There’s no denying the fact that all of us struggle with finances all year long. After all, with inflation being all over the place, sometimes it’s hard to strive for a good quality of life. Even more so when debt has accumulated to the extent that it is hard to pay off.
If you have been struggling with debt for a long time, the ideal way to deal with the situation is to find a solution right now. Otherwise, the debt problem will only get worse with time. This is when we would recommend you consider IVA.
IVA, which stands for individual voluntary agreement, is the easiest way to get rid of debt. And you can easily pay back the creditors the money you owe to them. Instead of having to sift through search engines to find answers to all your questions, we have figured out everything for you below:
What is an IVA?
An individual voluntary agreement is an easy way to pay back the debts that you’re struggling with. IVA is a formal agreement that helps the borrower pay unsecured debts at an affordable interest rate over a certain period. Since the interest rate is the only elephant in the room, it accumulates with the total amount owed. Thus, deteriorating the financial health of the borrower.
IVA was introduced by the Parliament to avoid bankruptcy in Wales and England. Now, they have gained massive popularity as a debt solution.
Is an IVA The Best Option For You?
Below we have mentioned the eligibility criteria for an IVA:
- You have to prove that you cannot reasonably pay off the accumulated debt.
- You should owe money to more than 2 creditors.
- You must have a stable source of income.
- You should be a resident of Wales, England or Northern Island.
- Your unsecured debts should easily amount to £5000 or more.
When you enter an IVA solution, it should be given serious consideration. You cannot take this law for granted. You need to consult a professional IVA company about taking the right steps. And they are obliged to answer each of your questions. Even if you ask What is an Individual Voluntary Arrangement (IVA), they will be thrilled to sift you through the entire process.
They will also tell if you’re eligible for this agreement or not. If you aren’t, they will recommend other solutions to eliminate debt. But if you think the IVA debt solution is best for you, ensure that you qualify for it.
What Debts Can be Included in This Agreement?
As explained earlier, most sorts of unsecured debts will be covered here. Such as, your home can be covered too. Below we have mentioned all sorts of unsecured debts that are included in the IVA:
- Credit cards
- Income tax
- National insurance arrears
- Store card debts
- Gas, water and electricity bills
- Payday loans
- Tax credit
- Council tax arrears
- Personal loans
- Debts to friends and family
- Joint debts
- Any outstanding bills