IVA Debt Help FAQ

Individual Voluntary Arrangement or IVA debt help is quickly becoming one of the most frequently used and most reliable ways of alleviating some of the stress that being in debt can put you under. If you find that you are struggling to keep up with your monthly payments then it is worth finding out a little bit more to see if it is the solution for you.

What exactly does this involve?

You will initially need to get in touch with a specialist debt management company. Once this is done, the company will then get any information needed to make up a more suitable payment schedule for your circumstances.

Does this involve any lending?

This is not a loan in any way, shape or form. The company you choose to use do not lend you any money at all, they simply make arrangements with the people you owe so that the amounts you are paying are reduced to a more manageable level.

Will interest and charges be “stopped or frozen”?

The interest and charges on your debts may not always be stopped. However, it is generally accepted that if a debtor is in financial difficulty then stopping any further interest or late payment charges is a plausible option.

How long does it take?

Any company you contact will usually start working on your case within 24 hours of you contacting them. Within a month they will have set up arrangements with all of your creditors to make an improved payment plan.

Will my credit rating be affected?

Choosing this option of debt management may well lead to your credit rating being lowered. This is because you will probably not be paying the amount that had been agreed in the contract.

If the creditors send me any letters what do i do?

If you receive any correspondence from your creditors after the agreement is set up you should pass it on to the debt company or give their phone number to the creditor.

Do the creditors have to accept my offer?

Your creditors are not obliged to accept your revised payment plan. There is usually no problem though as the figures that are calculated for the new payment amount are based on your actual situation.

If you require any further information about IVA debt help then you should get in touch with a professional who will be able to give you all the answers you need.

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Take Debt Payment Solutions Into Consideration

In the current economic climate there are increasing numbers of people who are struggling with mounting levels of debt. As a direct result of this, there seems to be an ever increasing number of TV, radio and newspaper adverts promoting companies that offer debt payment solutions. These are often the best way for people with mounting debt levels to deal with their problem. But how do they actually work? Below is a basic description of the method used by the companies to get your debt down to a more manageable level.

A basic explanation of debt management would be that it aims to reduce and eventually clear your debt by arranging monthly payments based on what you can afford. You may already be finding it difficult to keep up with the amount that you are paying each month without having a proper payment solution set up.

Firstly, you have got to make sure that you find a firm that you find most suitable to deal with your circumstances. Once you are happy with the services on offer you then give the company all of the information about who you owe and how much you owe them. They will then approach your creditor’s, show them the evidence that you cannot afford to pay the amount you have been paying and negotiate a better deal for you.

Once your creditors have agreed on the amended payments, the management company will combine all amounts into a single monthly payment amount. This amount will usually be a much lower figure than the previous combined amount and is paid directly to the debt company. When they receive your monthly lump sum, they will then distribute it out to all of your creditors. Whoever you owe the most to gets the highest percentage and the least gets the lowest.

A large majority of cases will result in all interest being stopped on your debt levels so that it isnt increasing even more. This can be done due to the debt company having agreements in place with creditors. All in all using a reputable company for your debt payment solutions can often turn out to be the best option available as you only have to make one payment and the amount is much lower. Therefore if you are finding yourself struggling to keep up with payments then you should seriously think about this as a viable option.

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