You actually make a great effort in order to be able to make ends meet most of the times. Unsecured debt is accumulating very quickly, and you can hardly get rid of it. An IVA (or Individual Voluntary Arrangement) is a savior, and it might be the perfect solution for you to get rid of your unsecured debts in a comfortable manner.

Unsecured debt is your worst enemy: Very high interest rates payable Very expensive late payment fees Practically, a low total loan value

The main requirements of an IVA: That your debt totals at least £15,000 This amount is made up of unsecured debts you owe towards at least 2 or 3 different creditors Your debt is of unsecured type. You can make proof of a stable income

If you fulfill the above criteria, you are eligible for an IVA program. Many debtors who actually take on IVA as their main debt solution, have tried to take secured loans in prior in order to pay back their debts, or have tried out several debt management programs, which didn’t work out. There are a lot of benefits and advantages of such a debt solution, which will definitely convince you that this is the right option.

Let’s have a look at the main benefits & advantages:

• Once you are accepted into the program, you don’t have to deal with your creditors directly. Until now, you have probably been harassed by collection departments, home phone calls or even home visits, which were all reminding you that you must pay off your debts. Through the IVA, there will be an Insolvency Practitioner assigned to your particular case that will negotiate with all your creditors on your behalf. He will basically represent you in front of all your creditors.
  
  
• If you take out a secured loan (which is also risky for the safety of your property!), it might take even 10 years until you can pay it back. Through the IVA, all it takes is a maximum of 5 years until you can call yourself a debt free person. All the IVA programs last at the most 60 months, and only in exceptional cases it might get extended.
  
  
• Creditors might agree into erasing the extra charges: late payment fees, extra fees, interest rates, and so on. Don’t forget that a huge percentage of your debt is being made up of interest and late payment fees. With these reduced (or even totally wiped off in some cases), the overall amount of your debts will be reduced.
  
  
• Own efforts- this is the main principle upon which an IVA is being built up on. You don’t have to borrow money from one creditor in order to be able to pay off another, and so on, until you find yourself in such a vicious circle, you will hardly be able to get out of. Based on your monthly income, your IP, together with you, will work out a repayment plan. First of all, you will not be forced into making payments that you cannot afford – only affordable monthly payments. You should be able to pay your debt and lead a decent living, without huge sacrifices.
  
  
• You become legally protected, once you are accepted into the IVA, because it is a legally binding process.
  
  
• No more tossing and turning, sleepless nights of continuously thinking how you will possibly be able to meet 3 deadlines per month, all with different interest rates, different charges. An IVA supposes that you make one single payment each month, and this will be equally distributed among your creditors. Moreover, the IVA fees will also be incorporated within this amount, so that you don’t have any extra payment to make, or any other extra worries.
  
  
• If you keep up with all the payments, and show everyone that you are a responsible person, you will have only benefits by undertaking IVA as a solution. Plus, your credit rating is going to slowly build up and take a very good shape, so that you can count on it for future loans or financial benefits.