Stop creditor pressure and freeze interest rates through an IVA

Debt& IVA advice

Among the British adults and teens, being in debt and struggling to achieve a financial balance has become an increasingly common problem. Such a situation is indeed stressful and can put you in a tight state of mind when you know not what to do. Depending on the total amount of debt that you owe and your personal repayment ability, getting control on your finances might become quite of a challenge. Borrowing another loan in order to repay the first one would become a fighting-fire-with-fire approach towards repaying debt. This is when IVA comes in as an easy option with regards to dealing with unaffordable level of debt.

A list of the ways in which IVA may help you

Signing up with an IVA (Individual Voluntary Agreement) has helped millions of people get back on track, especially those who had given up hope on regaining control on their finances. Here are some ways in which it can help you out.

ü  Combine multiple payments into one single payment

ü  Make monthly payments more affordable in accordance with your income

ü  Freeze all interest rates and other finance charges

ü  Prevent creditors from pressurizing you into making payments

ü  Wipe off up to 85% of your total debt, that too legally

ü  Become free from the shackles of debt in about 5 years

How does an IVA work?

A legally binding agreement between you and your creditors is called IVA. This is done in the form of a contractual agreement as it allows you to repay affordable and smaller amounts towards the total debt amount and become debt free in around 5 years. If you can keep up with the terms and conditions of the IVA, you can repay the total debt in the aforementioned time period. When your IVA is accepted by your creditors, they don’t have the right to pressurize you in collecting money that you owe.

When are you eligible for an IVA?

Do you feel that your debts are taking control over your life and you’re getting unnecessarily stressed with your financial obligations? If answered yes, entering an IVA is perhaps the best solution for you. For total debt amount that is up to £12,000 and more than that, you can sign up with an IVA. However there are certain criteria that you have to abide by in order to enter an IVA. You need to owe debt to at least 2 creditors and you also require being insolvent to be eligible. Insolvency is when your debt surpasses all your assets in value and when you can’t pay off your debt when it becomes delinquent.

Yes, it is absolutely tough to deal with your harassing creditors when you start defaulting on your loans. But with the Individual Voluntary Agreement that you arrange with your creditors, it is easily possible to get back on track. If you’re in doubt, get help of a financial advisor who can guide you through the right path. For more information on this debt repayment program, you may visit

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