When to Sign Up for IVA

IVA or Individual Voluntary Arrangement is a fantastic program designed to help people with debt problems get out of their financial situation. When you sign up for the IVA program, a financial advisor will be assigned to help you; your personal finance will be reviewed by a professional who knows exactly what you are doing, and a set of recovery plans will be formulated to help you get out of your debt problems. All you have to do is stick to your plan for five years and all your debts will be repaid. Although IVA is a superb program that will help you get out of debt in five years, it may not be the best debt repayment solution for you. Before you sign up for IVA, you need to carefully analyze the nature of debt problems you are having. Prioritize your debts, understand the costs and monthly payment amounts of the current loans, and see if you can still use other debt repayment solutions to solve the issues.

Try debt management plan and see if your debt problems can be solved in a less than five years. A financial advisor will help you evaluate your current situation and see if an affordable debt repayment plan with a maximum of five years repayment term can be advised. If you can’t solve your debt problems using debt management plan in a matter of five years, then IVA is the better solution for you; with IVA, all the remaining debts will be written off after you have completed the five years term. IVA also won’t solve certain kinds of debts. Student loans, for example, cannot be solved using IVA; even if the lender allows you to repay the debt gradually over the period of five years and you can still benefit from the 0% interest over this period, the remaining principal amount will not be written off after five years. Loans that are secured against a property – such as your mortgage – also cannot be included in the IVA program. Although there is no doubt that IVA is a fantastic debt repayment program, you still need to see whether it is the best solution according to the situation you are dealing with. Using this guide, you will be able to see if IVA is the most beneficial option for you without hassle and any professional financial planner offering debt management advice will tell you the same thing.