Stop worrying about debt problems now if you are finding it difficult to deal with them.
There are many alternative means of dealing with debt problems.
In extreme cases, some of the borrowers resort to bankruptcy to get over debt problems.
They fail to look at the available alternatives.
There are many alternatives available which can help avoid bankruptcy.
An IVA is one such alternative.
Not any borrowers are aware of the benefits of an IVA.
You must understand what an IVA is.
Basically, an IVA, or Individual Voluntary Arrangement, allows a person in financial difficulty to reach a new formal agreement with their creditors.
An IVA allows a debtor to make repayments, of an affordable amount each month, to their creditors for the term of the IVA (normally 5 years).
After this period, the debtor will be considered debt free.
According to the terms of an IVA, the creditors are legally bound to write off any outstanding balance when the IVA finishes.
You must realize that from the outset that an IVA is a "Voluntary" agreement, and both parties must voluntarily agree to be bound by the IVA terms.
IVA debt write offs are quite popular with borrowers.
It helps them overcome debt problems quickly.
An Individual Voluntary Arrangements can write off a large proportion of your debts (subject to your circumstances).
If you can keep up with monthly payments, you can look forward to reduce debt burden considerably.
An Individual Voluntary Arrangements can help achieve all of the following: oPrevent any legal action oFreeze all interest and charges oHelp you get rid of CCJ's oPut an end to harassing calls of the creditors immediately.
oGive you a fresh lease of life.
oAn affordable monthly payment based upon your available disposable income.
IVA and bankruptcy are two extreme choices.
You must understand the thin line of difference between them.
Unlike bankruptcy, details of an Individual Voluntary Arrangements are not openly published anywhere.
It is a confidential arrangement between you and your creditors.
Not even the employers and landlords will be informed about it.
Moreover, there are very high costs involved with a bankruptcy.
It is an expensive affair.
Bankruptcy can leave an indelible mark on your credit score.
It can affect your chances of securing a loan easily.
An IVA on the other hand provides with an option of overcoming debt problems without risking your financial situation.
IVA debt write offs have helped many borrowers in the past.