AUSCC

I thought I’d talk about IVAs. The first question you’ll likely ask is What is an IVA?

Well, IVA stands for Individual Voluntary Arrangement and it is a UK government debt solution. It allows you to resolve debt and make your debt repayments without fear of bankruptcy.

Around 4000 people will enter into an IVA every month in the UK and your creditors are also happy for IVAs because it means that you will agree to pay a specific amount over the term of the IVA. Whereas right now you may have stopped making payments to your debtor. This is if you live in the United Kingdom of course.

If you happen to owe more than £15,000 to a few of your creditors then you may be eligible. It depends on a few other criteria as well. There are a number of websites that offer information about IVAs and they can tell you if your creditors would accept an IVA from you.

The good thing about an IVA is it can get your finances back on track while teaching you important budgeting and spending skills that can help you avoid the problem from happening in the first place. An IVA is not for everyone but it can be a great tool to get you back on track with your finances.