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.
Call 0800 043 3535 or visit www.ashleypark.co.uk now.