If there’s any one word that can send shivers down an adult’s spine, it’s debt. Most people have some kind of debt, whether it’s a mortgage or a credit card bill. These types of debt can be healthy ways of building credit and accruing property.
However, if debt starts to overwhelm you, it can lead to problems. Your creditors may start calling you and emailing you frequently. Your credit score may begin to decline.
In these situations, there are several benefits of an IVA. An IVA is an Individual Voluntary Arrangement that freezes interest and charges on your unsecured debts.
Over time, this arrangement allows you to pay creditors in manageable increments. In this article, we’ll explore seven benefits of this arrangement to help you decide if it’s right for you!
- IVAs Let You Pay What You Can Afford
Some payment plans can overwhelm your budget since they don’t consider your daily expenses. However, an IVA will factor in your day-to-day living costs when building your payment plan. This way, you only pay what you can afford!
- IVAs Protect Your Assets
When we buy things like a house or car, we tend to think of them as “ours.” In reality, though, your creditors can repossess these assets if you fall behind on your payments.
Fortunately, an IVA can help. IVAs generally protect your assets from repossession so long as they have a reasonable value.
- Protecting from Creditors
Once creditors agree to an individual voluntary arrangement, the law requires them to respect it. As a result, creditors cannot directly contact you to request payments.
But don’t think of yourself as “off the hook” yet. You’ll still have to deal with an Insolvency Practitioner and their staff. These people will administer the IVA and deal with creditors for you.
- Fixed, Reliable Payments
Under an IVA, creditors cannot make any new charges or add more interest to your debts. This way, you can rest assured that your payments remain reliable. You can plan accordingly for each payment interval and budget around them.
- Writing Off Debt
The majority of IVAs last up to five or six years. Once you complete the IVA payments, the IVA firm will write off any remaining unsecured debt. In this way, an IVA is an excellent method for paying off debt.
If you’d like to learn more about becoming debt free, check out becomedebtfree.co.uk. This resource can gives several ways to manage debt.
- Protection From Bailiffs
Creditors can pursue legal action against you when you fall behind on payments. However, once you enter an IVA, creditors lose this right. All you have to do is stick to the terms.
- Potential Better Employment
Some jobs won’t let bankrupted people become employees with them. However, these provisions usually don’t extend to IVAs. Check your employment contract to ensure that IVAs won’t affect your employment status.
Enjoy the Benefits of an IVA Today!
If you find yourself unable to pay off your debts, there are several benefits of an IVA that can help. To get the most out of this deal, find a trustworthy IVA firm today!
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