IVA: Getting rid of interest, bank charges and annoying
creditor phone calls.
At Ashley ParkFinancial Solutions, we know that debt is common-place in the modern world.
From student loans, to bills, to payday loans, credit cards and mortgage
payments, debt is something we might all face at some point. Knowing the extent
and gravity of your debt situation and how to manage it is the first step
towards clearing it.
With the growing number of student loan debts and the increase
in short-term “pay day loans”, serious debt issues are rising quickly. Many people
don’t know how to deal with the situation and simply ignore the consequences
and the constant stream of creditor phone calls. But it’s important to be aware
that there are a number of debt solutions and help available – the weight of
mounting debt needn’t be a life-changing occurrence.
One of the many ways to manage debt – where repayments
cannot be met - is through an Individual
Voluntary Arrangement (IVA), which, in essence, gives you some space and time
to make reduced payments towards your debt without the added pressures of increasing
interest, account charges and contact with pushy creditors.
More
Information on IVAs
· - Setting up an IVA is beneficial both to you and
your creditors as it is relatively inexpensive compared to a bankruptcy
petition.
· - They spread a reduced debt over a certain amount
of time (normally 5 years).
· - They cover unsecured debts from personal loans,
credit cards, store cards, overdrafts, bank charges, medical bills, VAT and those
from Inland Revenue.
· - You only make a single payment each month including
any fees payable.
· - Your credit rating will be affected in the short
term and may be affected in the medium and long term.
· - Up to 70% of your debt can be written off and all
interest and charges frozen subject to
your Creditors approval.
· - Homeowners may be required to release equity in
their property in the final year of the IVA.
- Although an IVA offers a much needed respite and way out of
debt, there are still certain criteria that users must meet, including debts
over £7000 or more, proof of employment or regular income, and debts that are
unsecured (listed above).
For more advice, information, and details about debt
management, and in particular, about Individual Voluntary Arrangements (IVA)
and other debt solutions, Ashley ParkFinancial Solutions are always happy to help.
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