If you have been missing out lately on your credit payments, then beware, because missing these payments could land you into serious trouble. Each time you miss your payments, it reflects badly on your credit score. Finally, if you have reached a point where your monthly credit is more than your earnings, it might be time to get an IVA done.
How does getting an IVA help?
IVA or Individual Voluntary Agreement helps you when you are stuck in these kinds of debt situations. You can find out more about these types of solutions by talking to the companies that offer these services. They also provide debt advisers sometimes and assign you financial assistance if you need one. Nowadays there are websites where you can look up for the services of the people who can provide you debt assistance. For example, logbookcalculator.com is a good IVA debt help website where you can even calculate the amounts which you will need to pay out beforehand for a certain period of time to clear out your debt.
IVA, when there is nothing else
Yes, all that being said, if you are unable to find any other option, then IVA should be your last resort, because once you get IVA done it is going to show up in your credit rating. So you will become less likely to get accepted for unsecured credit in future. That being said, if you are looking to get rid of the debt, the last thing you will need is to get into more debt. As soon as you make the decision to take the help of IVA, you can relax, knowing that now your debt will be paid off without fail and any hassles. The best part is that – that debt amount will be within your budget. You can even keep your house and some vehicle as assets.
The IVA Process
The process is pretty simple – each month you have to shell out the amount which is decided upon. This amount will have to be given to the company. It will contain their compensation as well as the amount which has to be paid to your creditors. These payments are absolutely flexible and they are not decided upon without your consent. Only after assuming how much you will be able to pay and how much you are currently earning, are these decisions taken.
The IVA process usually lasts for about five years. During this period, you will have to make that payment which you had agreed upon. Of course, situations might change within these years, but that’s the best thing about an IVA – they are really flexible. Anytime you face any lifestyle changes, or are unable to pay the current amount, you can talk to the firm, and they will help you manage the debt and it will be taken care of.
At the end of 5 years, provided you have paid off the agreed upon debt amount, you will once again be a debt-free individual. Any amount that is outstanding will be written off, and the creditors will not be able to charge you further with any payment requests or be able to take any action against you. They will actually not be able to contact you either. So, you become debt-free within 5 or 6 years.
How to choose your debt adviser?
Since most of the debt adviser companies offer you free advices, they will want to make profits out of some source or the other. Usually that is through a commission of some sort. If you find their resources helpful, then you must go with them. However, if you are not satisfied with their proposal you can always look at other places. It however, always helps to do some research on the companies before you invest with them.
This was all about IVA. Scottish Debt help is a different scenario altogether. The regulations for trust deeds there are different. Even though the process is the same almost, IVA is a lot different from the protected trust deeds and only those who are well versed with the trust deeds will be able to help you out with them. For Scottish debt help, click here.