Dealing with unaffordable debts the smart way

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Dealing with unaffordable debts the smart way

A worrying financial status can affect one’s quality of life tremendously. Having to cover high monthly payments for the pay off of various debts can often become challenging and frustrating, and in some situations, one might actually think about the possibility of filing for bankruptcy. If you are no longer able to handle your finances properly, and you are stressing daily on how to cope with your situation best, starting to look for actual solutions immediately is recommended. More and more debtors are directing tier focus towards individual voluntary arrangements as a far better alternative to bankruptcy, an option that brings various advantages to the table . If you don’t know much about IVA and are wondering if this is the answer to all your current financial burdens, learning more on the topic will allow you to reach a conclusion. Here are a few essential factors you need to be aware of:

What is an individual voluntary arrangement?

First, you should know exactly what an individual voluntary arrangement involves, this being the first step in the overall process of successful dealing with you debts. A short definition for an IVA would be a legally binding and formal agreement between yourself (the debtor) and your actual creditors, agreement that stipulates you will be in fact paying off your debts over a certain period of time. The agreement is a flexible one, which means you will have the freedom necessary to set your own terms, one that can fit within the specifics of your situation perfectly. The agreement can also not be alternated by your creditors in the future, because it will be approved by a court, so from a legal point of view, both parties involved will need to stick to the included clauses.

Benefits of an IVA

Why exactly is an individual voluntary arrangement actually a beneficial alternative for you? What advantages should you be aware of? Now that you know the answer to the common question – what is an IVA – you can start assessing the advantages and thus manage figuring out if this opportunity if actually worth contemplating upon. Among the various details that characterize such an agreement, these are the aspects that make it an appealing possibility for numerous debtors:

  • Become debt free quicker – an IVA will allow you to escape your debts far sooner than usual. Because there is a predetermined payment plan chosen in advance, in just a few years you can call yourself debt-free, and leave all your financial burdens in the past, which of course will positively influence your overall quality of life.
  • No more problems with creditors – you will no longer deal with regular phone calls or emails from your creditors or debt recovery companies. Because they have signed the agreement, they are no longer legally permitted to contact you demanding payments.
  • Affordable monthly repayment – in comparison with the amount you might be currently be forced to pay to cover debt, after the implementation of the agreement, your expenses in this department will become minimal ones. The monthly repayment that will be going to your creditors will be far more affordable, which is ultimately the solution you are probably seeking.
  • The government supports you – because this scheme is backed up by the government, you will not have to worry about any other complications arising. As long as you have been found eligible, you have come to the right terms with your creditors, and everyone involved is on board with the agreement, things will go smoothly from now one. Selling your home, or being subjected to other serious problems of this kind will no longer be a possibility.

Collaborate with the right advisor

Although after researching the topic for a bit, you will think you have all the information you need to successfully handle the writing off of your debts through IVA, collaborating with an advisor will however be necessary. The right professional will be able to simplify the entire process for you, providing you with all the details you need to conclude if you are taking the right steps in this department. When you have at your disposal clear, accurate answers, you won’t end up making any mistakes that could affect your eligibility. You will easily come across various online platforms where you can request free advice on the matter, from experts, with just a few clicks of a button. Look for testimonials on the web, and find out which advisors have met the needs and requirements of others in your position. The support of the right advisor will bring you closer to solving your monetary problems.

Preventing future inconveniences in the financial department

Despite the fact that an IVA will bring you’re the financial relief you have been seeking for a long time, preventing a potential bankruptcy or other scenarios that might frighten you, that doesn’t mean you won’t be dealing with other monetary problems in the future. Because you can always end up with the same financial struggles as before, if you maintain the same money spending patterns you are used to, it’s important after the approval of your IVA to start focusing on optimizing your monthly budget in an effective way. If you are unable to actually make an expense plan that works, you can always ask for the support of a specialist on the matter. Hire someone who can analyze your situation, discover where you are currently wasting money and help you create a well thought through plan and managing your income. This will allow you to stay on top of your IVA repayments and avoid repeating the same unpleasant case you are currently facing.

When your debts are piling up, and your financial worries are increasing, seeking a solution immediately is recommended. While you can’t escape your financial obligations entirely, there are a few useful things you can do, in order to bring things back on track and avoid dealing with a high level of stress due to this matter. Keep in mind the information stated above, and you will manage dealing with your situation effectively, and without further effort or complications.