Iva - The Next Best Thing To Debts!

By Author: Sadhana Dhanyal
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If your financial situation is not sound, and you are wondering how to rectify the problem, then you can seek help from financial experts. They can help you out with your kind of problem. You need not worry. No matter how grave your situation is, you can find able solutions to it. If debts are your problem, then you must seek professional advice in handling them. The experts can help you sort out your problem capably.

Debt consolidation is one solution that you can adhere to. You can make use of this option. This will help you tide over the current financial crisis. You can better your financial position through the help of financial experts. If you were to consider debt consolidation, then you can easily tide over the financial situation.

What debt consolidation does is that it brings together various loans into one single loan and helps you make a single payment for all the debts. Hence, instead of making multiple payments to various creditors, you will now be required to make a single payment towards all. This will greatly help bring down the interest rates.

However, if your loans are just too many ...
... and you cannot benefit from a consolidation loan, then you can lay your trust in an IVA. Individual Voluntary Arrangements are considered to be the safest bet as against bankruptcy. They are the next best thing to get away from the clutches of loans. Basically, it is an agreement between your creditor and you. If you were to opt for this, your interests will be frozen and no charges will be put up against any of your accounts either. Some of the debt types that can be dealt with by an IVA are unsecured loans, council tax arrears, Inland Revenue, business rates, personal loans to friends and family. You cannot deal with secured or homeowner loans through this method.

Moreover, unlike bankruptcy, details of an IVA are not published anywhere. It is a confidential arrangement between you and your creditors. Even employers and landlords are not informed. An IVA will help achieve the following:

One reduced monthly payment to your creditors
A court order will stop any legal action by your creditors
Telephone calls and letter from your creditor will stop
Interest and charges are stopped, so the spiral of debt is halted
Fixed repayment method (normally 5 years) at the end of which all of your debts are discharged (any unpaid balances are written off)
All unsecured creditors to whom the IVA proposal is sent, are bound by the arrangement, even if they do not agree to the proposal, providing that 75% of your remaining creditors in value agree to the proposal
The IVA is not advertised or notified to your employer

These are the advantages of having an IVA as compared to bankruptcy.

Sadhana Dhanyal,content developer. For more information: Unsecured Tenant Loan


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