Free Debt Consolidation

Individual Voluntary Arrangement or IVA debt help is quickly becoming one of the most frequently used and most reliable ways of alleviating some of the stress that being in debt can put you under. If you find that you are struggling to keep up with your monthly payments then it is worth finding out a little bit more to see if it is the solution for you.

How does it work?

The first step is getting in contact with a professional company who specialise in debt solutions. Once this is done, the company will then get any information needed to make up a more suitable payment schedule for your circumstances.

Is this a loan?

This is by no means a loan. The company you choose to use do not lend you any money at all, they simply make arrangements with the people you owe so that the amounts you are paying are reduced to a more manageable level.

Will interest and charges be “stopped or frozen”?

Any interest or late charges may not necessarily stop as a result of this. However, in most cases, if it can be seen that the debtor is struggling financially then putting a stop to late charges and interest is common.

How long does it take?

Any company you contact will usually start working on your case within 24 hours of you contacting them. Within a month they will have set up arrangements with all of your creditors to make an improved payment plan.

Will my credit rating be affected?

Choosing this option of debt management may well lead to your credit rating being lowered. This is down to the fact that you are unlikely to be meeting the agreed contractual payments.

What happens if I get letters or contact from my creditors?

Any mail that your creditors send out to you should then be forwarded onto the debt management company for them to deal with.

Does the offer have to be accepted by the creditors?

They do not have to agree to the new payment plan. However, the majority of cases do get accepted because the new payment plans are based on proper calculations of what you can actually afford.

If you require any further information about IVA debt help then you should get in touch with a professional who will be able to give you all the answers you need.

In the current economic climate there are increasing numbers of people who are struggling with mounting levels of debt. As a direct result of this, there seems to be an ever increasing number of TV, radio and newspaper adverts promoting companies that offer debt payment solutions. These solutions can be the most suitable option for people who are finding it hard to manage their debt. How do they manage to achieve this? Below is a basic description of the method used by the companies to get your debt down to a more manageable level.

A basic explanation of debt management would be that it aims to reduce and eventually clear your debt by arranging monthly payments based on what you can afford. Without this set up you may find that you are struggling to find the funds to meet your monthly repayment amount.

To go into slightly more detail, the first step you need to take is to find a suitable company to manage your debt repayment plan. Once you are happy with the services on offer you then give the company all of the information about who you owe and how much you owe them. They will then approach your creditor’s, show them the evidence that you cannot afford to pay the amount you have been paying and negotiate a better deal for you.

Once your creditors have agreed on the amended payments, the management company will combine all amounts into a single monthly payment amount. The new amount will be significantly smaller than if the previous amounts were all combined, this is then paid to the management company. The monthly payment that you send to them is then spread out between all of the people that you owe. Whoever you owe the most to gets the highest percentage and the least gets the lowest.

A large majority of cases will result in all interest being stopped on your debt levels so that it isnt increasing even more. This can be done due to the debt company having agreements in place with creditors. All in all using a reputable company for your debt payment solutions can often turn out to be the best option available as you only have to make one payment and the amount is much lower. Therefore if you are finding yourself struggling to keep up with payments then you should seriously think about this as a viable option.