Wipe out debt burden with IVA loan service

In order to avail the IVA loan service you have to meet certain criteria as a borrower. You need to be in debt of at least £15,000 owed to three or more lenders. It is important that you should get best advice when the Individual Voluntary Agreement is chosen. Also the organisation offering this loan service should be professional and independent. It is very important as when you deal with an IVA practitioner, you are bound with an agreement for the time period of five years. So you should carefully understand various facts and clauses of the IVA loan deal before choosing.

The IVA loan service offers the much required respite for a debt ridden borrower. It allows you to make a formal proposal to pay your demanding lenders a significant percentage of your debt over a period of time with easy monthly repayments and after the set period of time you would be free from the debt burden. An Individual Voluntary Agreement enables individuals facing severe debt problems arrive at a legal binding settlement with the demanding creditors with the guidance of an Insolvency Practitioner (IP). If the proposal is approved by majority of the creditors (75% of your lenders) then this agreement comes into being and binds all the parties (your lenders and you) and prevents any further action like repossession.

The rise in the number of people seeking to set up IVA loan service suggests that it is widely viewed as a good alternative to total collapse of financial health like bankruptcy. Indeed, of the 70,000 insolvencies were filed in the year 2007 and out of which one third were IVAs. This agreement allows people in serious debt to come to a formal debt re-payment arrangement with their creditors rather than having to face bankruptcy.

Debt Management make life easy and comfortable

The debt management companies offer debt management services and deal with your creditors whilst you pay them one monthly payment, (hopefully) less than all your existing monthly debt bills. Debt management plans sound good but what if charges are building, interest rates are just as high and the only reason your paying less per month is that you'll be paying for a long time period. For these things, you have to go through your current financial condition, credibility of the service provider and the nature of your existing debt.

You should keep in mind that, you are not alone in such a precarious situation. Studies reveal that the nation's personal debt has reached record levels of more than £1.28 trillion and rising all the time with credit card debt alone representing more than £54bn. In such a situation, the professional debt counsellors offer debt management advice online and could help replace your debt with one affordable monthly payment that works out less expensive than paying off the cards with their interest rates over the same repayment period. You could also qualify for an IVA - Individual Voluntary Arrangement if the professional feels that your debt burden is high enough to be handled by debt management services.

There are some companies who offer free debt management services. Their free of cost financial advice will provide you with the answers and financially beneficial solution to your debt problems by entering into an agreement with an established and ethical company offering a deal that makes good financial sense to you. A debt management solution could replace your debt with one affordable monthly instalment that works out less expensive than paying off the credit cards with their interest rates over the same period of time.