If you are in debt the sooner you get help the better. Ignoring your debts is by far the worst thing you can do. Your debt will grow and it will become even more difficult for you to pay it off.
Do not panic if your debt has already reached the point where you cannot meet repayments. There are ways to bring debt back under control and to do so quickly. One of the best vehicles for doing this are IVAs. However, to take advantage of this way of managing debt you need to have the IVA process explained to you in detail.
Tips for Seeking IVA Advice
It is very important that you get good quality advice before signing up for an IVA (Individual Voluntary Arrangement). Not doing so could result in your committing yourself to a legally binding agreement that you are unable to honour.
The best advice is available from firms who are members of DEMSA the Debt Managers Standard Association. Their members are properly trained. They understand the rules and regulations surrounding debt inside out. Importantly they are committed to drawing up the best possible IVA for each client. They are clear and up front about the consequences of going down the IVA route, so that there are no nasty surprises for their clients years down the road. Once you have IVA explained to you in this way you will be in a position to understand if an IVA is the best way to deal with your debt.
Meeting the Basic Criteria for IVAs
IVAs are not suitable for dealing with all kinds of debt. You can only take out an IVA against unsecured debt. This means that you cannot deal with mortgage debts using an IVA because that debt is usually secured against the property.
There is a minimal monthly payment level attached to IVAs. Usually the minimum payment is around £120 a month, so to enter into an Individual Voluntary Agreement you need to have at least these funds available after your normal outgoings. In most cases, people do have enough money available to commit to this level of repayment. IVAs are designed to reduce the monthly cost of the debt.