An IVA is a great way to learn about debt and avoiding debt. The reason for this is that when you have an IVA you cannot get any more debt. This means that you will have to manage without borrowing any money.

This may be something which is new to you and it will really help you to understand about how to manage on just the money that you earn. It may be very difficult to start with especially if you have been used to always borrowing money and perhaps managing on a lot more than you currently have. It can be a good thing though. If you have to spend five years managing on a very small amount of money, you will get good habits. You will be used to looking for bargains, not being extravagant and keeping to a very tight budget.

This means that when you do have more freedom again  and more money to spend, once the debt is paid off, you will hopefully not get in to debt again. Having to be on a very tight budget for five years can be quite a punishment anyway and it is likely to make someone cautious and careful and with all of that practice they are likely to continue being so. It may be assumed that they would want to have a big spend when they had been restricted. It is natural that there may be one or two treats that they would like to get, when they had the chance but with all that practice they are more than likely to be sensible and make sure that they continue to be careful with their spending.

It can act as a very good lesson and although it is extremely harsh, it is a great way to learn a lesson and to be able to start again and do a better job next time.