Is an IVA a Good Way to Get Out of Debt?

July 20th, 2010 | Posted in Loans

If you are struggling with debt you may have heard about the Individual Voluntary Agreement (IVA). You may be wondering if this is the solution to your debt problems. The IVA does offer some great benefits such as:

-          You will likely end up paying back less money than what you owe.

-          Your creditors won’t be able to take any further legal action against you.

-          You will only pay back what you can afford every month.

-          You will no longer have to pay any further interest.

These benefits are very enticing, and good reasons to choose an IVA. There are a few disadvantages though that you will also want to consider.

-          If your income increases in the meantime you may be expected to pay back more money to your creditors.

-          If you miss payments you are at risk of being declared bankrupt.

-          The fact that you have an IVA will likely be noted on your credit history.

Despite these few negative factors associated with the IVA it is usually a good choice if you can get it. Paying back less money and removing the threat of legal action can come as a huge relief.