the options yourself, read all the small print, work out which one will be the best for you. However, there are so many options out there that it could take far too long to look through them all. It may also be the sort of thing that you either find tedious or confusing.
It is worth bearing in mind that the IVA advisor will be looking for commission on the deal that they get for you and that might influence their decision. However, they do have a lot more knowledge than you about this area of finance and therefore are in the best position to let you know what will be the best choice for you. It is a good idea to talk to a few advisors before deciding which one you want to use. As well as making sure that they do know what they are doing and that they understand your needs it is a good idea to find one who you get on with. It is great to have an advisor that you like as you may be seeing quite a bit of them and you are more likely to trust them if you like them as a person. Therefore make sure that you talk to them a good few times before making up your mind.
The advisor may even be able to tell you whether an IVA is the best option for you, help you choose the right one for you and basically give you peace of mind that you have got the best deal for you. It can be quite a complex business as well as a stressful and sometimes lonely one and so it is a good idea to have someone working on your side as support will help tremendously.
Having an IVA can be a difficult situation to be in You will be committed to making a certain amount of repayments each month and you will have to find the money to pay your other bills as well. You may find that there is nothing left at the end of each month and you have no money to treat yourself to anything.
This may come as quite a shock to start with, but you need to just adjust the way you think about things. If you consider an expensive outfit to be a treat then you will need to change how you think and find treats which cost a lot less or hardly any money at all. Maybe a nice walk in the park, a visit with a friend or an ice cream. It can be very difficult changing the way of thinking and especially difficult when it comes to birthdays and Christmas and there is no money to buy gifts for anyone. It can be solved by explaining to people that there is no money but that can be quite embarrassing. So a solution could be to suggest that with the economic situation making things hard that gifts are not exchanged.
Another thing to do is to make gifts. Having to explain this to children though, can be extremely tricky and may be more of a challenge. However, as long as children get something, when they are younger they are happy and when they are older, they should be able to understand about the money situation. Also if there is any money left over at the end of the month, then save it and use that. It will take a lot of self-discipline and it will be a learning experience but it is a valuable lesson and some of the things learned will stick around for life.