IVA Debt Management

Introduction to IVA Debt Management

It can be said that there are a large number of people who are in debt, as the costs of living are rather high these days. There are bills to pay, food and clothing to buy and many other essentials people need to spend their money on. The problem is that people are offered numerous credit cards which give them the opportunity to spend money they do not really have. The debts on credit cards do not appear out of thin air, but the amount of money owed gradually becomes bigger and bigger. By the time people become aware of how much money they owe, in most cases it is impossible to get out of debt. This is one of the main reasons why IVA debt management is so important for the residents in the UK today. Owing to this fact, there are a large number of IVA debt management companies, which offer a solution in seemingly impossible debt related situations.

IVA Debt Management Companies

As it has already been mentioned above, there are a lot of IVA debt management companies in the UK. By and large, these companies charge for their services, so there is the question why spend more money when people already owe a large amount of money. However, it has to be taken into consideration that people who deal with IVA debt management are experts and they are able to provide their clients with an efficient solution to their debt problems.

What is IVA Debt Management?

An IVA (Individual Voluntary Arrangement) is a debt management plan made between people who owe money, the debtors, and people whom they owe money to, the creditors. The reason why so many people make these arrangements is because they are not capable of getting out of their debts on their own. Therefore, they most commonly hire an IVA debt management company which can help them solve their financial problems.

An IVA debt management company makes a plan on how people can pay back the money they owe and proposes the plan to people’s creditor or creditors. These arrangements are usually made to last for a period of five years. In this period, debtors are obligated to pay an arranged amount of money each month in order to pay off their debt. After the five years have passed, people are debt free and have no further obligations.

Who Can Apply For an IVA Debt Management Plan?

There is some information people should have about IVA debt management plans in order for them to know whether to apply for it or not. This information includes what the minimum amount of money owed to the creditors is, which will determine if people are suitable for an IVA plan or not. This being said, people who have debts higher than £15,000 and a steady income can apply for an IVA. Another thing people should be aware of is which IVA company they will choose. Taking into account that all of the IVA companies offer basically the same services, people will in most cases be offered similar IVA plans.