There is a lot of confusion out there at the moment about what an IVA can do for you. In the hope of setting the record straight this morning, our post will contain all the information you need to know. If you are struggling to meet your monthly debt repayments, an IVA could be the final solution to your financial issues. However, not everyone is eligible, and so you will mean to use a specialist calculator or undergo means testing before you discover whether or not you could apply. All the basic benefits are explained below in layman’s terms so that all readers can understand. At the end of the day, failing to deal with your debt situation effectively will almost certainly land you in hot water.
- IVA explained
Most people have little understanding of what an IVA is. So, we thought we’d better spend some time explaining. When you have a lot of different creditors, your monthly repayments can spiral out of control. In its most basic form, an IVA works by grouping your debts together into one payment. That means you will not have to worry about contacting lots of different firms each month. Of course, you end up paying more in the long run, but it’s better than everything being in such a mess.
- Affordable payments
The first main benefit of an IVA is that the company concerned will take a look at your financial situation and set up a payment plan you can afford. They understand that you will miss payments if you do not have enough cash for essentials, and so they factor all that into their decision-making. Once your schedule has been set up, you simply have to allow the company to take a direct debit from your account every thirty days. It’s a simple solution that is guaranteed to remove all your debt headaches.
- Stability
When you apply for a debt consolidation plan like an IVA, you are essentially applying for financial stability. Knowing exactly how much money you have to put aside each month will help you to make sure your wages always stretch. When dealing with multiple creditors, you always run the risk of forgetting something. As an IVA payment can be taken from your bank without the need to contact anyone, you just have to make sure the cash is in there.
- Financial freedom
While it can take a long time to pay your IVA agreement, it will give you more financial freedom. Once the debt has been paid, you will have complete financial freedom. At the current time, it is probably hard to imagine your life without debt. However, getting things sorted as soon as possible will mean your debts are paid sooner rather than later. Who knows? In a few years time, you could find yourself with a lot of spare income that could be spent on better holidays or accommodation for your family. Wouldn’t that be nice?
Having learned about the main benefits of an IVA, we sincerely hope you will consider improving your situation by contacting the right companies today. Make sure you shop around though. Accepting the first deal you are offered will never be a wise move.
